Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: riposte who wrote (437)	11/11/1998 9:17:00 AM
From: DownSouth	Read Replies (1) \| Respond to of 10934

Steve, thanks for the posting about Fujitsu. This demonstrates that the management of NTAP is very forward thinking. For example, they have demonstrated with the Dell deal and now the Fujitsu deal that they are not stuck with the "direct sales" model. They are also solving the margin erosion problem (caused by more disk drive content) by selling the high-margin, proprietary part of their product (ONTAP software, NetCache software and custom-built mother-boards with margins well above 80%) to OEMs. The OEM, who has historically lower margins than NTAP already, builds the boxes by adding the drives, controllers, etc., resulting in a uplift of the OEM's revenues at traditional margins (say, 20-35%). I am sure we will see some more brilliant moves in the near future.