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NetApp

Company

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NetApp (before Network Appliance) is the American company, is among leading manufacturers of storage systems.

Content

Revenue and Net Profit billions $

Number of employees

Assets

+ NetApp

NetApp creates hardware solutions and the software for storage, service, protection and archiving of data. The company developed the concept of direct access to data in network which basis was formed by development of the new Data ONTAP operatingsystem which provides it. This solution laid the foundation for creation of the market of storage systems of NAS (Network Attached Storage).

Service-oriented infrastructure of Netapp is constructed on the unified multiprotocol platform integrating server and network solutions, solutions for DWH and tools on data management. A set of solutions on the basis of service-oriented infrastructure includes: Exchange and SharePoint as services, infrastructure as service (IaaS), desktop as service (DaaS), DWH, data protection.

One of the key directions of strategy of Netapp - "cloud" technologies: development of architecture of solutions is conducted so that they as much as possible were suitable for use by suppliers of cloud-services and also allowed clients to create the infrastructures which are easily integrated with public "clouds" of providers. Besides, tenants of cloud capacities can optimize performance of networks and storages, to reduce costs on their contents, to simplify administration.

Performance Indicators

2020: Revenue - $5.41 billion

In 2020 financial year revenue of Netapp made $5.41 billion, having decreased concerning an indicator of year prescription ($6.15 billion) because of COVID-19 coronavirus pandemic.

Sales of storage systems which cornerstone the flash memory is only in reporting year which came to the end at the company at the end of April of 2020 calendar year, were equal $2.6 billion, having increased by 12%.

Income from the cloud services used for work with data increased by 113% year on year and reached $111 million. Revenue in a segment of private clouds was equal to $408 million, having risen by 19%.

Financial performance of Netapp

The net profit of Netapp in 2020 to a fiscal year was $819 million, having decreased concerning the profit of $1.17 billion registered according to the results of previous year. Recession of profit happened in many respects because of heavy expenses.

In 2020 reporting year NetApp returned to shareholders $1.85 billion in the form of share repurchase of stocks and in the form of dividends. On accounts the company had money and their equivalents in the amount of $2.88 billion.

In structure of annual revenues for sale of products $3 billion, were the share of a software maintenance — $1 billion, of support of the equipment and other services — $1.38 billion. The previous year these indicators equaled $3.76 billion, $946 million and $1.45 billion respectively.

The lion share of revenues of Netapp is still concentrated in the countries of North and South America (mainly in the USA). In 2020 this region brought to a fiscal year the companies of 53% of revenue, EMEA country – 32%, the Pacific Rim — 15%. In the report it is noted that state orders in the USA in the total turnover of vendor reached 12% at the end of year.

As for methods of the organization of sales, partners provided NetApp of 79% of revenue in 2020 to a fiscal year. The remained 21% fell on the direct sales performed by the company.[1]

Business in Russia

Main article: NetApp of Russia and CIS

Opening of office Netapp in Russia took place in 2004. Acquaintance to the East European market and its requirements became one of the factors which influenced in 2004 making decision on need of presence of the company in the Russian market. In addition, Russia is included into group of the countries with the most quickly developing economies, the so-called BRIC block (BRIC - Brazil, Russia, India, China). By the time of entry into the Russian market the company came to the leading positions in Western Europe on deliveries of DWH, taking the first and second places on the occupied market share. Growth rates of the company required the new markets.

History of Netapp

2020

Dismissal of 5.5% of the state because of a pandemic

On August 25, 2020 it became known that NetApp will cut down about 5.5% of the staff to reduce costs in the period of a koronavirusny pandemic.

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NetApp redistributes resources and investments to use them more effectively for success of the company in a long-term outlook — reported in the company to the The Register edition.
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We continue to focus on the markets in which at us is as considerable presence, and in which we have clear advantages before competitors. Generally it is the software markets for storage systems and cloud services — added to NetApp.
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The developer did not specify, where exactly he is going to dismiss employees. The company has 8 offices in the different cities and states of the USA. The size of the state is 11 thousand people. Thus, about 600 will get laid off.

