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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Joe Wagner who wrote (4337)	1/24/2002 3:44:34 AM
From: Gus	Respond to of 4808

They will come when they will come. As you know, applications drive infrastructure. Both SEBL (new licensing revenue) and SAP (total revenue) guided to 15% growth in 2002. SANs are one of the key infrastructure investments for CIOs who have very specific ideas of how they want their transactional and analytical systems to produce useful information. Also, get a load at the IT budgets of US Financial Institutions as reported below. McDATA has 13 of the top 15 US financial institutions and 9 of the top 10 telecommunications companies. EMC indicated that one of the most interesting things that these financial institutions are doing is that they are starting to actively shift the entire workload of their data centers from week to week as part of their business continuance strategies, i.e., one week datacenter A is active while datacenter B is on standby then the next week B is active while A is on standby. That implies that these institutions continue to invest heavily in advanced networking equipment to connect their very large storage networks. Since 9/11 demonstrated that a disaster affecting one data center can expose the customer to the risks of having only one data center, it's not surprising that the telcos are rushing to offer 'third or fourth mirror' services to these institutions to obviate the need for spending in another data center. Having the same McDATA plumbing layer is a big deal that will certainly influence decisions of the smaller financial institutions in much the same way that these banks generally standardized on Symmetrix during their last consolidation phase. US Banks spend big on tech Wednesday 23rd January 2002 by Jack Of Hearts Whilst much of the world is still debating - and haggling - over their tech budgets, the financial sector seem to have committed early to a big spend this year. The latest findings of a study, from Celent, suggest that tech budgets in US banks are going to rise by around 4% - and that could put an awful lot of money in the vendors pockets. The leading banks in the US appear to have fantastic sums of money to pump into technology, with an average annual budget ticking along at the $2 billion rate. According to Celent, some banks in the US are spending as much as 25% of their total expenses on IT, which is why the tech vendors are so keen to tap into this market. The biggest spenders in the US banking sector are no great surprise. FleetBoston, for instance, is likely to spend as much as $0.9 billion on technology this year with Wachovia Bank just topping that with $1.1 billion. Bank One, which recently closed its Wingspan online intiative, and Wells Fargo are going to be spending in the region of $2 billion whilst Bank of America is aiming high with a $3.3 billion tech budget for 2002. The really big hitters this year, in terms of tech spending, are going to be JP Morgan Chase which, according to Celent, is planning to spend $4.7 billion. Finally, there is Citigroup which tops the pile of big spenders with a staggering $5 billion IT budget for 2002. Perhaps the reason for this surge in tech spending by banks is the simple fact that they don't have any choice. Financial institutions, more than any other sector of business, have unnatural pressures on them that, to an extent, force their hand when it comes to technology. They have security to keep on top of, transactional processing that simply can't stop, and an enormous gathering of customers that are demanding increasing levels of, and access to, services. Naturally this is going to put pressure on the banks but the question that the vendors will want to know the answer to is what are they going to spending on? As ever it's the usual suspects. Security is always a big hitter as is application integration. But the big one for this year looks like it could be ebusiness once again. it-analysis.com