New England bound

I am going up to New England to visit with some of our customers for the next few days. The New England area has been a good area for our business for many years. At one time in 2000 our largest NetApp customer was based in Boston. They used to buy 760’s from us with 1TB of storage which filled a cabinet with FC9 shelves filled with 18GB drives. It is amazing how much has changed since then, now we are offering DS14 Shelves with 1 TB for $1000.00.

Over the next few weeks we will be traversing the country and going overseas also. All leading up to our customer conference in Reno in September. We only have a few openings left for this event, so if you want to join us , drop us a line.

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Is IBM’s XIV product aimed at NetApp?

According to an article in Computerworld the product does not match features with EMC, but what if IBM is testing the waters with XIV to see if it can slowly turn their N Series customers into XIV customers. IBM’s OEM version (N-series) of the NetApp Filers can’t be as profitable for them as selling their own products. And know that they understand how to sell into the Filer market space it would make sense for them to introduce their own product offering.

You can read IBM’s product announcement here

“The IBM XIV Storage System (2810-A14) provides the hardware platform required for the IBM XIV Storage System Software. The combination of hardware and software enables a revolutionary grid-based architecture designed to provide an exceptionally easy to use, high performance, scalable, reliable enterprise disk system for UNIX, Linux, Windows, and other supported distributed open server platforms. It can provide a platform to address the need for reducing complexity while keeping pace with midrange to high-end disk capacity demands. This system is a great addition to the IBM disk storage family, core products in the IBM Information Infrastructure. It is a good fit for clients who want to be able to grow capacity without managing multiple tiers of storage to increase performance and reduce cost. These users also may want to improve their backup capabilities, as well as reduce the task load on storage administrators. The XIV system is especially well suited as a consolidated utility storage for fast growing, dynamic mixed, and emerging workloads.
Statement of general direction

IBM intends to provide best practice configuration guidance, change management, asset awareness, capacity utilization, performance trending, and operational reporting capabilities via IBM TotalStorage® Productivity Center software support for the IBM XIV Storage System.

In addition, IBM intends to provide single sign-on capabilities for many IBM devices, including the IBM XIV Storage System and storage software applications that enable the administrator to use a single set of secure credentials to authenticate across all products via a single centralized point-of-control.

IBM plans, during the second half of 2008, to add support for XIV as a disk system managed by IBM System Storagetm SAN Volume Controller. This additional support will provide connectivity for XIV systems to the very broad range of operating system environments supported by SVC.

This statement of direction is based on Tivoli’s current development plans and is subject to change without prior notice.

All statements regarding IBM’s plans, directions, and intent are subject to change or withdrawal without notice. Any reliance on these statements of general direction is at the relying party’s sole risk and will not create liability or obligation for IBM.”

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NetApp quarterly profit rises, outlook disappoints

NetApp has hit a rough spot. They are increasing the size of their sales force but sales are not growing that fast yet and they risk alienating their reseller channel:

“They feel like if they can put more people on the street, they can gain a lot of market share,” said Pacific Growth Equities analyst Kaushik Roy. “The problem is, they’re not competing with the little Chinese vendors from Taiwan. They’re competing with the big guys… To gain market share from EMC (EMC.N: Quote, Profile, Research, Stock Buzz) and HP (HPQ.N: Quote, Profile, Research, Stock Buzz), it’s a struggle.”

Perhaps this explains why their reseller channel management is in disarray?

“In a surprise move, popular channel sales leader Leonard Iventosch suddenly left NetApp, where he’d worked for more than eight years. Company officials say it’s business as usual for partners while they search for a replacement.”

It may be getting hard to provide NetApp resellers incentives while they are simultaneously growing their internal sales force to put ‘feet on the street’.

For customers buying new equipment from NetApp this should mean that there is opportunities for negotiation between the competing sales channels. Why not get competing sales quotes from the NetApp, IBM and your reseller channel, which now includes CDW. If you are buying new equipment why not see how well competition works?

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Support costs poll

Are you considering Zerowait for NetApp filer or NetCache support?

Are you happy with your NetApp support costs?
Yes – NetApp support costs are affordable.
No – NetApp support costs too much.
I am considering Zerowait for our NetApp support
  
pollcode.com free polls
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Another trip to Dallas

I have been visiting customers for the last couple of days in the Dallas area, and last night 8 members of our customer family met for dinner at Del Friscos. We had a great time talking tech and trading ideas. It is always fun when we can get together with a group of customers so that they can meet each other and discuss their common network and storage problems. Last night we really had a great time.

