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  • itsallaboutgrowth itsallaboutgrowth Dec 13, 2011 11:52 AM Flag

    JUST SELL THE COMPANY

    Yes, NTAP can offer a complete solution set by reselling QTM, but it's a silly gamble for the long term. EMC or any other competitor to NTAP could easily make an offer for QTM at any moment just to force NTAP to out-bid with a hefty premium, or NTAP would risk quickly losing their ability to offer a solid complete solution set for at least 3 years afterwards. Imagine how many cutomers NTAP could lose?! On the other side, the competitors must expect that NTAP is gaining valuable knowledge by reselling QTM products that they might apply (or be applying) to another internal development effort. How long will NTAP competitors let that go on before forcing the issue sooner than NTAP wants? Bottom line: There's another game of chicken on the horizon soon for NTAP unless they take control of the situation.

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    • Whenever I read this stuff about NTAP needing a 'complete solution set' in trade articles I keep reading to see what is supposedly missing. And I never find it. No one describes what this 'set' is. That's when I figure that the article is just written to keep the paycheck coming.

      EMC would not make a competing offer for QTM. They already bought Data Domain and have made that dedup busines into $1B. EMC isn't worried about QTM. As a matter of fact, EMC kicked QTM to the curb to buy Data Domain. If EMC did buy QTM, EMC would close QTM down. Then NTAP would pick up the pieces. So there would be no point in EMC buying QTM.

      NTAP isn't gaining any valuable knowledge by reselling StorNext. And dedup is something NTAP had already been selling through FalconStor (which NTAP dropped). I would have to say that NTAP hasn't bought QTM because NTAP doesn't think it would grow their customer base or revenue or profits enought to warrant the cost. Remember, more than 50% of QTM revenue comes from tape, not disk and not StorNext.

 
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