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

To: Patrick Sharkey who wrote (17058)	7/7/1998 11:16:00 PM
From: Craig Stevenson	Respond to of 29386

Pat, Quoted switch prices often do not include the optics, so the base switch cost per port is much less. Notice the wording in the StorageTek press release about the switch being fully configured. I take that to mean "with optics". I am NOT one of those who believe that the sole reason Brocade appears to be winning these OEMs is that they are price cutting. I think their revenue stream gives them that option, to a certain extent, but they are undoubtedly spending as much or more money on research and development as Ancor. Given their lower integration levels, it seems to me that their pricing power is somewhat limited. I think there are other reasons why Ancor apparently can't compete effectively against Brocade. I'm not sure exactly what those reasons are, but I suspect it is a combination of technical, geographical, and political factors. I also suspect that there are some features missing from the present MKII (hardware and/or software) that have made it more difficult to sell into the storage OEM market. Craig