Commodity
one can buy a single box from Coraid for about the same price, use commodity SATA drives, and get 7TB out of it (more as the drive sizes go up, of course). it will also scale to 4095 boxes on one storage system. truly, a product that is good enough at the right price point, so truly great.
this low-end play is too little, too late. now that other vendors are commoditizing this space, NetApp and other premium storage players will have less market share and more pressure.
i'm sure they miss the old days, when they could charge 10 to 50 times as much for exactly the same system. i bet they'd love some protectionist legal action just now...