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: Bob Frasca who wrote (13702)	1/3/2002 1:08:13 PM
From: JakeStraw	Respond to of 17183

This is interesting - EMC's storage management architecture and software solution may do for storage management what Microsoft Windows did for personal computing: Establish a de facto management standard in a market that has resisted standardization for the past 30 years.

To: Bob Frasca who wrote (13702)	1/3/2002 4:10:18 PM
From: Gus	Read Replies (1) \| Respond to of 17183

Good article. While the effort will likely find critics among long-standing EMC competitors, the truth is that EMC, with its current market position, is uniquely positioned to offer its management framework as a de facto standard. EMC's key advantage remains its ability to support more servers and networks than anybody else. As a result, it can support more databases and applications than anybody else. That's why it leads the SAN market with 38% and the NAS market with 42% and is the only vendor with more than 5% share of the SAN market and 5% of the the NAS market. SRDF is EMC's first software product. SRDF was introduced in 1995. EMC Software has done a phenomenal job of penetrating its installed base even as EMC was expanding its share of the market. For instance, EMC ONLY entered the open systems market in 1995, the same year that it toppled IBM from the top of the $4B mainframe storage market with 41% share vs IBM's 34% share. In less than 3 years, EMC's Open System revenues already exceeded that of its Mainframe revenues. In less than 3 years, the percentage of new Symms that ship with EMC Software went from less than 1% to 60%! This is very significant because it means that if EMC continues to control 40% of the networked storage market, as it does now, and it continues to sell an average of 12 software products per networked storage deployment, as it does now, its share of the storage market will keep on growing faster than the industry. Additionally, this will mean that everybody else is competing for the 60% of the networked storage market that EMC doesn't control with server and storage systems that already have serious problems supporting other servers and storage. That's the opportunity that EMC is trying to tap with AutoIS, which really represents more incremental revenue opportunities. EMC EMC % of New Symms Software Software/ that ship Sales Services* with software 1995 $ 25M $ 32M ~1% 1996 76M 93M NA 1997 177M 221M 40% 1998 445M 556M 60% 1999 822M 979M NA 2000 1.4B 1.8B 80% 2001 ~1.5B ~2.0B ~80+% *Assumes that EMC Software pulls the same percentage of Services revenue as Veritas, as follows: Veritas Software/Services Software Services Total 1995 78% 22% 100% 1996 82% 18% 100% 1997 80% 20% 100% 1998 80% 20% 100% 1999 84% 16% 100% 2000 82% 18% 100% 2001 ~76% ~24% 100%