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To: Neil S who wrote (13498)	1/6/1998 1:36:00 PM
From: Craig Stevenson	Respond to of 29386

Neil, <<Does the relationship between Switches and Hubs [in the Morgan Keegan reference] seem counter intuitive to you ?>> Yes. I would have thought hubs would garner a much greater share of revenues, despite their lower cost, due to higher volume. In fact, I would find the numbers more believable if they were reversed. Like you, I would like to hear Roy's take. The only possibility that I can think of to support the discrepancy is that Fibre Channel switches will be rolled out in volume in 1998 at the high end. Hubs will probably catch up in 1999, as Fibre Channel moves toward the lower end of systems. (Pure speculation on my part. Roy would be in a much better position to provide a definitive answer.) Craig

To: Neil S who wrote (13498)	1/6/1998 1:48:00 PM
From: George Dawson	Respond to of 29386

Neil, Actually they may have the hub figure right, but I think they have overestimated the switch market. I think you could make a pretty good argument for the current hub figure based on known announcements. By the way, I would be very happy if their switch estimate is correct. George D.

To: Neil S who wrote (13498)	1/6/1998 2:27:00 PM
From: Roy Sardina	Read Replies (2) \| Respond to of 29386

The total market numbers seem high to me. Realistically the price of Hubs is going to be around $500/port (optical) and the price of switch ports is going to be $2500-3000 (optical) you'd have to sell ALOT of ports to hit billion dollar sales numbers. The real anser is how many times is a port counted? If BCSI OEMS to Sequent and then that switch is resld. The question asked is: How much revenue does Brocade report for the Slae and how much does Sequent report. This double counting adds up real quick in an OEM word. The storage business is notorious for this. Seagate says how much they ship, then compaq says they have a $1B storage business, and Sun says they have a $1B+ business and they all are reselling the same Seagate drive already accounted for (albeit at OEM pricing/discounts) Is there a $7B market, only if you count the cables, electricity used to run the FC stuff. Roy