Thursday, December 22, 2011

EMC drive shortage and price increase

The uncertainty surrounding the enterprise disk marketplace seems to be causing EMC to mention that it has a disk shortage and there will be a price increase. Dave Raffo in his blog has the following interesting information:

EMC vice chairman Bill Teuber sent an email to customers and partners stating the vendor has eaten price increases so far, but will begin to pass them along to customers after this month. He also wrote that EMC does not expect supply problems because it is the largest vendor of external storage systems, but it has to pay more for the available drives.

“EMC has absorbed the price increases that have been passed on to us and will continue to do so through the end of the month,” Teuber wrote. “Unfortunately we will not be able to sustain that practice. Beginning in Q1 2012 we will be increasing the list price of hard disk drives up to 15% for an indefinite period of time. While we hope that this increase is temporary, at this time we cannot forecast how long the flooding in Thailand will impact HDD [hard disk drive] pricing.”

Another email Teuber sent to EMC personnel said the price increases will be from 5% to 15%. He also wrote the increases will apply to all EMC product lines.

The shortage is expected to affect PC drives more than enterprise drives, but EMC enterprise storage rival NetApp lowered its revenue projection last month because of expected shortages.

Teuber referred to NetApp indirectly in his email, stating “Many of our competitors have already announced drive shortages and price increases and have stated that this will have a material impact on their ability to hit revenue expectations now and in the future.”

Zerowait has been experiencing an uptick in our array shelf and disk storage sales over the last few weeks, but we thought it had to do with the great prices we are now offering on some of our storage specials. But the upward trend in our storage sales business could be because we have a lot of stock which we can ship immediately, while the OEM's may be allocating disks based on their own supply calculations.

We had a great year in 2011, and we are looking forward to next year.

Friday, December 16, 2011

No Disk Shortage at Zerowait!

Yesterday afternoon I had a long conversation with a customer of ours in California that told me that they were looking at some new NetApp storage equipment, but were told by their Salesperson that the floods in Thailand have rippled through NetApp's supply chain and that NetApp could not guarantee a delivery time frame. This was predicted by NetApp and discussed by Thomas Georgeons:

http://seekingalpha.com/article/308538-netapp-management-discusses-q2-2012-results-earnings-call-transcript

"Looking ahead, the impact of the Thailand flooding can potentially be the biggest swing factor on both our top and bottom line in the second half. The large buyer drives we did, as this was all unfolding, should sustain us through a good part of Q3 but probably not all of it. Although enterprise class drives are considered to be the least impacted, we still anticipate some amount of supply and pricing complexity. We have all heard the predictions of the industry analyst and the drive vendors themselves. Some of the information is conflicting and most of it is changing daily in regards to scope and ultimate impact."

We are working with this customer and several others to help them get through their end of year storage requirements with transferable licensed filers, and shelves of disks that we have in stock and ready for shipment.

We want to help loyal NetApp customers maintain their equipment, and we can help them grow their NetApp infrastructure even during the disk shortage. If you need storage during the shortage, please give us a call at one of our international offices .

Wednesday, December 07, 2011

Economic Uncertainty? Zerowait’s NetApp support business is booming

2011 Is shaping up to be the best year ever for Zerowait’s independent NetApp support business. We have already surpassed last year’s sales of our Zerowait Parts Assurance contracts on NetApp equipment from our offices in the USA, UK, and Australia. We expect to see our growth continue next year due to economic uncertainty. At Zerowait we understand that our customers are under severe budget pressure to control their storage infrastructure costs, and with our customers help we have come up with several support programs which help our customers control their NetApp storage growth and support costs.

Recognizing that post warranty support and extending time in service for systems reduces new unit sales, I am occasionally asked by storage analysts focused on NetApp how much of an effect Zerowait has on NetApp’s new product sales. I don’t believe there is any way to calculate how many NetApp customers have put off a system upgrade due to Zerowait’s support in any single period. However, over the last decade Zerowait has built a dynamic, thriving, international business in third party support for NetApp equipment. And our customers in the financial, entertainment, health and government sectors throughout the world continue to recommend our company to their peers.

Whether you need an additional storage shelf, transferable licensed system, or a support contract, Zerowait will work with you to meet your support and budget requirements.