Storage vendors are announcing new deals in an effort to make their enterprise goods more tempting amid slashed storage budgets. Today, HP confirmed it is extending a 0% financing deal it had previously been offering with its servers to storage.
According to an HP spokesperson, the HP storage products included in this program are:
The move comes after HP reported double-digit revenue declines over most of its lines of business for its first fiscal quarter. The Enterprise Storage and Servers (ESS) group was no exception, with revenue of $3.9 billion, down 18%. Within that, storage revenue fell 7%; overall profit for the group was also down 14%.
HP joined NetApp in reporting earnings declines in a fiscal quarter that included January. (Interesting aside: Dell reported that its storage business, especially its low-end PowerVaults and EqualLogic midrange iSCSI SANs, did relatively well for its first fiscal 2009 quarter, with business up 7% though overall earnings slipped).
But in a recession this deep, some federal interest rates have also been cut to zero in the hopes of getting business moving again. Housing prices are so depressed that theoretically, they should be affordable to a whole new class of buyers. But neither of those things–and so far, all the King’s horses and all the King’s men–haven’t done much for the markets, if only because everyone who still has a job is so afraid they’ll lose it by the end of this year that they aren’t spending, no matter how good the deal is.
Many enterprise storage users seem to be in a similar boat–these financing deals, like low home prices, would be irresistible in better times. Ironically, in bad times, they may not be enough.