The NetApp in-place upgrade capability simply means replacing your existing controllers (filers) with a newer model while reusing the disk trays. This is a benefit of modular storage design (vs. the traditional frame). Aside from any new I/O ports, all of your configuration and user data remains intact. A NetApp engineer usually assists the customer with performing these upgrades, but it's not that difficult and doesn't take very long if you plan properly.
I would think the internal storage on a 2000 series would have to be migrated to external spindles, however.
