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Steven Murphy, President and CEO, Fujitsu Softek: Page 4 of 11

Byte and Switch: But isn't Fujitsu Softek really just providing software for Fujitsu Ltd.'s hardware platforms and selling open software under the guise of an independent company, to cash in on that market, as well?

Murphy: No. And the proof is in the pudding. Check out Gartner/Dataquest's latest data on which companies are best positioned to succeed in storage area management. For the first time, Softek appears on the "incumbent players" list alongside Veritas Software Corp. [Nasdaq: VRTS], BMC Software Inc. [NYSE: BMC], Computer Associates International [NYSE: CA], and IBM Tivoli. We are no longer in the emerging players group with InterSAN Inc., CreekPath Systems Inc., Prisa Networks Inc. [recently acquired by EMC; see EMC to Acquire Prisa, Finally], StorageNetworks Inc. [Nasdaq: STOR], Storability Inc., and the other startups.

Byte and Switch: Veritas is the 800-pound software gorilla here, right? How are you going to compete with this company?

Murphy: We are not going to lose any license revenue by reducing the number of servers in a given environment – this does not affect us. All stakeholders have a vested interest; if the promise of SANs comes through, there will be fewer Veritas licenses required. But we don't under estimate Veritas. It has a huge installed base and channel in place.

Byte and Switch: What are you doing on the channel side?