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To: Bill Fischofer who wrote (9601)5/9/2001 12:12:56 AM
From: Allen Benn  Read Replies (1) | Respond to of 10309
 
Everything is being driven by people productivity. The reason why the storage-centric paradigm is tearing the enterprise computing world apart and dethroning the central processor is entirely due to the need for staff productivity to keep pace with the explosive growth in storage. This is already the driving force in the enterprise space and will become overwhelmingly dominant over the next few years. The hardware cost is almost irrelevant--something that the "our box is cheaper" crowd still don't quite understand. The structures and architectures needed to manage petabytes relegate these factors to rounding errors.

Some things are worth repeating.

I find myself agreeing with you about all the macro factors, yet we disagree on the final outcome. Interesting. Here is what I think our difference boils down to:

You equate “commoditize” with second-rate and cheap, especially in comparison to EMC’s top-notch management software. I think it means much more than that, something much more threatening to entrenched incumbents.

I view the storage and networking components Intel and WIND are bringing to the market as magnificent, beyond anything EMC could conceive on its own in multiple lifetimes. But admittedly the value of these components, especially the synergies, will take time to overshadow proven capabilities of an EMC or Cisco. When they do, your arguments will still be true, but the names will change.

We shall see. I just wish we could speed things up so we can it see it play out in months rather than years. In the meantime, EMC and Cisco will continue leading their sectors, and WIND will achieve rapid growth in network storage from a relatively insignificant base.

I’m glad I questioned you about EMC not being a box maker.

Allen