Tuesday, April 01, 2008

The Storage Market is maturing

Today starts the new quarter for Zerowait and we expect our family of customers to continue to expand. Our first quarter exceeded our growth expectations. Apparently more companies are instituting their austerity programs and IT budgets are tightening. Savvy customers recognize that Zerowait can help them control their High Availability NetApp storage costs for the next few years.

Many folks have realized that High Availability NetApp storage does not become archaic just because NetApp has a new model to sell. No matter how much money NetApp spends on their new marketing campaign, customers will look to see if the new model actually provides them with any better performance then the model they have. If what the customer has is good enough for what the customer is doing, why should the customer upgrade? NetApp sales folks like to tell their customers that buying new is cheaper than NetApp's maintenance costs for their legacy equipment. This may be true, but more customers every month recognize that Zerowait provides an affordable and reliable source of legacy equipment service and support for NetApp that saves them money!

A maturing market offers alternatives to customers and brings end user prices down. In view of the current economic conditions, customers should expect to see higher discounts off NetApp's price list as NetApp tries to grow their market share in the total storage market. We have seen NetApp discount legacy support when they are confronted with a customer with our quotes. Competition works : )

No comments: