CNet has discovered that OS X Lion users lose support for Time Machine backups with third-party NAS hard drives. Time Machine in OS X Lion is now only compatible with Netatalk 2.0. This means that third-party NAS (network attached storage) drives will need a software upgrade from their respective manufactures in order to work with Apple’s next-generation Mac operating system. Users of cable-connected external hard drives will not be affected. Drobo, the company behind popular network attached storage devices has noted the issues on their website:

Another popular NAS drive maker, Synology, has already released a fix in beta form. Other NAS drive makers will likely follow up with their own OS X Lion compatibility updates.

The next official firmware release for all “FS” products will ensure full compatibility with the released version of Mac OS X Lion,  including use of Time Machine.