NetApp will dismiss 5.5% of the staff because of COVID-19

According to the representative of Netapp, staff reduction is one of stages of reorganization of the company which began some time ago. The purpose of this conversion consists in concentration on the products helping customers to carry out digital transformation of the business.

Mainly dismissals to concern marketing departments and development, including the staff of the former company SolidFire — producer a flash-massovov for cloud providers whom NetApp purchased in 2015. At Internet forums employees write in comments that, most likely, reduction of staff of SolidFire says that NetApp took everything that it could from this acquisition.

In recent years by August of the 2020th NetApp focused on release of the software for the data storage capable to integrate local and cloud storages in single hybrid systems. At the same time the company released the Kubernetes distribution kit for automation of deployment, scaling of the containerized applications on the hyper converged solutions of SolidFire.

While NetApp continues to cooperate actively with Cisco, releasing joint solutions for data centers of FlexPod, other attempts of an exit in a hardware segment success were not crowned, and the company moderated the ambitions.[2]

Completion of the transaction on Spot acquisition

The Netapp company announced on July 15, 2020 completion of the transaction on acquisition of the Spot company working in the field of management of calculations and cost optimization for public clouds. Read more here.

Purchase of software developer for optimization of cloud applicaions of Spot

At the beginning of June, 2020 the Netapp company announced acquisition of software developer for optimization of cloud applicaions of Spot. Read more here.

Purchase of the developer of the platform for start of virtual desktops of CloudJumper

On April 29, 2020 NetApp announced CloudJumper acquisition — the leading player in the markets of services of remote desktops (RDS) and infrastructures of virtual work places (VDI). Read more here.

Purchase of the developer of software-defined storages for business of Talon Storage Solutions

In March, 2020 NetApp announced acquisition Talon Storage Solutions, but NetApp did not begin to set the price of the transaction. Is going to integrate software the purchased startup with the solutions Cloud Volumes ONTAP, Cloud Volumes Service and Azure NetApp Files. In more detail here.

Purchase of the developer of software-defined storages for business

In March, 2020 NetApp announced acquisition of Talon Storage Solutions, but NetApp did not begin to set the price of the transaction. Is going to integrate software the purchased startup with the solutions Cloud Volumes ONTAP, Cloud Volumes Service and Azure NetApp Files. In more detail here.

2019

Growth of revenue by 4% to $6.15 billion

In 2019 financial year which for NetApp was closed on April 26 the 2019th calendar sales to the company made $6.15 billion, having risen by 4% concerning the 2018th.

Sales of products of Netapp reached $3.76 billion revenue against $3.53 billion the previous year. Income from services of a software maintenance raised from $902 million to $946 million. Support of the IT equipment and other services brought to the American producer an annual turnover in the amount of $1.45 billion that there is a little less indicator of year prescription ($1.49 billion). Sale of storage systems which cornerstone only the flash memory is increased by 25% year on year.

Financial performance of Netapp

The company still gains most of all income in North America — in 2019 to a fiscal year the share of this market in total revenue of Netapp made 56%, having increased by 2 percent points concerning the 2018th. About 44% of turnover were the share of orders from corporate clients in the USA, 12% — on purchases of state institutions and the companies from the same country.

Sales in the countries of EMEA occupied 30% of total in 2019 reporting year that on 2 percent points it is less, than the previous year. The share of the Pacific Rim did not change and remained at the level of 14%.

NetApp increases direct sales: in 2019 to a fiscal year their share appeared equal 24% against 76% of income which is brought by partners. In the 2018th the ratio was 21% to 79% respectively.

In 2019 financial year NetApp locked in net profit in the amount of $1.17 billion that several times there is more profit got the previous year.

On May 23, 2019, when NetApp published financial statements, stocks of the company fell in price more than for 5% at electronic biddings after closing of the exchange. Quotations fell because profit and sales appeared below market expectations, as well as the forecast.[3]

Purchase of the developer of the AI platform for data protection of D.Day Labs for $70 million

At the end of May, 2019 it became known of sale of the developer of the AI platform for data protection of D.Day Labs of Netapp company for $70 million Read more here.

