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

To: George Dawson who wrote (4727)	9/4/2003 4:18:45 PM
From: Gus	Read Replies (1) \| Respond to of 4808

That's true, George, FC valuations got overheated so fast that it's been a relentless slide down since early 2001 when CMNT first warned of SAN-related project pushouts. We have also seen the switch vendors and the HBA vendors swap leadership roles (in terms of valuation) during this downturn with Q-Logic now leading and Brocade lagging the narrow field. My point is that now that SANs are entering the mainstream corporate market, the OEMs appear to be ready to support another HBA player to bring down HBA pricing especially since it appears that the Agilent dog won't hunt. Look at the way they are using Cisco to bring down Brocade and McData prices. Cisco was forced to drop prices by 35% during the most recent quarter and that forced Brocade and McData to respond! The oligopolistic disk drive supply chain has actually outperformed the oligopolistic switch & HBA supply chain during this stretch and may continue to do so until the switch and HBA vendors settle into Big 3 valuation dynamics.