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

To: George Dawson who wrote (16749)	6/21/1998 11:41:00 AM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

George, The possibility that Arcxel's switch is preferable to Ancor's is probably the most troubling aspect of this whole thing. At least as far as we know, the Arcxel switch is less advanced (due to lower integration levels), less reliable (due again to lower integration levels), and more expensive than the MKII. Either Arcxel has a switch that we know nothing about, or there is something else behind what appear to be some Ancor OEM losses. I agree that cascading is less desirable than multi-staging, but this is a moot point until systems scale to the point of needing it. Another possibility that we often overlook on the pricing issue is that Brocade has something that Ancor doesn't. Volume! They may be able to compete more effectively than we thought, due to the volume they are generating from Sequent. This should help them get better pricing on their parts and manufacturing. Ancor's higher level of integration helps mitigate this advantage somewhat, but perhaps it isn't enough. (Arcxel would not seem to have an advantage in this area at this point, though, which makes their inclusion as a real contender even more problematic.) Craig