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Compaq Gains on Virtualization: Page 4 of 4

Nevertheless, Wall Street likes the sound of it.

”We are most bullish on Compaq’s storage strategy with its VersaStor technology,” said Thomas Kraemer, Merrill Lynch & Co. Inc.’s, chief storage analyst during his report on the storage market this week (see Merrill Lynch Sizes Up Network Storage).

Gartner/Dataquest market share numbers released today put Compaq as the number one supplier of storage area networks, based on 2000 sales. The research firm reports that with more than 24,000 units shipped last year, Compaq sold more SAN-attached storage systems than its six nearest competitors combined, accounting for a 48.5 percent market share.

The real fuss, of course, is over the amount of money resting on this market. Morgan Keegan & Company Inc., a financial investment firm, expects the SAN virtualization software market to exceed $1 billion by 2003.

— Jo Maitland, Senior Editor, Byte and Switch