Data Storage Becomes Hot Sector in Wake of September 11th Terrorist Attacks, RBC Capital Markets Survey Shows

Business Wire, Jan 10, 2002

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 10, 2002

In the wake of the September 11th terrorist attacks, protecting data through the use of system area networks (SANs) has become one of the most important priorities for U.S. corporations, according to a survey by RBC Capital Markets and the Computing Technology Industry Association (CompTIA).

Approximately half of the companies with over $1 billion in revenue reported to have deployed a SAN to protect and store data, the survey found. This compares to a 2000 survey that found only 16.2 percent of large companies had deployed a SAN. And small to mid-tier companies are quickly moving to embrace the technology, the survey showed.

SANs allow companies to easily and efficiently store key data in secure off-site facilities. Prior to Sept. 11th, the issue was not a top priority for every company.

"The September 11th terrorist attacks woke up a lot of companies to this issue," said Robert Montague, research analyst for RBC Capital Markets in Memphis, Tenn. "The result is that this area is one of the hottest sectors of technology. We are seeing even small and mid-tier companies employing SANs to protect vital corporate information."

The survey of 73 companies providing SAN services to companies revealed the emergence of the small and mid-tier level as an important new market for SAN and storage vendors. "The survey showed there is a significant opportunity for companies with the foresight to develop products and services that meet the needs of this segment," Montague said.

The survey by RBC Capital Markets and the CompTIA was conducted of SAN providers across the U.S. late last year.

RBC Capital Markets will hold a SAN conference in New York City Jan. 10-11, 2002. More than 50 leading public and private companies will be presenting their unique point of view on emerging technologies and trends in the system networking industry. The conference will have panel discussions that will include the involvement of several valued channel and end-user contacts.

"Many investors expected SANs to be a good opportunity in the large enterprise space," Montague said. "The amount of spillover to smaller enterprises is somewhat surprising. We have a clear indication that that is the next leg of growth."

For a copy of the report, contact Kevin Foster at Starkman & Associates, 212-252-0633.

About RBC Capital Markets

RBC Capital Markets offers world-class expertise and a global reach in its chosen products, markets and industry sectors through five business divisions and 3,000 employees including some 80 analysts covering more than 900 companies. It is a member of RBC Financial Group, the seventh-largest bank by assets in North America. RBC Capital Markets is the global brand name for the corporate and investment banking divisions of Royal Bank of Canada and its affiliates, including the equity capital markets division of RBC Dain Rauscher Inc., member NYSE and SIPC.

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