As I write this, I am at DFW waiting for a flight back home. You can certainly learn a lot about bad customer service techniques at an airport. It seems that all the employees are unhappy and the customers are unhappy. The TSA lines and techniques are a fiasco. It does not look like there are any quick solutions to all the problems in the airline business, but it certainly makes me glad that I am a pilot and can fly to many places on my own without the hassles of airline travel. A few weeks ago I flew to Charlotte, Atlanta and St. Petersburg to visit clients. At every airport FBO the folks were happy to help arrange cars and hotel rooms. The difference is night and day in attitudes and customer service. Smaller companies just seem to give better service in the aviation busness, perhaps it is because they are service oriented?

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The Starbucks Effect

A few months ago people we saying that Starbucks would not suffer in tough economic times because folks will always have enough money for a luxury item like Coffee. But now we see that Starbucks is having a rough time of it because their customers are cutting back, causing a loss for the company.

In a conference call with analysts, Mr. Schultz said customers remain loyal, but “they’re visiting us less frequently as a result of economic pressures.” He said Starbucks will promote value for the fall and holiday seasons, though it will stop short of bundling products at discounted prices. “We’re not going to go down the fast-food lane,” Mr. Schultz said.

There seems to be a correlation between luxury coffee purchases and luxury storage purchases. Zerowait has seen a significant up-tick in our service and support business this year. Bigger companies are asking us to take over legacy support for their filers, and the installations we are providing support for are larger.

Is there a correlation between Starbucks coffee and NetApp storage? NetApp HQ is on Java Drive, and there are affordable alternatives available to Starbucks coffee and High priced NetApp storage support. Around here we go to Dunkin Donuts for Coffee, and even in Sunnyvale, CA customers come To Zerowait for NetApp support.

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Customers are getting tired of “NyetApp”

Over the last few weeks we have been hearing from a lot of companies who are getting really tired of their NetApp Sales Reps and engineers telling them they need to upgrade their systems. When customers ask to see how the new equipment compares to their old equipment the salesman talk about capacity and bigger drives. But many of the customers we speak to have not maxed out their current storage architecture, so why should they upgrade? Customers are saying “Nyet, not now” – and calling Zerowait looking for affordable storage expansion options for their filers.

When NetApp’s own engineers admit that a small percentage of files are accessed regularly, customers wonder why they need to upgrade their complete storage infrastructure? Why not just a little bit – the part that needs fast access? Our customers are saying Nyet to migrating all their storage to a new NetApp solution. At Zerowait we understand that budgets are tight. That is why we advise customers to upgrade just what they need now. Storage gets cheaper over time, why not wait until you need it.

Since NetApp’s own researchers are publishing that most files are ‘stale’ , why are their sales engineers telling current customers to buy new equipment? Is it the technology or the commission schedule that excites these folks? Should customers pay attention to NetApp’s researchers, or should they pay attention to the Sales teams? Currently many customers are confused and asking Zerowait’s engineers for honest answers to their storage questions.

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Goldman Sachs says ” ROI is the name of the game”

For many years our customers have been telling us that by using Zerowait for service and support of their NetApp equipment they can get a better Return on Investment (ROI) than they can get from the equipment OEM. And now it looks like a Goldman Sachs survey confirms the issue.

“ROI is the name of the game. CIOs have emphasized to us that they are buying on a need vs. want basis, are often downsizing deals to fit with current budget constraints, and are searching for solutions with a high and fast ROI,” the survey authors wrote.

The spending survey indicated CIOs see the “greatest potential for cost reduction in IT in the area of networking equipment.” A full 47% of the respondents said the most likely area where spending would be slowed would be on purchases of personal computer systems, servers and storage.

Spending cuts won’t be limited to equipment: 42% of the CIOs indicated that “they are reluctant to spend money on third-party professional services.” This is in keeping with the decline in interest for discretionary IT projects and could indicate more of a reliance on in-house IT employees.

The survey goes on to imply that the future of cloud computing is ‘Cloudy’

Cloud computing may get buzz, but it won’t get spend

The CIOs indicated that server virtualization and server consolidation are their No. 1 and No. 2 priorities. Following these two are cost-cutting, application integration, and data center consolidation. At the bottom of the list of IT priorities are grid computing, open-source software, content management and cloud computing (called on-demand/utility computing in the survey) — less than 2% of the respondents said cloud computing was a priority.

Charles King, an analyst at Pund-IT Inc., said that such hot-button technologies as cloud computing deployments may slow down. “The message here is CIOs are looking primarily to tested, well-understood technologies that can result in savings or increased business efficiencies whose support can be argued from a financial point of view,” he said.

