Anyone have a prediction for how long it will be (if ever) until NetApp is a software only company? For example, Compaq produces a server running a NetApp OS.
I predict 2 years.
I rather hope NetApp don't become a software only company because it would mean poorer quality software and overly complex hardware maintenance in a very short period of time after the decision was implemented.
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The day we can no longer get NetApp boxes will probably be the day when we revert to Sun, SGI or even Auspex for a total solution approach. There are companies out there who do the software only approach, but I've yet to hear of anyone betting their multi-billion dollar/year enterprise on them.
I believe that we'll be selling hardware for a good long time. For something as critical as a file server, most large companies don't want to screw around with rolling their own solutions or playing finger-pointing games between multiple vendors. We actually considered the software only approach when we started NetApp, but couldn't figure out how to make it work.
The strong analogy between NetApp and Cisco made us more comfortable with selling hardware. Cisco's primary value has always been their software, yet they package it as a hardware product. They have specialized their hardware somewhat over time, but the early prototype systems were actually based on Sun hardware, and early real systems were similar. (Not surprising given that Cisco and Sun both came from the Stanford University Network (SUN) project.)
On the other hand, there is a big difference between selling shrink-wrapped software at Fryes, and doing an OEM with somebody like Compaq to let them sell pre-configured boxes with NetApp software. (I believe that Cisco actually announced a deal like this with Compaq a few years ago, to allow Compaq to sell low end routers based on Compaq hardware and Cisco software, but it doesn't seem to have gone anywhere.) I'd love to do something like that, but from the customer's point of view, this still wouldn't be a software only solution.
For low-end servers, I wouldn't completely rule out a shrink-wrapped software solution, but it's not on our urgent list. For high-end or enterprise-class servers, I think that customers want fully integrated solutions.
Dave