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Microsoft Gets NASty: Page 3 of 3

Moreover, Webster notes that Microsoft has a bigger problem ahead in tackling the open source software movement. "Linux is now eating away at Windows market share within the enterprise," he says. "While there's still lots of growth in the short term for Windows-based storage, longer-term prospects aren't so bright. Linux is fast becoming the next big growth opportunity."

Microsoft’s Stevens agrees the company must execute on a number of different fronts. But he says industry momentum towards lower storage costs and better integration helps Microsoft enormously. "We must be very open, very close to customers, and very trustworthy, and it will work," he says. "We can't just be me-too, lower cost; we have to innovate in this market."

For its part, NetApp is unfazed by the looming threat from Redmond. In a statement responding to Kumar's note sent to Byte and Switch today, NetApp says snapshot capabilities are not a competitive differentiator. "Microsoft is simply adding a feature that it has been lacking for a number of years," the company says.

It should be noted, according to NetApp, that Microsoft's "real goal" is to improve Windows as an application server. "Its storage group is specifically focused on improving the data management and storage integration capabilities of Windows, as well as Microsoft's Windows applications like Exchange Server and SQL Server," NetApp says.

Stevens will outline Microsoft's goals for the storage market Thursday, during his keynote at HP’s National Storage Days