2018: Revenue in $6 billion; 40% were the share of a flash storage

In 2018 financial year revenue of Netapp reached $5.91 billion, having increased by 7% of rather previous year. However net profit was reduced several times — from 509 to 76 million dollars.

Decrease in profit is connected with tax reform in the USA because of which the company once spent $850 million for return of income home and other actions concerning updating of the American tax law.

Financial performance of Netapp

At the end of 2018 earned about $3.5 billion revenue from sale of products of Netapp that honor at $500 million more, than the previous year. Income from services of a software maintenance decreased from 965 to 958 million dollars. Support of the IT equipment and other services generated to the American producer revenue in the amount of $1.5 billion that there is a little more indicator of year prescription. Annual sales of data storage devices on a basis a flash memory made $2.4 billion — 43% more concerning 2017 financial year.

The most part of income of Netapp is still brought by the countries of North and South America (mainly the USA) in which the company received about 54% of revenue in 2018 financial year. Shares of EMEA and the Pacific Rim made 32% and 14% respectively. Year on year distribution of turnover of vendor practically did not change.

Core business of Netapp is based around partners who provided the company of 79% of annual revenues. She earned 21% from direct sales that on 1 percent point it is less, than the previous year.

In the report of Netapp it is also said that the company shows the greatest growth rates among five largest producers of external DWH of the corporate level. The same concerns the markets of platforms of data storage for cloud infrastructures, SAN and the integrated infrastructures.[4]

According to the results of the I quarter of 2018 calendar year the Netapp company wins first place on All-Flash market share in Russia (in more detail), Austria, Germany, Spain, Italy, the Netherlands, Finland, France and Switzerland.

Also NetApp continues to hold leadership in an All-Flash segment in EMEA region the fifth quarter in a row. In the first quarter 2018 the market share made 28.7%, the total amount of proceeds from sales of solutions of All-Flash — $173.5 million.

2017

Profit increase twice to $509 million; revenue — $5.52 billion

On May 24, 2017 NetApp provided business results for 2017 financial year. The profit of the company doubled thanks to strong sales of storage systems on a basis a flash memory.

For the 12-month reporting period which came to the end on April 28, 2017 sales of Netapp reached $5.52 billion against $5.55 billion the previous year. Net profit was $509 million whereas in 2015 financial year profit was measured by $229 million.

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Permanent concentration and the disciplined management provided ours to us one more strong quarter — the CEO of Netapp George Kurian comments. — We turned back dynamics, returning the company to revenue growth and fulfilling all obligations for 2017 financial year. Implementing innovations in the traditional markets and corporate technologies in new areas, we increase a market share, we expand our presence in target markets and sozdayev new opportunities for NetApp.
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NetApp follows from the report that in 2017 financial year sale of products brought to the company more than $3 billion revenue that there is a little more result of previous year. Income from services of a software maintenance rose from 949 to 965 million dollars. Support of the IT equipment and other services provided vendor with revenue in the amount of $1.5 billion. Annual sales of data storage devices on a basis jumped a flash memory by 140%, having reached $1.7 billion.

NetApp received about 78% of revenue from partners. North and South America remains the largest market for the company: there the company received 56% of an annual turnover, including 13% of clients in the American public sector. Shares of the countries of EMEA (Europe, the Middle East, Africa) and the Aziatskogo-Tikhookeansky region made 31% and 13% respectively.

After the publication of financial statements of quotation of Netapp dropped by 5%. In three last months actions fell in price by 3.4% that analysts connect with the escalating competition in the market of products for data storage.[5]

Sale of Google of offices in Silicon Valley for $319 million

In the fall of 2017 of Netapp began to consolidate the campus in the city of Sunnyvale (State of California), including due to sale of several buildings for the purpose of cost reduction. The company reported to the Valley Business Journal edition that it will transfer all the employees to the main building after sale of three offices for $318.7 million Google company which already purchased earlier tens of a real estate in neighborhoods.

One of the buildings of Netapp sold to Google

The sold buildings located in NetApp headquarters to Sunnyvale at address 475 and 495 of East Java Drive and 1130 Geneva Drive. The company confirmed that it sold buildings 1, 3 and 4 and also the free section adjacent to the building to the fourth house.

