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Tom Sweeney, President, CEO, and Chairman, ManagedStorage International: Page 6 of 11

Sweeney: In outsourcing storage infrastructure and operations, we see increase in the volume of customers moving either existing or new applications into data centers provided by hosting or managed service companies. That tells us 2004 should look better than 2003.

Byte and Switch: Which is growing faster, the service provider or enterprise space?

Sweeney: For us, because we're just kicking off the enterprise sales process in the last couple of months, we see more growth overall in service providers... But it will be 50/50 in terms of growth [with enterprise customers] by the end of the first quarter.

Byte and Switch: So aren't service providers extending themselves?

Sweeney: Yes, but not all of them have yet. There are still a number of service providers today who don't offer a fairly robust set of storage services. They're offering basic things on their own. Businesses want sophisticated services [and would like it if] more service providers had more services in the distribution channel.