The Next Challenge
forbes.com
Even as NetApp attacks EMC from below, it is being chased by an unlikely rival that makes an even lower-cost solution: Microsoft. For two years the Redmond, Wash. giant has been pushing a version of its Windows operating system tweaked with extra features for running storage devices. It's all part of Microsoft's plan to put Windows everywhere, from TV set-top boxes to handheld devices and cell phones.
And why not? Storage devices like the ones NetApp sells are basically regular Intel-based computers with a bunch of disk drives attached. Instead of using Windows, NetApp runs its own operating system, called Data OnTap. Microsoft has asked NetApp to drop OnTap and use Windows, but NetApp won't do it.
No matter. Microsoft today sells its Windows-based storage software as a kitto more than 20 server makers, including Dell, HP and IBM. They call it Windows Powered NAS (meaning "network attached storage"). The hardware companies load Microsoft's code onto Intel servers, add their own software, attach some disks and produce a box that Microsoft claims costs, on average, less than half what NetApp charges.
Continental Airlines chose Windows-based storage boxes made by Compaq (now HP) in part because they were low-cost and easy to manage--you just use the same programming tools you use with all your other Windows servers, says Eric Craig, director of technology at Continental in Houston.
Microsoft and its allies now hold 44% market share (by units) in the NAS market that NetApp pioneered. In dollars Microsoft's share is only 14%, a reflection of its lower prices. NetApp, by contrast, has 35% share of dollars but only 6.5% of units shipped. EMC, the most expensive storage player, gets 41% of NAS dollars on only 1.4% of units. |