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These efforts on transformation included assessment of total area of our real estate to optimize performance and to cut down expenses — the representative of Netapp reported. — Our employees to Sunnyvale will be located in buildings 6, 7, 8 and 9 that will provide to the company wide space for growth continuation in the future.
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NetApp refused to comment whether the company is going to reduce jobs as a result of strategic consolidation. On the website in the section of vacancies of Netapp it is said that in September, 2017 the company had more than 100 open positions to Sunnyvale. The company at that time was the 18th largest IT employer of Silicon Valley, according to the research Business Journal. In the first half of 2017 of Netapp dismissed 160 employees to Sunnyvale, having said that these reductions were a part of "internal restructuring", according to the state documents of the State of California. The liquidated positions included financial, business analysts, engineers and technical directors. Dismissals also concerned personnel on business operations and product managers.

According to the top analyst of Enderle Group Rob Enderle, NetApp very much tries to compete with such companies as Dell Technologies, and, quite possibly, is subject to acquisition. Dell Technologies puts very strong pressure upon the market and forces many companies to review the strategy.[6]

NetApp expands alliance with Microsoft

On June 22, 2017 the Netapp company announced plans of expansion of strategic alliance with Microsoft. Among the purposes of alliance there is a help to business in acceleration of transition to digital technologies and more active use of opportunities of a hybrid cloud.

NetApp is going to expand cooperation with Microsoft, having included in it the services of data management in a hybrid cloud created on the basis of ONTAP software.

In the field of cooperation of Netapp and Microsoft:

  • development of cloud services on data management on the basis of software of ONTAP which will be offered in Azure cloud.
  • the engineering cooperation allowing to propose the architectural concepts accelerating migration of corporate applications in Azure and Azure Stack and helping clients to use effectively possibilities of data.
  • solution integration of FabricPool of Netapp company reducing storage costs of "cold" data by means of automatic translation from the local level in a cloud using Azure Blob Storage.
  • providing Azure as a spare location for Cloud Control SaaS from NetApp offering services of backup, archiving and ensuring compliance to the legislation for increase in efficiency of Microsoft Office 365.

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The enterprises rely on cloud innovations of Microsoft and its portfolio of cloud services of Azure for preserving of competitiveness during a digital era. We take a step on the way of expansion of our strategic alliance, opening access to services on data management of Netapp in cloud networks Azure and providing support of virtualization and deployment of a private cloud.

Anthony Lye, senior vice president of division of Netapp for development of cloud business
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NetApp proposes the solutions for data management in a hybrid cloud supporting Azure:

  • NetApp ONTAP Cloud for Azure is a combination of abilities to manage data with functions of deduplication, compression and backup.
  • Hybrid cloud solutions of Netapp AltaVault for Azure reduce time, expenses and risk level thanks to backup of cloud workloads. Using the client reserve software, AltaVault deduplitsirut and quickly transfers data to Azure Storage.
  • NetApp Private Storage for Microsoft Azure provides a cloud computing architecture of storage which allows the enterprises to build the flexible infrastructure combining scalability and flexibility of Azure with abilities to manage and performance of local storage Netapp on subject to joint placement.

2016

Active cooperation with SAP

  • More than 2.500 + customers deployed SAP solutions on NetApp
  • Some large SAP solutions work at NetApp®: 20, 30TB, now 88 TB DBs
  • The largest storage provider for SAP and Oracle®
  • Prevalidirovany designs for SAP

  • SAP provides more than 30 SaaS of applications for thousands of customers based on NetApp
  • SAP Center of Excellence (CoE) uses NetApp for PoCs, Value Prototyping, Virtual Appliance Factory
  • Co-Innovation Labs (COILs): are sponsored and completed with Netapp
  • In detail in 11 SAP HANA Enterprise Cloud (HEC)
  • In detail in 7 SAP SaaS cloud

Reduction of 6% of the state - 650 people

At the beginning of November, 2016 it became known of the next reductions in NetApp. The American company dismisses people to save against the background of the changes happening in the market of technologies of data storage.

According to the CRN IT portal with reference to the statement NetApp, the company will reduce number of staff by 6% (about 650 people). Expenses on personnel reorganization which is going to be completed by the end of April, 2017 (financial year of Netapp comes to an end at this time), are estimated at $50-60 million.

