At $1/GB I might buy one
If true, this could reflect continued weakness in NetApp’s results, as noted by analyst Tom Curlin at RBC Capital Markets in late July. They’d be plumping up the top line at the expense of the bottom line.
NetApp’s quarter closes Friday
If you are looking for a deal on a NetApp filer, this is the week to get one. Maybe if you call Isilon you can get an Isilon coffee cup overnighted to you to subtly make the point that you are looking at alternatives. At this late date though, just telling your NetApp rep that you are looking at Isilon and will delay the order for a week might get you the rumored break.
The StorageMojo take
Isilon is vulnerable right now. They’ve disappointed Wall Street for 3 quarters and that has hammered their stock. It is one thing to buy from a startup whose stock is trading at twice the IPO price and quite another to buy from one trading well below the offering price.
Taking advantage of a competitor’s weakness is smart business. And getting fabulous end-of-the-quarter deals is also smart business for storage buyers.
Update: Isilon’s VP of marketing, Brett Goodwin, wrote in to say:
Our core underlying business, technology, value prop—is unchanged. We also have $90M in cash and no debt. While we recognize that the stock price has taken a hit—it doesn’t reflect the market demand for clustered storage and Isilon’s leadership position in the category.
Fair enough. Disclosure: I have no financial relationship with Isilon. Darn!
Update I.V: Brett also said he has 125 nifty Isilon coffee cups in stock and ready to ship. Call for yours today!
Update II: RBC Capital Markets is also saying that EMC is having a tough quarter in the enterprise storage space. Flirting with Isilon will enhance your bargaining position with EMC come December.
Comments welcome, of course. Tell me about your NetApp deals, if any.