Issue dated - 16th August 2004

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Front Page > News Analysis > Story Print this Page|  Email this page

HP climbs up the NAS ladder

While Network Appliance is still the leader in the NAS space, SAN major HP is trying to catch up with a focused strategy, says SRIKANTH RP

AMIT MALHOTRA discloses that banks have been a big growth area for HP’s NAS product portfolio because a majority of them are looking at NAS devices for backups at the branch level

THE Indian NAS market accounted for $16.77 million out of the total external storage market of $87.15 million in 2003. But unlike other segments of the storage market, NAS is completely dominated by leader Network Appliance. None of the SAN majors have had much luck in tapping this segment. However, HP believes that it can reduce the gap between the leader and itself in the NAS market through its current product positioning. The strategy of using its SAN strengths—along with the alliance with Microsoft—has meant that HP has moved into the number two position in the NAS segment (Source: IDC).

Says Amit Malhotra, business manager, Nearline and NAS, Network Storage Solutions, HP India, “Last year we were hovering around the number five or six mark in the NAS segment. However, with a new product line aimed at the SME segment, we have gained market share at the expense of other players.”

Consolidation boost

As more enterprises started looking at consolidating servers, HP was quick to announce a product line which would enable enterprises to consolidate Exchange Server 2003 data based on Windows Storage Server 2003. The new products announced were HP StorageWorks NAS 2000s and 1200s, targeted at companies in the SME segment looking to consolidate their file, print and e-mail servers. Malhotra says that the 1200s and 2000s have been a big hit in the SME segment as these companies can back up and store data from file, print and e-mail servers on to a single NAS device.

Additionally, according to IDC, Microsoft dominates the messaging market in India with a 60 percent share. Against this backdrop, HP’s decision to standardise its entire StorageWorks NAS portfolio on Windows 2003 has paid off in a big way. The company, along with Microsoft, is pitching entry-level NAS boxes as a plug-and-play platform for dedicated file and print services, disaster recovery or backup, and for file server consolidation. The exploding amount of data related to e-mail is making SME customers look out for cost-effective options for storage and retrieval. HP wants to position the NAS boxes as a viable backup and retrieval medium for e-mail. The importance of the HP-Microsoft alliance can be seen from the fact that HP along with Microsoft is targeting 5,000 Microsoft Exchange customers in India through a focused campaign.

SAN edge

Since HP is also active in the SAN segment, the company is trying to use the installed base of its SAN products to push its NAS products. For example, for existing SAN customers, HP recommends NAS boxes for non-critical applications. The biggest growth areas for HP have been sectors such as BPO, banking and software development. Malhotra says that banks have been a big growth area for HP’s NAS product portfolio because a majority of them are looking at NAS devices for backups at the branch level. As HP offers NAS boxes from 320 GB to around 27 TB, SME customers can easily scale their storage needs without having to re-design their data network or replace existing NAS boxes. HP believes that by using the strategy of consolidation, SME customers can reduce costs by 50 percent.

Reseller power

Apart from the product positioning, HP has also more than doubled the number of resellers focused on the NAS segment from 110 to around 250 today. Additionally, the company is also trying to educate resellers to focus on giving the end customer a complete storage solution. Since HP plays in almost all the segments of the storage industry—from tapes and optical media to NAS and SAN— the company wants its resellers who are focused on a particular segment to start focusing on other segments. For example, the company is educating resellers focused on the tape business on the value proposition of NAS devices.

In the current storage environment, HP’s strategy of positioning SAN for mission-critical applications and NAS for non-mission critical applications gives the company a win-win strategy in both the markets.

srikanth@expresscomputeronline.com

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