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

To: Mohan Marette who wrote (1033)	6/2/1999 11:24:00 AM
From: Mehitabel	Read Replies (1) \| Respond to of 10934

Mohan-- great IDC report on NAS market, and ntap has 40% share ------------------------> >>Vast and Profitable Opportunities Exist in the Worldwide Network Attached Storage Market Network Appliance Has Firm Grip on Market-Leading Position FRAMINGHAM, Mass., June 1, 1999 - Opportunity in the market for direct network attached storage (NAS) is poised to explode. This is the message of a special report newly released from International Data Corporation (IDC) titled 1999 Worldwide Disk-Based Network Attached Storage Market Opportunity. Revenues in this market will skyrocket from $540m in 1998 to an astounding $5.1B by 2003 - growth of almost 54% per year. "Recent buzz has focused on storage area networks (SAN), and network attached storage has been almost entirely overlooked. However, network attached storage is equally compelling," said Robert Gray, research director for IDC's Worldwide Storage Systems research. "The forces for NAS - the size of the desktop data explosion, the value of client data, and the demand for data security in the client LAN space - are equal to the data center forces fueling storage area networks." According to IDC, market development will accelerate in late 1999 as first-tier server, disk drive, and networking suppliers enter the NAS market. IDC divides the overall NAS market into five price bands: less than $1,000, $1,000-5,999, $6,000-24,999, $25,000-100,000, and more than $100,000. The fastest revenue growth will occur in the $6,000-$24,999 segment in the forecast period. This segment's revenue growth will be almost twice as fast as that of the overall market. Despite the NAS market's strong revenue growth in 1998, all vendors did not fare well. In fact, several were forced out of the market. "Low-end NAS system suppliers struggled with product, volume, and access-to-market issues," Gray said. "The strong revenue growth in 1998 was for products with average sales value above $25,000." Network Appliance, Inc. dominated the market with more than 40% of total revenues in 1998. "Network Appliance has been very successful with end users in the Internet service provider industry, specifically with America Online," Gray said. "The company has also rapidly developed a position in the transparent Web caching market with its dedicated WebCache Appliance product." Network Appliance's nearest competitor was Auspex, with 21% of the market revenue share.