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

To: Ken Richard who wrote (16857)	6/28/1998 1:05:00 AM
From: Joe Wagner	Read Replies (1) \| Respond to of 29386

It seems logical to me that Ancor is using all of the feedback from OEMs to develop an improved version of the MKII that will eventually come out, and the reason they say very little about it is they don't want any competitors to have the benefit of this information to incorporate it in their own switch. Since technically Ancor is very advanced in Fibre Channel, it makes since that with the passage of time their engineers would make further progress in switch technology. So my conclusion is that their technology is far from being fatally flawed and will be further refined until it starts snagging some OEMs. The odds of not getting any OEMs seems statistically too high. Its a wild ride but I've been on wilder ones like USWDA ( $9 to $.12 to 9$, currently at $4). Joe W.

To: Ken Richard who wrote (16857)	6/28/1998 9:00:00 AM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

Ken, <<I guess I was unaware that Brocade had a class 1 switch first.>> You are correct on this point, but as evidenced by the answer to my question regarding Class 1 during the last conference call, Class 1 is becoming less desirable, hence less of an advantage for Ancor. Apparently, customers are NOT clamoring for Class 1 switches, at least not yet. What I am talking about are things like an 8-port or 64-port switch, killer management software, nameserver support, public/private loop, 2K buffers, modular design, FC to GE bridge, etc. Granted, many of these issues have been, or will be addressed, but not in as timely a manner as I would like. As others have pointed out, the MKII has been available for about a year, although not in shipping quantities until about 6 months ago. In my opinion, given the amount of time and money that went into the design of the switch, there is no excuse for the failure to incorporate some of these features in the original design. Anticipating what the market wants, and delivering a product that meets those needs AHEAD of the competition is what makes a successful company. Being slow to recognize the market, and slow to respond is at least partially responsible for a $3 stock price. Brocade CORRECTLY assessed the Fibre Channel market, and delivered a product that adequately met the needs of the majority of customers in that market. It wasn't THAT long ago that many of us, including me, didn't think the SilkWorm could compete with the MKII because it lacked Class 1 and Intermix support. Who turned out to be right on that one, Ancor or Brocade? I won't quibble with the qualifications of the Ancor ASIC design team, but there is more to it than that. Ancor must offer a SOLUTION for customers, not just a switch. In order to provide that solution, they must anticipate IN ADVANCE the needs of their customers, and deliver a product set that meets those needs. Because of Brocade's substantially greater revenue stream, they will be in a much better position to respond to customer needs in a timely manner. Ancor will be forced to play catch up, until that situation changes. Craig