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A Market of Contradiction

Storage networking is a highly volatile space, where seemingly contradictory forces blur the financial picture.

The month of May has barely begun, for instance, yet we've been hit with the following news:

All that unfolded against a backdrop of reduced revenue reports from big players and reduced investment in startups. (See Storage Financials Take a Dip and Storage '06 Funding Down.) Which raises the question: What kind of market is this, where combinations and consolidation proceed so briskly despite a touch of sluggishness in user spending?

There's no easy answer. But storage networking is clearly a landscape where suppliers who can't chart the terrain fail to gain the considerable ground that's open for staking.

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