NetApp says that IBM’s branded sales are just incremental.

Tom Mendoza, president of NetApp, said that improving sales through IBM is not affecting NetApp’s solution providers. “IBM is very focused on what I call white space, which is where we are not covered,” Mendoza said. “For example, state and local government, and retail. So it’s largely incremental for us. They’ve done an excellent job of minimizing conflicts by focusing on where we are not.”

The article linked below says that IBM is 3% 0f Netapp sales. 3% of sales seems like a big increment to me… Do the math $2,000,000,000.00 in NetApp Sales * 3% = $60,000,000.00

The OEM deal with IBM accounted for almost 3% of NetApp’s revenue during the quarter, reflecting a relationship that NetApp claimed is going better than expected.

I have to wonder how much NetApp’s big resellers are pushing out the door if IBM sales are only incremental? Could there be some perspective or marketing spin issues in play? How much longer will NetApp support this small incremental sales channel?

The word in the street since the announcement last spring by IBM that it would be reselling a portion of NetApp’s product line has been at best hushed and at worst that it’s a disaster. I heard that there were channel conflicts all over the place and that field compensation hadn’t been worked out to a point where the two could work together.

I’ll bet Larry King can find out the answers…

Talk-show host Larry King and his wife, Shawn Southwick, have agreed to buy a Beverly Hills home listed for just under $12 million.

The five-bedroom, Tuscan-style home was on the market less than two weeks before the couple agreed to buy it. The almost 10,000-square-foot house, built in 1989, has a skylit foyer and a master suite with a sitting room and twin bathrooms. There is also a two-bedroom guest house and a pool. Local agents identified Mr. King as the buyer. Listing agent Stephen Resnick of Westside Estate Agency confirmed that a contract has been signed, with the deal set to close later this month.

Mr. Resnick wouldn’t name the sellers but said they spent two years renovating the house. Records show the sellers are Thomas and Kathy Mendoza, who bought the home three years ago. Thomas Mendoza is president of Network Appliance, a Sunnyvale, Calif., data-storage company.

The King and Mendoza families declined to comment. Mr. King, 73 years old, is the longtime host of the CNN talk show “Larry King Live.” Ms. Southwick, 47, is a former host of the television show “Hollywood Insider.”

You just can’t make this stuff up !

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