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

To: Sam who wrote (4657)	11/4/2002 3:03:38 AM
From: Gus	Respond to of 4808

....while at a minimum we are showing license revenue growth BS. I'm surprised B&S didn't challenge him on that point. EMC vs VRTS New License Revenues Only Last 7 Quarters EMC VRTS 1Q2001 $468M $309M 2Q2001 498M 294M 3Q2001 243M 240M 4Q2001 352M 268M 1Q2002 282M 260M 2Q2002 321M 242M 3Q2002 284M 241M 4Q2002 - - So where is the vision? The simplistic Hardware vs Software distinction was popular during the bubble, but buyers are starting to rebel at hardware and software that don't work very well together. VRTS is shut out of the mainframe storage market and its growth prospects in the Wintel platform are limited. It's main driver of growth is the Unix platform and its primary platform (Solaris) is currently under siege. For example, Sun recently disclosed that its LSC file and volume management system now ships on more than 20% of its systems. Operating system vendors have traditionally controlled the volume manager and file system. This appears to be the norm in the NT/W2K and mainframe markets which are both controlled by monopolies. Veritas' 70% share of the $250M layered volume manager and file system market is actually an anomaly and a direct result of the way Sun got careless during its rapid rise to the top of the Unix market. HP was the top Unix vendor during the first half of the 90s. More than 50% of the world's most important corporate data still reside in mainframe environments. In a typical large corporation, approximately 55% of the raw disk drive capacity can be found in Wintel desktops and entry-level servers. I think that Veritas is still trying too hard to do everything with host-based software. Look at the way its NAS product continues to flounder. NAS derives its efficiency by integrating an embedded OS with the storage hardware. Veritas has decent file system technology, but yet no major OEM has picked up its NAS software. Look also at the way its replication products have less than 1% of the market. Replication is an important technology because it enables data migration functions that enable higher levels of automation inside the box and on the storage network, but nobody is buying the Veritas vision of trying to do everything from host-based software while every turn of process geometry provides an economical opportunity to rebalance the basic computing, storage and communications functions inside the box and outside the box, over hardware, firmware and software.