Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Proud_Infidel who wrote (12941)	7/31/2001 10:47:51 PM
From: Gus	Read Replies (2) \| Respond to of 17183

....In a report to be released next month detailing actual 2000 results for SAN deployments, Gartner Dataquest will find EMC added to its #1 position in SAN revenue in 2000, capturing 38.8% of the worldwide market. Overall, the worldwide SAN market grew to $4.84 billion in 2000, Gartner Dataquest will report. 38.8% x $4.84B = $1.88B. Earlier, Gartner estimated EMC's share of the CY2000 external RAID market at 34.6% so it makes sense that EMC's share of the SAN market was higher that its overall market share because SAN/NAS represented. the fastest growing parts of EMC's business. ....According to Gartner Dataquest, EMC captured 36.3% of the $1.4 billion NAS market in 2000. 36.3% x $1.4B = $508M. EMC booked $508M in NAS revenue last year largely on the backs of classic Celerra because Celerra Highroad, Celerra SE and Chameleon NAS became available only in December 2000. EMC booked $285M in Celerra/Chameleon NAS revenue in 1Q2001 and $277M in 2Q2001. This means that EMC has already booked more NAS revenue ($562M) in 1H2001 than for the entire year of 2000! This makes sense considering that Celerra is really a high-end NAS solution which sells to a different market segment than the Chameleon NAS which is a mid-range NAS solution that allowed EMC to go after a bigger part of the overall NAS market. For comparison, note that NTAP booked less than $350M in NAS hardware revenue in its last two quarters. EMC's $562M vs NTAP's $350M! If I'm not mistaken, the crossover between NTAP's NAS hardware revenue and EMC's NAS hardware revenue occurred late in 4Q2000, after adjusting for the differences in fiscal years. The SAN/NAS numbers from Gartner also make it easier to compare with the IDC numbers. IDC uses Networked Information Storage (NIS) while Gartner uses Fabric Attached Storage (FAS) to refer to the same thing: SAN+NAS. EMC uses Networked Information Storage to refer to SAN, NAS and Connectrix revenues. EMC SAN/NAS Market Share CY2000 IDC vs Gartner Comparison IDC Gartner 2000 2000 SAN * $1.88B (38.8%) NAS * .51B (36.3%) EMC SAN/NAS $2.01B (30.5%) $2.39B (38.3%) Total 2000 SAN/NAS Market $6.60B (100%) $6.24B*(100%) IDC did not break out SAN and NAS numbers. Gartner Dataquest: SAN ($4.84B) + NAS ($1.4B) = $6.24B Roger Cox, Chief Analyst at Gartner Dataquest, said, "Networked external disk storage represents a strategic acquisition that is required to support the competitive health of an organization. As the industry continues to move to the fabric-attached, information-centric model, vendors will increasingly find that offering a spectrum of networked solutions to customers will not be an option, but a requirement."**