NetApp reduces 6% of the staff

The The Wall Street Journal newspaper notes that it is already the third wave of reductions in NetApp, in two previous the number of staff of vendor decreased approximately by 14%.

According to the representative of Netapp Judy Radlinsky, most of the employees who got laid off are notified on November 3, 2016. At some foreign offices dismissals will be preceded by negotiations with local labor unions, she added.

NetApp reports that the company dismisses people  within the continuing transformation of business assuming focus of the company on the "growing" markets of disk storages on a basis a flash memory, new generation of data centers and hybrid cloud solutions.

NetApp saves "confidence in what at the steady course of business" will be able to return "to  moderate growth" in  2018 financial year, said in the statement of the company.

NetApp lays great hopes on a flash storage about what it is possible to judge at least by acquisition of SolidFire company for $870 million at the end of 2015. NetApp was late with entry into this market, however its extensive base of clients rather steady, and customers still trust in products of the company, Eric Collins, the technical director of the company  of PCPC Direct (the partner of Netapp) considers.[7]

Reduction of 12% of the state - 1500 people, the crash of actions for 38% in a year

On February 17, 2016 NetApp announced the next reductions of jobs. This time the company will be left by about 1500 people.

According to the document sent to Netapp to the U.S. Securities and Exchange Commission (Securities and Exchange Commission, SEC) until the end of the first quarter of 2017 financial year (will begin at the end of April of the 2016th calendar) the staff of the company will decrease by 12%.[8]

The producer of disk storages did not specify how many people will be dismissed. By the end of October, 2015 the number of staff of Netapp totaled 12,300 people so as a result of a new wave of reductions about 1500 working positions can be liquidated.

NetApp dismisses about 1500 employees

For payment of compensations by the dismissed employee and other purposes connected with staff reduction it is going to spend about $60-70 million in the fourth quarter 2016 financial year. NetApp says that this step is a part of the large-scale restructuring assuming optimization of core business and reduction of operating expenses. The company hopes that by the end of 2017 financial year it will be able to achieve economy in $400 million.

As notes the Fortune edition, the Netapp company on an equal basis with other large producers of storage systems for data centers faced a number of difficulties at adaptation to how corporate clients pay more and more attention to cloud services. Many analysts note that such companies spend less money for purchase of the IT equipment, preferring to lease computing powers of Amazon, Microsoft, etc.[9]

On this background of Netapp also carries out restructuring during which the company on smaller two times carried out personnel cleaning in 2015: in May and August it was announced staff reduction for 4%.

By February 17, 2016 stocks of Netapp fell in price for the last 12 months by 38%. In day of the declaration of reduction of jobs for 12% of quotation of the company almost did not change in comparison with previous day in any way.

2015

Fall of income

On May 20, 2015 the activities report of Netapp for 2015 financial year was published. At the same time the company announced reduction of jobs.

According to the results of 12-month reporting period which came to the end on April 25, 2015 revenue of Netapp made $6.1 billion against $6.3 billion the previous year. Net profit during this time decreased to $560 million from $638 million.

Revenues of Netapp fell because of gain of the competition and change of business accents of the producer

Financial recession of Netapp is connected with drop in sales of disk storages to OEM manufacturing and gain of the competition in the market where the American company should resist not only to the leader of EMC, but also young players, like Nimble Storage and Pure Storage which offer inexpensive devices on a basis a flash memory.

According to the chairman of the board and the CEO of Netapp Tom Georgens, business of all producers DWH is under the negative pressure of a trend at which clients pass to cloud data storage instead of buying the equipment and services on its service.

In these conditions NetApp decided to make changes to the range, having focused on promotion of the program configured operating system for storage systems of Netapp Clustered Data ONTAP. However many large customers did not estimate an innovation, having preferred to wait until the vendor releases the new versions of products equipped with functions necessary for them, noted Dzhordzhens.

"We underestimated complexity of transition. In it completely our fault, and we intend to correct it", – the head of Netapp said.

