Did you ever think that making a speech on economics is a lot like pissing down your leg? It seems hot to you, but it never does to anyone else. Lyndon B. Johnson

The same can be said for storage economics – According to Robin Harris :
In storage, the capacity illusion reigns supreme. We measure storage utilization by looking at capacity in gigabytes, which, as Hu points out, is the cheapest part of storage. The expensive storage component is I/O. And the expensive management component is people.

And while the main stream computer press simply recites whatever it is that the vendors are flogging this week, it takes some detective work for customers to find out how to get the most economical return for their storage investment. However, NetApp customers recognize that Zerowait provides high quality third party service and support for their legacy filers. And as we grow our European business many more customers are discovering the logic of purchasing transferable licensed filers. It does not take much effort to look at the price point of a new NetApp filer, compare it to a transferable licensed FAS980 and see that you can get a lot of storage and save a lot of money with a 980 and 336 spindles.

Storage economics – it is a term that will become more well known over the next few years.

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On Thursday and Friday I went on a few customer visits and I decided to drive. Leaving Newark,DE on Thursday morning at 5:15 AM I stopped at the Dunkin Donuts and got some coffee and a breakfast sandwich. I drove up the NJ TPKE and crossed the George Washington Bridge with hardly any traffic nightmares. I hit the Cross Bronx Expressway and ran into a small tie up. Going into CT was really no problem, and I made it to New Haven with a lot of time to spare. I had lunch with a customer and continued on up to Hartford and into the Boston suburbs for another appoinment. The calm before the traffic storm!

On Friday, I had two appoinments and left Boston around noon. I got on 95 south and ran into a traffic tie up, when it cleared I ran into a three hour mess between New Haven and the Housatonic river. I decided to spend the night with friends near Bridgeport after this nightmarish delay. Saturday morning I ran into traffic around Stamford, CT and of course on the Cross Bronx EXPY it was a mess. I got across the George Washington Bridge and ran into an hour delay at exit 8 ( Freehold, NJ) After that tie up it was clear until the 896 exit in Newark, DE .

I hit a traffic jam on every highway and in every state I went through returning home. Can you imagine if your network worked that poorly? Would you deal with a company that created havoc in every part of every transaction you made with it. Of course not! Why don’t state highway administrations treat us as customers? Why do they do major road work in the middle of the day? In our company all major network changes have to occur when the office is closed or lightly staffed. I wonder when the folks in charge of roadwork will discover the concept of doing major work when it will impact business the least? Maybe they can post some detour signs?

I wonder how much it costs our economy to have the Northeast a traffic nightmare? And I know that in every region of the country I drive in I run into traffic nighmares. Does anyone in Government care? If Government can’t maintain & fix the roads why are we paying high gas taxes and tolls?

Let’s fix the roads in this country!

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Economics explained through cows.

My cousin Clive ,who lives in England, sent me a joke which I thought applied to the storage business perfectly. I only added one section at the end . I hope you enjoy it.

SOCIALISM:

You have 2 cows, and you give one to your neighbour.

COMMUNISM:

You have 2 cows. The State takes both and gives you some milk.

FASCISM:

You have 2 cows. The State takes both and sells you some milk.

NAZISM:

You have 2 cows. The State takes both and shoots you.

BUREAUCRATISM:

You have 2 cows. The State takes both, shoots one, milks the other,
then throws the milk away…

TRADITIONAL CAPITALISM:

You have two cows. You sell one and buy a bull. Your herd multiplies,

and the economy grows. You sell them and retire on the income.

AN AMERICAN CORPORATION:

You have two cows. You sell one, and force the other to produce the
milk of four cows. Later, you hire a consultant to analyze why the cow has dropped dead.

A FRENCH CORPORATION:

You have two cows. You go on strike, organise a riot, and block the

roads, because you want three cows.

A JAPANESE CORPORATION:

You have two cows. You redesign them so they are one-tenth the size
of an ordinary cow and produce twenty times the milk. You then create a
clever cow cartoon image called Cowkimon and market it worldwide.

A GERMAN CORPORATION:

You have two cows. You re-engineer them so they live for 100 years,
eat once a month, and milk themselves.

AN ITALIAN CORPORATION:

You have two cows, but you don’t know where they are. You decide to
have lunch.

A RUSSIAN CORPORATION:

You have two cows. You count them and learn you have five cows. You

count them again and learn you have 42 cows. You count them again and

learn you have 2 cows. You stop counting cows and open another bottle
of vodka.

A SWISS CORPORATION:

You have 5000 cows. None of them belong to you. You charge the owners

for storing them.

A CHINESE CORPORATION:

You have two cows. You have 300 people milking them. You claim that
you have full employment, and high bovine productivity, and arrest the
newsman who reported the real situation.

AN INDIAN CORPORATION:

You have two cows. You worship them.

A BRITISH CORPORATION:

You have two cows. Both are mad.

IRAQI CORPORATION:

Everyone thinks you have lots of cows. You tell them that you have
none. No-one believes you, so they bomb the **** out of you and invade your
country. You still have no cows, but at least now you are part of a
Democracy….

SURREALISM:

You have two giraffes. The government requires you to take harmonica

lessons

HONG KONG CAPITALISM:

You have two cows. You sell 3 of them to your publicly listed
company, using letters of credit opened by your brother-in-law at the bank.
Then you execute a debt/equity swap with an associated general offer so
that you get all 4 cows back, with a tax deduction for keeping 5 cows. The
milk rights of 6 cows are transferred via a Panamanian intermediary
to a Cayman Islandscompany secretly owned by the majority shareholder. He
sells the rights to all 7 cows’ milk back to the listed company, and
proceeds from the sale are deferred. The annual report says that the
company owns 8 cows, with an option on one more. Meanwhile, you kill
the 2 cows because the feng shui is bad.

