The same transformation is sweeping through companies that make flash memory, a smaller and cheaper form of memory that's used in digital cameras. I think we're headed to a world that puts localized storage everywhere so that consumers can reformat content and then store that personalized content near at hand.
In flash memory, companies to check out are SanDisk (SNDK - Get Report) and Korea's Samsung Electronics (SSNLF), which has clearly taken the flash memory momentum away from Intel. In these two groups, I prefer Western Digital and SanDisk on valuation and corporate governance issues.
The Next Generation of the Internet
Someday soon we may know who actually won the competition to build the major pieces of the precursor to the next generation of the Internet. Just as the current Internet grew out of a government network built for the Defense Department's advanced research arm, the next generation, officially the Global Information Grid Bandwidth Expansion project, is being built for the Defense Information Systems Agency with an equipment budget of about $900 million over two years.A contract of that size would itself be a prize to struggling equipment makers such as Sycamore Networks (SCMR - Get Report) and Ciena (CIEN) among the contract winners. Of these, I like Cisco and Sycamore Networks.