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NetApp Makes SMB Play With New FAS2240, Cuts Entry Pricing To Sub-$7,500

By Joseph F. Kovar
November 08, 2011    10:40 AM ET

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The FAS2240-4 is similar, but packs up to 430 TBs of capacity into a 4U space.

NetApp Tuesday also sharply dropped the entry-level price of an existing storage appliance. That appliance, the FAS2040, is now list priced at just under $7,500 with six 1-TB SATA hard drives, down significantly from its original starting price of about $11,690 when it was introduced two years ago. That brings its price to even less than the $7,920 price of the company's less-scalable FAS2020.

NetApp is also simplifying the ordering of its midrange storage appliances by offering a grand total of only seven software bundle SKUs, Cummings said. While NetApp has offered software bundles in the past, the price and the configuration of the bundles for the new appliances are more in tune with midrange customer requirements, he said. Customers can also purchase software ala carte, he said.

Tuesday's new storage appliances and the drop in price of the FAS2040 is not NetApp's first foray into the SMB storage market.

The company in May of 2006 unveiled its StoreVault line of small business appliances, which were priced starting at around $5,000. However, by early 2009 it had killed off the line.

For companies like NetApp and its rival EMC, the SMB part of the storage market can be much tougher to manage than the enterprise part, said Keith Norbie, vice president of sales at Nexus Information Systems, a Minnetonka, Minn.-based solution provider and partner to both storage vendors.

"The more expensive part of the market has many companies providing great products, but those companies have a lot of trouble in the SMB market," Norbie said. "Look at StoreVault. That product line was inconsistent with NetApp's core architecture. With Vespa, NetApp has brought its WAFL operating system downstream."

Norbie said NetApp's decision to keep the same architecture throughout its line, including for the new FAS2240 appliances, meant that SMB companies will be getting a different kind of user interface than they might be used to.

"I'm not sure how people will feel psychologically about the different interfaces in EMC's VNXe vs. NetApp," he said. "The VNXe GUI is based on its ability to appeal to business users, while NetApp is more focused on the administrator. However, at the part of the SMB market for NetApp, storage in general still requires IT administrators."

Norbie said that the part of the SMB storage market where business "wizard" GUI interfaces are common are served by companies like Iomega, Drobo (Data Robotics), and other retail-type products. However, he said, for new SMB customers just starting up, that part of the market is going to the cloud via Google Apps or Microsoft Office 365, rather than depending on their own storage appliances.

"For NetApp's SMB market, what's more important is its appliances' integration with VMware, replication, and snapshot features," he said. "And I think Vespa is going to be a hit."

NetApp breaking into the sub-$7,500 storage market with the new pricing for its FAS2040 is also very important, Norbie said.

"Customers are looking for a hardware-based platform which provides a scalable entry into this market," he said. "Downstream from this will be the new VMware VSA (Virtual Storage Appliance). If customers want to upgrade on the VSA, they will need something like NetApp's offering."

Peak UpTime's Strasheim called the FAS2240 a "brilliant" throwback to NetApp's older FAS250 and FAS270 appliances, where a customer could start with a lower-cost storage appliance and then, as capacity and scale requirements grew, could use them as a disk shelf for higher-end appliances by just connecting them to another model without the need to migrate the data.

"Also, the fact that NetApp bundled all its protocols with the FAS2240 is critical," he said. "In the past, other vendors passed around FUD that NetApp nickled and dimed customers to death by charging for the protocols. Now NetApp is including iSCSI, CIFS, and NFS in the Vespa."

The FAS2240 is currently available. List pricing ranges from $19,000 to $40,000.



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