Along with the publication of financial statements NetApp announced reduction of number of staff for 4%. To the third to quarter of 2016 financial year it is going to dismiss about 500 employees. Expenses on this personnel reorganization will make from $25 million to $35 million, the most part of costs is necessary for the first fiscal quarter.

According to Dzhordzhens, the company expects cost reduction and gradual increasing sales of new products thanks to what in the second half of financial year it will be possible to return to revenue growth.[10]

NetApp will reduce thousands of jobs

In April, 2015 it became known of dismissals in NetApp. According to analysts, the company is in a difficult situation therefore it needs sweeping changes.

In February, 2015 the chairman of the board and the CEO of Netapp Tom Georgens warned employees about possible reductions of jobs which, according to the top manager, are necessary for the company for accomplishment of financial tasks.

Tom Dzhordzhens did not call even the approximate number of employees who can leave the company. According to a source of the The Register edition, within the planned restructuring the number of staff of Netapp can be reduced by a third. As of April 15, 2015 the staff of the company totals about 12,600 people.[11]

The previous wave of dismissals in NetApp was announced in March, 2014. Then it was talked of liquidation of 600 working positions or 5% of the state what it was going to spend from $35 million to $45 million for. Before the company dismissed 900 people in 2013.

The previous dismissals in NetApp and also about what media learned in April, 2015 are a part of the expense reduction program which is executed by the company in the conditions of financial recession. In the third quarter 2015 financial year (came to the end on January 23 the 2015th), both profit, and revenue of vendor were reduced.

According to analysts of WR Hambrecht investment bank in spite of the fact that the WAFL operating system was a successful product, NetApp will probably begin to lag behind competitors in the near future, considering emergence of more and more effective disk storages.

Core business of Netapp collapses under the influence of such trends as hybrid arrays of data storage, a flash memory, hyper convergent infrastructure and cloud computing. The company decided to follow these trends by improvement of the products WAFL and ONTAP, however this strategy was not productive therefore now the vendor needs new actions, experts are sure.

According to them, NetApp should follow the example of EMC and purchase some developer of categories of the products which are in the greatest demand in the market or to develop in a camp of larger corporation, such as Cisco. The last, having caught NetApp, will be able to increase the competitive level in the market of DWH, reported in WR Hambrecht.

Official comment of Netapp following: "We are sure of our strategy and a product portfolio. Priority for NetApp are companies of investment directed to growth and differentiation of business within our model".

George Kyyurian released Tom Dzhordzhens from the CEO's duty

On June 1, 2015 NetApp announced resignation of the CEO Tom Georgens. Its place was taken by the former top manager of Cisco. Change of the head of the company happened after the vendor published the weak forecast for income and announced reduction of number of staff.

According to the official statement of Netapp, Tom Dzhordzhens's place was taken by George Kurian who before the appointment was the executive vice president for products of Netapp. At a new position Kurian will focus on increase in efficiency of an operational company performance and is not going to change plans for product development, transfers the The Wall Street Journal edition.

George Kyyurian became the head of Netapp: 'In NetApp the head was replaced after the company published the weak forecast for income and announced reduction of number of staff
"The Board of Directors considers the selected strategy correct, however the new management will accelerate development of capacity of the company" — George Kyyurian noted.

Tom Dzhordzhens not only resigned as the CEO, but also stopped being the chairman of the board of directors of Netapp. This position was taken by Mike Nevens who was before the leading independent director of the company. George Kyyurian joined the board.

"These changes are directed to acceleration of the movement of the company to the next stage of development of innovations and growth. Though we intend to continue search of the CEO, we are absolutely sure of George's capability of a message the company, considering his deep understanding by Netapp and support from strong team of top managers" — Mike Nevens reported.

Change of the CEO of Netapp became known later few weeks after the company announced staff reduction for 4% and published the forecast for income which was significantly lower than expectations of Wall Street that probably and became one of reasons for leaving of Tom Dzhordzhens. According to the results of the first financial quarter which began at the end of April, 2015 NetApp predicts profit at the level of 20-25 cents on an action at revenue in $ dollars 1.28 - 1.38 billion. According to forecasts of analysts, these indicators should be 59 cents on an action and $1.46 billion respectively.[12]

SolidFire purchase

On December 21, 2015 NetApp announced purchase of the SolidFire company developing storage systems which are constructed only on a flash memory. The cost of the transaction was $870 million.

