Is NetApp concerned that Huawei and Xyratex have teamed up? If Huawei is using the same storage subsystem provider as NetApp how long will it be before Huawei introduces a very similar product to NetApp’s? Suppose that NetApp’s Gross Margins remain high, Huawei’s interest in the enterprise stroage market is logical from a business perspective, and in the long run may produce competition for NetApp equipment. How similar will the Huawei equipment be to NetApp’s DS14 series of storage shelves? It will be interesting to see what hits the market from this team.

Storage is a priority for Huawei, according to the company’s spokeswoman Lynn Zhou. “Both storage and security are recognized within Huawei as areas of strategic importance as [telecom] operators move towards an all-IP network environment,” she said in an email to Byte & Switch.

Certainly, Chinese technology giants have been fleshing out their storage strategies. Huawei, for example, was teamed up with 3Com, and also forged partnerships with FalconStor, Intransa, iVivity, and Xyratex.

The Chinese connection may also explain NetApp’s rush into Bangalore India to lower its cost structure.