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Don Beeler, CEO, President, and Chairman, NSI Software: Page 4 of 13

Byte and Switch: So what specific market segments are you addressing?

Beeler: There are really four markets in general – enterprise, large, medium, and small companies. We're focused on the large and medium-sized firms, the mid-tier. That's where companies like HP and Dell [both NSI Software resellers] also see most growth. Of course, we sell into the other two markets as well, but we see the biggest uptick in the mid-tier.

Byte and Switch: What are some of the other key trends you see in the market?

Beeler: From a trend standpoint, "How fast can you back up?" went from how fast the drive can go to grouping drives together... The next natural trend – and we're already seeing it – is disk-to-disk backup. The other piece is recoverability.

Recoverability is more of an issue than speed. The issue is how fast applications can come back up, and subsets of that. We used to get caught up in buzzwords... In reality, the customer just wants applications back up and running in two hours.