One reason for the low priorities of grid computing, open-source software and cloud computing may be that CIOs and business executives don’t understand their value. “They require a technical understanding to get to their importance. I don’t think C-level executives and managers have that understanding,” King said.

When budgets get tight it makes sense to reevaluate where your company can cut costs without cutting quality. Zerowait provides an affordable alternative to companies that are ‘locked in’ to NetApp’s storage solutions but need a reliable vendor to provide support. High Availability service and support does not have to break your storage budget.

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Traveling

Last week I went to see some of our extended family of customers in the southeast. I visited customers in Charlotte, NC; Atlanta, GA; and St.Petersburg, FL. It is always great to get out of the office and meet with our customers. Each of the customers I visited, really likes the reliability of their NetApp equipment and appreciates our ability to help them meet their high availability storage requirements without breaking their IT budget.

One customer mentioned that we saved them almost $100,000.00 on support costs this year, without sacrificing any reliability. This customer recognizes that they are locked into NetApp’s storage architecture, they like NetApp reliability, but they can’t afford to buy their support from NetApp. Many customers that we support, continue to buy new NetApp equipment for their high performance requirements, and allow us to support their legacy equipment which needs to be reliably serviced.

Over lunch with another customer I was asked by the CIO if they could be a reference customer for Zerowait. I told the customer that I would really appreciate that.

We really have a great group of customers, and it is a lot of fun talking with them and learning how they use their NetApp storage, and how much they like working with our team at Zerowait.

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Another possibility for High Performance Storage

Researchers at the University of Pennsylvania are looking at an alternative to silicon SSD’s . It could create an interesting new niche market for high performance storage.

New Nanowire-Based Memory Could Beef Up Information Storage
by Laura Mgrdichian, Nanotechnology / Physics
A scanning electron microscope image of a cross section of a GeTeGesub2subSbsub2subTesub5sub nanowire (the arrow points to the Gesub2subSbsub2subTesub5sub core).
A scanning electron microscope image of a cross section of a GeTe/Ge2Sb2Te5 nanowire (the arrow points to the Ge2Sb2Te5 core).

Researchers from the University of Pennsylvania have created a type of nanowire-based information storage device that is capable of storing three bit values rather than the usual two—that is, “0,” “1,” and “2” instead of just “0” and “1.” This ability could lead to a new generation of high-capacity information storage for electronic devices.

“The use of nanowires to create electronic memory is advantageous for several reasons, but a non-binary form of nanowire memory like we have created could allow for a huge increase in the memory density of potential future devices,” said corresponding researcher Ritesh Agarwal, an assistant professor at the UPenn School of Engineering and Applied Science, to PhysOrg.com.

Conventional nanowire-based memory schemes have so far been binary, as is traditional transistor-based memory. In addition to affecting memory density, a non-binary nanowire-based type of memory would allow fewer nanowires to be used to achieve impressive storage capacity. This could allow electronic devices with memory—and that’s nearly all of them—to become more compact. Moreover, fewer nanowires to work with means that fabrication could be simpler.

The nanowires used by the UPenn group have a “core-shell” structure, like a coaxial cable, and consist of two phase-change materials. The core is made of germanium/antimony/tellurium compound Ge2Sb2Te5, while the cylindrical shell is made of germanium telluride (GeTe).

The phase changes are achieved by subjecting the nanowires to pulsed electric fields. This process heats the nanowires, altering the core and shell structure from crystalline (ordered) to amorphous (disordered). These two states correspond to two different electrical resistances: a low resistance for the case where both the core and shell are crystalline, and a high resistance when they are both amorphous. In turn, these resistances represent two of the three bit values.

The third value corresponds to the case where the core is amorphous while the shell is crystalline (or visa versa), resulting in an intermediate resistance.

Nanowires are excellent media for information storage, due to several factors. These include their often defect-free crystalline structures, which lead to superior behaviors that can be tuned by varying the nanowires’ dimensions, such as diameter, and other controllable properties.

Additionally, creating information storage from nanowires can be done via “bottom-up” approaches—using the natural tendency of tiny structures to self-assemble into larger structures—that may be able to break free of the limitations faced by traditional “top-down” methods, such as patterning a circuit onto a silicon wafer by depositing a nanowire thin film.

In future research, Agarwal and his colleagues plan to investigate how the nanowires’ size and chemical composition affects their electrical behavior, with the hope of finding new properties that could lead to electronic devices with novel features.

This work is described in the June 13, 2008, online edition of Nano Letters. “

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