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Don Beeler, CEO, President, and Chairman, NSI Software: Page 6 of 13

Customers buying something now need to ask, Is it going to meet the potential changes in the market? It's balancing: How much can I get for this and how much protection could it give me? In some cases, our product has the ability to give minutes-worth recovery, and once you install the system you can add more or less bandwidth.

Byte and Switch: Are customers buying more of your software with servers or with NAS boxes? [Ed. note: NSI Software products are bundled with Dell servers and NAS boxes, and with HP Windows-based NAS boxes.]

Beeler: It depends on the NAS box. Servers have more CPUs and more memory. Two servers give most flexibility. The question is, how long do you want to plan to be on the second system in failover? We rename server B and allow it to look like Server A if Server A fails. Most people say, "I'll put a slower system in for something I'll be at just a short while."

It's interesting... When you're using only tape, you pay just for that tape backup. But if the server were to fail, you now have to get a new server to restore what's on the tape. The number of people who just don't think about that is interesting. They assume they have tape backup, and that's enough. Then there's failure, and they're suddenly faced with the need for a new server.

The server typically won't come in the same day. What position do you want to put your company in? If you have no second server ready to go, your ability to recover data will be affected. We're helping people say that for a couple of licenses of Double-Take, I can afford [to replace tape with] a new server.