Image by macspite via Flickr

     The storage blogosphere has erupted with financial market comments, analysis, and concern.  My friend Marc Farley described it as potentially ”…the wheels come off the bus…”   NetApp’s Dave Hitz, had an anecdote from the .Com crash that was very impactful to me personally (as I sat in executive meeting just like that), and its relation to the current market situation.

     I agree strongly with Dave Raffo over at StorageSoup: “Until now, the storage industry has held up well this year in the face of any economic slowdowns – even those affecting the financial services sector.” 

     Well, it appears, the shoe did drop, the wheels are missing some lug nuts, and this is more than a slowdown.  The DOW closed another 500 points down yesterday.  The banking industry is going through major consolidation, mostly forcibly.  Rumors of GE, possibly the largest company in the United State, having problems securing additional lines of credit. 

     I do think however, that the purchasing habits of large spending IT organizations has changed

drastically inte the past 10 years.  I can remember buying 3 frames of EMC Symm in late 90s a purchase that should have carried our storage needs for at least 3 years.  In today’s market companies have moved to purchasing for the next 3-6 months of growth, not 3-5 years.  This leaves organizations to get better pricing as costs drop for technology, and requires continued storage purchasing.  I do think we will all be effected more by companies not being able to finance capitol purchases rather than not needing to make those purchases, however, companies will find a way to survive!  I think the storage vendors will come up with unique financing terms from their own back accounts.

     I tweeted the other day “I think the bottom of the DOW will be 8500, that’s when I plan on buying back in!”, but deep down in my heart I know a crash that low will destroy many peoples savings, retirements, and futures.  This is a time for deep reflection, prayer (if you pray), luck, and a lot of hope.  When times are at the worst, things can only get better.

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• NetApp shares fall on downbeat forecast
• Storage market thrives in down economy