Are Containers a Strategic Advantage for Rackable?

Canaccord Adams upgrades Rackable Systems (NASDAQ: RACK) from hold to buy based on container sales opportunity to Microsoft, Yahoo, Amazon, Facebook.

Canaccord Adams upgrades Rackable Systems (Nasdaq: RACK) from Hold to Buy with a $12.20 price target.
Analyst Mark Kelleher said, "We are upgrading RACK shares to BUY from Hold as we believe Rackable's container business will become a key growth driver for the company. We believe that adoption of modular data centers by Internet-based companies such as Microsoft and Yahoo will provide Rackable a differentiated product, and a path to top-line growth. We believe Rackable will meet our expectations for Q1 and will be able to attain its guidance for F2008. Additionally, we are raising our F2009 estimates given our growing confidence in Rackable’s opportunity for container sales at its top customers (Microsoft, Yahoo, Amazon, Facebook) and other potential adopters." [LJ]

This is kind of scary to think that an analyst figures Rackable will be able to grab server sales based on a container strategy. I wonder if Rackable will paint every container with a bright logo to advertise what is in each container? If they do, can Rackable apply for co-advertising dollars for Intel Inside.

thanks again to data center knowledge for their post getting my attention.

Comments

[John Smith]

Rackable containers are boring grey or blue. At least they didn't pick black like Sun.

Tops are white or grey too:

http://maps.google.com/maps?f=q&hl=en&geocode=&q=N+Mathilda+Ave,+Sunnyvale,+Santa+Clara,+California,+United+States&sll=37.415015,-122.024399&sspn=0.000946,0.002114&ie=UTF8&ll=37.415553,-122.023655&spn=0.000946,0.002114&t=h&z=20&iwloc=addr