NEW ZEALAND CORPORATION:

You have two cows. The one on the left looks very attractive.

AUSTRALIAN CORPORATION:

You have two cows. Business seems pretty good. You close the office
and go for a few beers to celebrate.

Storage vendor

You purchased a new milking machine for high reliability and the expected growth of your milking operation which currently consists of two cows. The hardware vendor cancels software and hardware support for the milking machine and requires you to purchase new hardware and software. They tell you that the new software and hardware provides higher availability than the older versions did. When you install the hardware you notice that the only difference is the Bezel and the debt you have incurred. The day after your upgrade is complete the salesman stops by and tells you that the hardware has been superseded by a newer version and you need to upgrade. The salesman is driving a brand new BMW 700 series.

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A purchase that makes sense.

Typcially – the news from Silly Con Valley storage companies makes little sense but this one seems to have some logic behind it. If HDS pulls it off, I think in a few years NetApp will see some serious competition.

Meanwhile, HDS is also said to be working through the due diligence process to acquire high-end network attached storage (NAS) supplier, BlueArc Inc. Neither company would confirm nor deny the rumor. A former BlueArc employee, who preferred to remain anonymous, said that there were discussions with HDS two to three years ago, but they didn’t go anywhere. “The company’s under new management now and it would be a logical move,” he said.

But what happened to the love NetApp and HDS used to share?
Hitachi Data Systems Corp. (HDS), Santa Clara, Calif., and Network Appliance Inc. (NetApp), Sunnyvale, Calif., have penned a plan to sell enterprise NAS systems. Under terms of the agreement, HDS will offer NetApp enterprise NAS gateway devices for Hitachi Freedom Storage arrays managed by HDS HiCommand Management Framework tools.

Oh yeah, that’s right , NetApp is now dancing with IBM.
Andy Monshaw, General Manager, IBM Storage Systems, states, “The IBM relationship with Network Appliance is a prime example of how two industry-leading companies, both of whom actively support open standards, can team to offer information on demand solutions.

No matter who they are dancing with today, Zerowait will support whichever legacy version of NetApp equipment you are left with for years to come.

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Will Sun and ZFS take over the enterprise?
Robin Harris at Storagemojo.com has been writing about these efforts for a couple of months now, and I have to give him credit for highlighting what is going on. Enterprise Storage will commoditize, it might be ZFS that leads the way – if Sun can productize and position the product correctly. But not many companies are able to make the transition from a proprietary high margin model to a commodity low margin model. I think one of the consumer electronics companies will end up owning the market for commoditized enterprise storage in a few years time.

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No change in circumstances can repair a defect in character – Ralph Waldo Emerson

Since opening our European operations we have seen a large increase in our requests for quote for our service and support of legacy NetApp equipment. There has also been a large increase in requests for service and support of the NetCache line because NetApp has sold off that line of equipment. Zerowait is focused on helping our customers get more long term value out of their NetApp infrastructure, so it is refreshing to see the following statement by a NetApp big wig that shows NetApp is suddenly actually trying to help customers get more value out of their equipment also.

The availability of 10Gb Ethernet connectivity will benefit all of our IP-based storage solutions: NFS, CIFS, and iSCSI, said Rich Clifton, vice president and general manager of the Networked Storage business unit. The aggressive NetApp support for 10Gb Ethernet demonstrates the ongoing commitment we make to our customers to deliver powerful solutions that help them gain more value from their data infrastructure.

With a commitment like that, it shouldn’t be long until NetApp provides transferable licenses to all of their customers and starts providing legacy customers with bug fixes at no charge.

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“If you can’t accept losing, you can’t win” Vince Lombardi

Every quote we make does not turn into an order, and there are a variety of reasons for this. For a customer with legacy NetApp equipment that is looking to extend the life of his product we win the majority of the business we quote. The reason we win the business is that we understand that the customer is honestly trying to get the best return on investment on his current Network Appliance storage investment, and we can show the customer that by using our service and support he can save a substantial amount of money and maintain his High Availability equipment.

Maintaining High Availability equipment at a reasonable price allows our customers to spend their scant budget dollars on staff, and as many customers of ours recognize, a highly skilled staff can provide an organization with many more benefits than a brand new box does. No matter how polished the sales pitch is.

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All the customers I spoke with on my trip across the country told me essentially the same thing. They love our NetApp service and support. While on my cross country trip our staff in our new European office was very busy and we are very encouraged by what we are hearing from our customers and new prospective customers in Europe. The positive response and large number of requests for quotes for our Network Appliance equipment service and support in Europe has been great.

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Air Race Report

Flew from San Jose into Reno on Friday. Ran into rime ice at 11000 feet and had to climb to 13000 to get out of the ice. Flew to the Mustang VOR and onto Runway 16L at Reno, 30 Knot crosswinds made the landing interesting. The races were great on Saturday, although it was unfortunate that Rare Bear and Dago Red are out this year. Strega had some sort of problem and did not finish the race on Saturday. The Thunderbirds and other aerobatic pilots put on a great show.

On Sunday we flew back to San Luis Obispo. Climibing to 13,000 feet out of Reno took some circling with my normally aspirated engine. At 13,000 feet I was only showing 16 inches of Manifold Pressure. Flying over lake Tahoe was worth the climb.

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Flew into San Jose yesterday. Perfect flight and landed on runway 29 and taxied over to San Jose Jet Center. Really great folks! Rented a car and started answering my phone as the calls were non stop. A bunch of our customers are meeting us at the Reno Air races this weekend and we are looking forward to a really great time with them.

Big engines and fast planes – nothing better !
www.airrace.org

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