There is a very interesting article in Business week about NetApp, that is worth reading.

Here is the link – http://www.businessweek.com/technology/content/dec2005/tc20051227_204146.htm

I think the following pieces are very interesting.

Indeed, NetApp has gone on to dominate the red-hot market for so-called network attach storage (NAS) gear — and in the process create the only significant new hardware company of the last 15 years. NetApp is not only notching hefty sales (expected to hit $2 billion in fiscal 2006) but it has also managed to maintain sky-high 60%-plus gross margins, despite building its gear with commodity, off-the-shelf parts. And it has done it all while brushing off offensives from far larger companies, such as Microsoft (MSFT) and EMC (EMC), which many felt sure would mark NetApp’s doom.

While Cisco designs many of its own network processors, NetApp’s hardware uses chips from Intel and others. “We’re state-of-the-shelf, not state-of-the-art,” he says.

The article does not ever state what NetApp’s CEO thinks of creating long term customer relationships, the article never discusses NetApp’s sales strategy of End of Lifing products to force customer upgrades.