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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: 100cfm who wrote (8882)	8/5/2001 1:18:31 PM
From: BirdDog	Read Replies (1) \| Respond to of 10934

If the price of a NAS system is $1 and EMC drops their price to 75 cents then it will make it a harder sell for NTAP... Where have you people been? I've seen accusations that EMC has given NAS filers away for FREE along with a SAN system. Then turned around and booked the revenues as NAS sales.... Hasn't anybody been paying attention? Did anyone pay any attention to, or check on DS's ranting? This is no longer a nas/san game as of June 18th! Am I completely dilusional? BirdDog

To: 100cfm who wrote (8882)	8/5/2001 4:03:40 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 10934

re: The evidence of any of this happening (price war in storage) will be in the margins. We need to watch for an increasing decline in margins. It's already happening. EMC's gross margins were 47.0% in 2Q01 (ended 6-30-01), compared to 57.9% in 2Q00. emc.com

To: 100cfm who wrote (8882)	8/5/2001 5:25:26 PM
From: techreports	Read Replies (1) \| Respond to of 10934

Since I'm still holding all my shares, I sure hope you're right. But I no longer only look at the positives, I concentrate more on what could be the negatives of a company. This way I'm more in tuned on what the downside could be. If the price of a NAS system is $1 and EMC drops their price to 75 cents then it will make it a harder sell for NTAP and if NTAP starts to lose sales they will have no choice but to get down in the gutter with EMC. I'm not saying it will happen but that is one of the downside possibilities of EMC's actions. I agree. It could be ugly, but right now EMC is just talking. Still, this is a problem many companies face. If an ISP lowers its price, the competitors either lose market share or lower their price as well. However, if Network Appliance doesn't have enough barriers or differentiating features to separate their product from a competitors', then this isn't a company i want to own. Look at Microsoft, Aol, eBay, Intel, Siebel. All these companies have raised prices in the past. Their competitors offer products that are cheaper yet still can not gain market share. If Network Appliance can not do the same, then they shouldn't be included in the list above. Most would consider Dell in a different category than say Intel, Siebel, or Microsoft. However, Dell had a unique business model allowing them to have the lowest cost product, so they were the ones putting pricing pressure on the other OEMs. It's already happening. EMC's gross margins were 47.0% in 2Q01 (ended 6-30-01), compared to 57.9% in 2Q00. Although i think the CEO of EMC said that margins will go back up once the economy recovers..