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Technology Stocks : StorageNetworks, Inc. (STOR) -- Ignore unavailable to you. Want to Upgrade?

To: D.Austin who wrote (130)	5/14/2001 9:00:38 AM
From: stockman_scott	Respond to of 187

StorageNetworks strikes alliance with Fujitsu Ltd. By Tim McLaughlin <<BOSTON, May 14 (Reuters) - StorageNetworks Inc. (NasdaqNM:STOR - news) on Monday said it had struck a deal with Fujitsu Ltd. to have the Japanese electronics giant sell its data-storage services on a broader scale. The alliance calls for Fujitsu to offer a package of services called STORfusion to its customers, executives at StorageNetworks told Reuters. ``This gets us into new markets very quickly,'' said Susan Frankle, senior director of marketing at StorageNetworks. She also said StoragNetworks expects a ``pretty immediate'' impact from the deal. The firm's stock is up about 50 percent since April 18 when it reported first-quarter revenue of $27.1 million, a 28 percent gain over the previous quarter. StoragNetworks also landed Ford Motor Co. (NYSE:F - news) as a customer earlier this month. Similar to a utility providing electricity, Waltham, Massachusetts-based StorageNetworks allows corporations to plug into its data centers for their data-storage demands. Storage service providers make up a small portion of the overall data storage market, which is expected to grow to $100 billion by 2004, according to research firm IDC Corp. Backed and run by several former executives at EMC Corp., the No. 1 data-storage firm, StorageNetworks also is targeting large telecommunications firms such as the Baby Bells for more alliances. ``The telcos are looking for ways to use their existing infrastructure and customer base to add more services,'' Frankle said. ``Data storage services are a key opportunity for them.'' Frankle said many corporations have abundant storage capacity, but they find it difficult to manage the tidal wave of digital data generated by e-mail, online transactions and photographic images. Besides selling hardware, data storage firms increasingly are offering software and management services to bring efficiency to those corporate storage networks. In addition to selling a package of StorageNetworks' services, Fujitsu will establish an ongoing service relationship with data storage customers. Shares of StorageNetworks closed at $19.27 Friday on Nasdaq trading, well below their 52-week high of $154.25.>>