2014

NetApp is going to dismiss 600 people

  • NetApp is going to reduce number of staff by 600 people within business reorganization "in the conditions of limited IT expenses" as the company characterized it. In the application directed to the U.S. Securities and Exchange Commission (SEC) in March, 2014, the company specifies that this reorganization will give it the chance "aim the resources at key strategic initiatives and it is better to build the business in the conditions of limited IT expenses". It is expected that the company will incur reorganization expenses in the amount of 35 mln. dollars up to 45 mln. dollars, and the main part of this amount will be considered in the 4th financial quarter, the document says.

Partners in the channel consider that the future dismissals are partly caused by rather weak adoption of Clustered Data Ontap technology and also the competition in the lower segment of a product line of Netapp. VAR'Y believe that reductions should not influence sales via the channel.

Interview of TAdviser with top managers of Netapp about the strategy of the company

In September, 2014 Peter Vust, the director of Netapp of strategic partnership in CEMEA region, gave an interview of TAdviser.

In 2014 top managers of Netapp told About how products of the company from the technology point of view of TAdviser develop the director of technologies and the strategy of Netapp in EMEA region Matt Watts told. According to him, there are two key directions which his company considers when developing solutions.

One of them - "cloud" technologies: development of architecture of solutions is conducted so that they as much as possible were suitable for use by suppliers of cloud services and also allowed clients to create the cloud infrastructures which are easily integrated with public "clouds" from providers.

"Before adoption of any solutions concerning development of our technologies we always ask a question - "How Will This Solution Be Able to Help Someone to Construct "Cloud" or to Work together with "Cloud" of Provider?", - Matt Watts says.

The second aspect of technology development of DWH of Netapp Matt Watts calls development of solutions on flash drives - more productive and at the same time more expensive technology in comparison with traditional disk storage modules. NetApp develops the solutions integrating a flash memory and traditional disks, on the one hand, to provide higher performance where it is necessary, and with another - to allow to store large volumes of data on lower price, he says.

Flash memory the company is engaged in creation of DWH with use since 2009. The line of such solutions contains as the products combining traditional and a flash technology, and DWH constructed completely on flash drives. About 70% of all solutions sold to Netapp combine in themselves both types of memory, bring data into the companies, and the total amount of memory of all already shipped solutions with flash drives is about 75 PBytes.

Further NetApp is going to use more and more flash memory in the products, the director of technologies and the strategy of Netapp in EMEA region says.

One of features of technology development of the product line in NetApp call essential focus on software. A considerable part of investments goes for its development, and more than 3 thousand engineers participate in it worldwide. The new release of the single platform for DWH of Netapp Data OnTap is issued each 12-18 months.

At the same time for applications which do not require high technological capabilities which are provided by Data OnTap the company releases a separate line of DWH under the name E-Series.

2013: IBM can purchase NetApp?

At the beginning of 2013 a talk on possible purchase of Netapp - IBM corporation was resumed this time. The Bloomberg agency specified NetApp in the list of the possible purchases planned by the giant of the industry. NetApp (which, by hearsay, appears also in the list of possible purchases of Oracle and Cisco) would help to strengthen positions of IBM in the market of cloud data storage.

But such purchase would mean something bigger for IBM which is reseller of matrixes of storage NetApp under the OEM agreement of 2005 now. Purchase of this company would give to IBM a complete line unified SAN/NAS systems and also new cluster infrastructure of storage and powerful positions in the market a flash DWH.

This purchase would lead also to a rupture of the close relations of Netapp with Cisco - the competitor of IBM in the server and network markets.

Except NetApp, Bloomberg called also other possible subjects to purchase appearing in the list of IBM: the developer of analytics for Big Data Splunk and the solution designer on safety of business of Imperva.

IBM considers these purchases as a method to push sales growth which in four years made only 0.8%, Bloomberg writes.

2012: Cluster of NAS and SAN

2011

Results of year: Growth of revenue to $5.1 billion

According to the report for 2011 financial year in comparison with 2010, revenues of the company grew more than by one billion dollars and reached 5.1 billion dollars. At the same time net profit in a year (according to the GAAP standards) was 673.1 million dollars.

