Thursday, July 31, 2008

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.

No comments: