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

To: George Dawson who wrote (16582)	6/13/1998 8:53:00 PM
From: Patrick Sharkey	Respond to of 29386

George, EMC certainly is a tough competitor in storage, and I think that this will provide strong, very strong incentive for IBM storage to go in a direction other than that taken by EMC/McData.

To: George Dawson who wrote (16582)	6/14/1998 5:14:00 PM
From: Craig Stevenson	Respond to of 29386

George, Wow, it has taken a while to catch up on all the messages here. <<we have been posting for months that the McData switch was "Brocade inside". The only temporary lapse was when Craig posted that they were coming up with their ASIC.>> I don't think I ever said that McData was going to develop their own ASIC, just their own switch. (I am still surprised that Brocade was involved to the extent that they were, but looking back on it, it makes sense from McData's perspective.) I agree with you that this makes Brocade's hand even stronger than before, since McData won't be developing a competitive switch. Basically, this appears to be a Brocade OEM to me, and as such is indeed a troubling development, both from a technical and a marketing standpoint. Although I was out of the office all week, the charts show some alarming things. The sharp move down on Thursday, coupled with the HUGE volume have me very concerned. It may be margin calls and the like, but I don't know. I haven't heard any rumors of anything going sour, but it would be wise for everyone to be careful. The Asian crisis is certainly a concern, especially with Ancor's almost total dependence on Hucom. With Japan officially in recession, it seems likely that there will be SOME impact, even if we don't know the full extent. The only other possibilities that I can think of are something to do with the lawsuit, or maybe a lost OEM. This is all pure speculation on my part, though. I have no evidence one way or the other. I was doing some research on the IBM FC products, which interestingly require a Java 1.1 compatible browser. That is what brought me to Brocade's web site, to see what they were using to write their management software. I figured if Brocade WASN'T using Java, and Ancor WAS, that would open up the possibility of Ancor getting the IBM business. Unfortunately, Brocade appears to be using Java too. Maybe we are all just paranoid, but I'm being pretty careful. Craig