To: John B. Wilson who wrote (6406 ) 5/13/1999 1:42:00 PM From: mpnunes Read Replies (1) | Respond to
John: Isn't this old news? The announcement re the HP thing was made last week, and EMC immediately responded by saying that it will not affect 99 revenue targets. Also, the more I read about this, the more I think it is a good thing for EMC. According to the article that you just pointed out, "Aberdeen anticipates that EMC will react immediately to today's announcement by selling directly in competition to HP and attempting to wrest account control in customer sites that have already purchased Symmetrix products from HP." If you ask me, HP should be very concerned about this, as Ruettgers' cut throat management style has gotten the company to where it is today (read the March Business Week article about EMC). Management as good as EMC's will not let this HP issue get in the company's way. EMC has proven itself as the Gorilla, and HP/Hitachi will be at a considerable disadvantage if it decides to compete head on against EMC in the market. Also, if you think about the potential of EMC in the market, I really don't see why anyone is concerned about the company. The need for storage space will undoubtedly grow in tandum with INternet growth. I have no doubt that EMC will continue its position as market leader in this high growth space, as they have a proven, aggresive management team, and 30% to 35% growth for the next two years does not to me seem unrealistic. The article you pointed out also had these intersting comments: "But let there be no doubt that HP is taking a major risk with this bold action.