Engenio company takeover

In March, 2011 NetApp announced the conclusion of the final agreement about purchase of the producer of external systems of storage Engenio belonging to LSI Corporation which head office is in the city Milpitas, the State of California. The volume of the transaction is 480 million dollars. It is expected that as a result of this transaction already until the end of the second quarter of 2012 financial year the net profit of Netapp will increase counting on an action according to the GAAP standards and additional indicators (not on GAAP). It is supposed that it will strengthen positions of Netapp in such sectors of the market as video surveillance system and capture and processing of video.

Market development of storage systems is caused by two trends in creation of IT infrastructures: virtualization and high performance and also big capacity of applications. Purchase of Engenio will allow Netapp company to come to the new and quickly growing market segments, for example, connected with video technologies including capture of the continuous image and digital video surveillance and also with high-performance computing, such as programming of a genome and scientific research. The Engenio platforms will help the Netapp company having a wide partner network and confidential customer relations to provide higher performance and capacity of storage systems It is expected that by 2014 these segments in total will bring to the market additional 5 billion dollars. Besides, acquisition of Engenio will allow NetApp to expand the market share in the field of equipment manufacturing (OEM), to diversify business and to become stronger on the segments of the market which are not covered now, such as the connected to the server (SAS) and built-in drives.

Personnel and organization structure:

  • NetApp receives a talented command on behalf of the staff of Engenio having technical experience which will help to develop the Engenio platform and will allow NetApp to benefit by new market opportunities will accelerate development of the company. Besides NetApp receives the qualified specialists capable to manage the developed tested production business model and having partnership with the leading players of the industry.

  • The division of Engenio will be integrated into commercial structure of Netapp and will be engaged in new product development under the leadership of Manish Goel, the executive vice president for products of Netapp company. Netapp and Engenio sales departments will be joint as much as possible to use possibilities of the Engenio platform.

2009: Tom Dzhorzhens is the head of the company

In August, 2009 the Board of Directors of the company appointed Tom Georgens the president and the chief executive officer of Netapp.

Revenues of the company according to the results of 2009 financial year were 3.5 bln. dollars of the USA. More than 1 billion clients became users of the IT services created based on solutions of Netapp. NetApp is included into the list of Fortune companies 1000, also according to the magazine the company wins first place among hundred best employers for 2009.

2008

Network Appliance is renamed into NetApp

The rebranding which is carried out in March, 2008 became a considerable event in the history of NetApp. The company received a new logo, the motto, corporate style and strategy.

Network Appliance accepted shorter and exact name of Netapp. The new logo representing blue gate symbolizes force of Netapp in the market of data management and aspiration of the company to innovations and high quality of service of customers.

Acquisition of Onario company

In 2008 acquisition of Onario company took place: technologies of management of services and changes in DPC and storage area networks.

1993-2006

  • 1993 — the patent of technology of "instant pictures" SnapShot which allows to create instant copies of data at any moment and to reduce the recovery time of files to several seconds;

  • 1994 - Dan Warmenhoven who in the next 15 years (till 2009) headed the company joined a command of Netapp.

  • 2001 — creation of own systems of operational storage of Nearline Storage for archiving, backup and disaster recovery;

  • 2002 — creation of universal architecture of Unified Storage with the integrated support of FC SAN and NAS networks on a single platform;

  • 2003 — support by products of Netapp of the iSCSI protocol and expansion of architecture Unified Storage with inclusion of IP SAN networks;

  • 2003 — the invention of technology of ensuring fault tolerance of the disk RAID Double Parity systems;

  • 2005 — the acquisition of Decru company and a portfolio of the solution of ensuring safety of data using technologies of coding, authentication, access control and sectioning;

  • 2006 — creation of the Data ONTAP GX operating system optimized for high-performance computing;

1992: Foundation of the company

In 1992 foundation of Netapp company group of engineers David Hitz, James Lau and Michael Malcolm took place.

Notes


Stock price dynamics

Ticker company on the exchange: NASDAQ:NTAP