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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: KJ. Moy who wrote (14676)	2/24/1998 12:57:00 PM
From: Craig Stevenson	Read Replies (2) \| Respond to of 29386

KJ, I agree that Vixel couldn't have paid too much for Arcxel, due to their lack of sales, startup status, etc., but it would still be VERY interesting to know what the price tag was. <g> There are several reasons why I think Ancor should offer a hub in addition to their switch(es). One is simply to increase the mind-share and market presence of the Ancor name. Another is that hubs allow Ancor to penetrate potential markets that may scale to switches at a later time. The third reason is economies of scale. The more switches that Ancor sells, the less their per port cost, and the more competitive they will be in the marketplace. By leveraging the middle of the FC market, Ancor can sell more switches. Initially, I think many Fibre Channel adopters will attempt to put too many devices on a single loop, compromising performance. Hubs will be used to connect and isolate these devices, saving precious switch ports. I see Fibre Channel hubs and switches being used in the same manner that Ethernet hubs and switches are used. Craig