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

To: Sully- who wrote (9525)	11/13/2001 8:12:31 PM
From: SecularBull	Read Replies (1) \| Respond to of 10934

EMC Still No. 1, but IBM Sees Gains - IDC By Tim McLaughlin BOSTON (Reuters) - EMC Corp. (NYSE:EMC - news) will end the year as the reigning king of data-storage systems, but turmoil in the industry has allowed IBM Corp.'s Shark storage machine to nibble away at EMC's commanding lead in market share, according to a preliminary forecast by research firm IDC. EMC is expected to lose 6.2 percentage points of market share this year in external storage hardware sales, according to IDC. EMC's overall business has contracted this year as data-storage customers downsize their data centers and drive down prices amid stiffer competition in the industry. The decline at Hopkinton, Massachusetts-based EMC comes as archrival IBM Corp. (NYSE:IBM - news) picks up market share for machines that store e-mail, credit card bills and other vital corporate information, IDC said in a draft report that will be studied closely by Wall Street. EMC's market share for external hardware storage systems is expected to slip to 25.3 percent this year, compared with 31.5 percent in 2000, according to IDC. EMC still holds a commanding lead over its next closest competitor in an external storage market that's expected to drop to $14.9 billion this year from $17.7 billion in 2000. IBM will edge out Compaq Computer Corp. (NYSE:CPQ - news) for the No. 2 spot in that segment with a 11.6 percent share this year, up from 6.8 percent in 2000, according to IDC's forecast. Compaq's market share is expected to move up slightly to 11 percent, up from 10 percent. IBM's storage hardware sales are getting a boost from its Shark product, which is being plugged into mainframe computers and other data-storage environments. ``EMC was growing in leaps and bounds because they were taking mainframe storage from IBM,'' said Bob Samson, IBM's vice president of worldwide storage sales and operations. ``We have a lot more work to do, but (this report) is a good endorsement of our strategy.'' Michael Gallant, an EMC spokesman, said the mainframe market for storage hardware is ``rapidly shrinking.'' He also said storage sales in the mainframe market are price sensitive and take less software. Software sales have been a key driver behind EMC's profit margins, which have dropped dramatically this year. Gallant pointed to EMC's surging performance for network attached storage, a sector that will grow nearly 14 percent this year, according to IDC's forecast. IDC expects EMC to overtake Network Appliance Inc. (Nasdaq:NTAP - news) in that market this year with $777.2 million in revenue, or 42 percent of the network attached storage market. Network Appliance, which controlled 45 percent of that market last year, is expected to drop to a 32.5 percent share, according to IDC. Adam Trunkey, a spokesman for Network Appliance, said the company will rebound next year as price becomes more of an issue. ``We're about one-quarter of the cost of EMC,'' he said. EMC's market share within storage area networks, which are customized networks for storage devices loaded with software, is expected to dip slightly to 37.9 percent this year, compared with 39.5 percent in 2000, IDC said. Customers have been postponing purchases in that sector, which involve complex and expensive storage systems, IDC said. Nevertheless, IBM's market share in that sector will nearly double to 18.2 percent, up from 9.6 percent in 2000, IDC said. That would give IBM the No. 2 spot, overtaking Compaq, whose market share slipped to 17.9 percent from 19 percent.

To: Sully- who wrote (9525)	11/14/2001 12:46:05 AM
From: BirdDog	Respond to of 10934

...also, the firm says that the blending of SAN/NAS may leave Netapp out in the cold. Finally, NetApp will have difficulty gaining share in database, as performance issues are too great and initial tractions are likely to stall... This is a typical example of complete lack of knowledge about NTAP. NTAP is the leader in SAN/NAS blending.... not out in the cold. And they didn't get the Oracle contract for doing PlayStations. He's got it all backward....as usual... And on post 9528...IDC is another Moron... Doh! Post 9529... I agree. Although we're up against the same old stupid prejudice against NTAP. Facts on storage theory are all old and they won't accept the new knowledge(products) until it is proven overwhelmingly on a quarterly report. NTAP will have to prove itself strongly before they accept the truth. BirdDog@LookingToBuyBackIn.com