Another holiday weekend of catching up.

Reading the reports of NetApp’s sales problems you would think that the storage industy was in a slump. But Zerowait’s service and support contracts for NetApp legacy equipment continue to grow. There are a number of reasons for this, but most of them come down to an analysis by each individual customer that buying new NetApp equipment can’t be price justified by the nominal increase in storage performance that buying new equipment from NetApp will provide them.

Additionally, many NetApp Nearstore (R100, R150, R200) customers are coming to Zerowait for service and support because NetApp’s support prices are so high.

So when stock analysts say things like this:

“Though we subscribe to NetApp’s macro-economic commentary, and our checks do coincide with company comments that an upward trend took place in April, we believe competitors will question whether competitive headwinds are incrementally surfacing for NetApp,” said A.G. Edwards analyst Aaron Rakers, in a guidance note released today.

From our viewpoint the problems with NetApp’s hardware sales have more to do with a lack of innovation and performance to justify the cost of their new equipment. Customers may be asking ” Why not just keep the old equipment running and invest our money in our engineering staff” The enterprise storage market continues to commoditize, can NetApp compete in this market over the long term? Only time will tell.

Unlike NetApp, our business is booming & and our future is brilliant, so we will be catching up this weekend!