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: William F. Wager, Jr. who wrote (13326)	10/16/2001 6:15:36 PM
From: orkrious	Read Replies (1) \| Respond to of 17183

EMC says ex-worker could disrupt $1 bln in business A former EMC Corp. (NYSE:EMC - news) executive has accused the world's top maker of data-storage systems of improperly booking revenue after EMC filed a lawsuit against him to protect trade secrets amid a bid for an estimated $1 billion in potential revenue with customers such as Dell Computer Corp. biz.yahoo.com

To: William F. Wager, Jr. who wrote (13326)	10/17/2001 12:39:39 AM
From: Gus	Respond to of 17183

As usual, one has to play around with IBM's numbers to find out what it does not want to say outright: MIPS Growth vs Total DISK Growth (including SHARK) Last 7 quarters MIPS Total Disk Shark SWAG Shipments Revenue Revenue Total Y/Y Growth Y/Y Growth Y/Y Growth Disk Rev. 1Q00 - - - (~$250M) 2Q00 1% 30% - (<$250M) 3Q00 ( 2%) 50% - (<$250M) 4Q00 100% 19% - (<$250M) 1Q01 40% 60% 82% (~$375M) 2Q01 43% 35% 55% (~$300M) 3Q01 40% - 14% (<$300M) Notes: 1) Shark was introduced in 4Q99. Shark currently represents about 2/3 of IBM's Total Disk revenue and is definitely growing much faster than the other third, which consists of proprietary SSA storage in a state of decline. IBM doesn't release revenue numbers, but it indicated that Total Disk's 60% growth translated into $150M in 1Q01 revenue growth implying 1Q01 revenue of around $375M. 2) MIPS means Millions of Instructions Per Second. It is a measure of mainframe processing power used by IBM in mainframe pricing. Currently around $800-$900 per MIPS. Mainframe MIPS are also used by mainframe software vendors and services companies. IBM introduced its G7 (zSeries) mainframes in December 2000. After shipping around 250 zSeries mainframes in 4Q01, IBM has sold an average of 83 mainframes a month. Mainframes also pull in a significant amount of storage, software, services and financing. High-end Unix server vendors usually try to undercut IBM's MIPS pricing. Sun, for example, is selling its latest mainframe killer (StarCat) at around $200-300 per MIPS. The rapid decline in Shark revenue while MIPS shipments remained relatively constant is the clearest indication yet of IBM's scorched earth pricing strategy. Last year, IBM effectively got $25 out of every $100 in mainframe storage revenue compared to EMC's $45 out of every $100. 3) SWAG - Swinging Wild-Assed Guess.