NetApp

NetApp also creates hardware solutions software for storing, maintaining, protecting, and archiving data. The company developed the concept of direct access to data on the network, which was based on the development of a new one operating system Data ONTAP that provides it. This decision started the creation of storage systems the NAS market (). Network Attached Storage

NetApp's service-oriented infrastructure is built on a unified multi-protocol platform that integrates server and network solutions, DSS solutions, and data management tools. The set of solutions based on a service-oriented infrastructure includes: Exchange and SharePoint as a service, infrastructure as a service (IaaS), desktop as a service (DaaS), DSS, data protection.

One of the key areas of NetApp's strategy is cloud technologies: the development of a solution architecture is carried out in such a way that they are as suitable as possible for use by cloud service providers, and also allow customers to create infrastructures that are easily integrated with public "clouds" providers. In addition, tenants of cloud capacity can optimize the performance of networks and storage, reduce the cost of their maintenance, and simplify administration.

Performance indicators

2022:10% increase in sales to $6.32 billion

In fiscal 2022, NetApp raised $6.32 billion against $5.74 billion in 2021. Thus, annual sales increased by about 10%. This data was released by the company in June 2022.

Almost all revenues (about $5.92 billion) came from the Hybrid Cloud segment, which is a mixed storage environment (a combination of local infrastructure, private cloud and public cloud, like Amazon Web Services or Microsoft Azure). Sales of public cloud solutions NetApp for the 12-month reporting period, closed on April 29, 2022 calendar year, reached $396 million against $199 million a year earlier.

Moor Insights & Strategy analyst Steve McDowell, in a conversation with SiliconANGLE, noted that NetApp's cloud business continues to be a bright spot for a company that is well implementing its strategy in this market. At the same time, the expert warned that the increased attention to cloud technologies is distracting the company from its main business - the production of IT equipment.

At the end of 2022, NetApp earned $2.99 billion on the sale of products against $3.28 billion a year earlier. Support services brought the company $2.28 billion in annual revenue (a decrease from $2.34 billion in 2021), and all kinds of professional and other services added another $277 million to the vendor's turnover.

NetApp sales of storage systems built exclusively on flash memory (all-flash) reached an annual level of $3.2 billion by the end of April 2022, which is 12% more than a year earlier. The company's annual revenue level in the public cloud services market grew by 68%, reaching $505 million . The volume of orders on an annualized basis increased by 16%, to $2.02 billion.

NetApp's net profit in 2022 amounted to $937 million, an increase of more than $200 million compared to profit a year ago. The annual cash flow from core activities decreased from $1.33 billion to $1.21 billion.^[1]

Business in Russia

Main article: NetApp Russia and CIS

The opening of the NetApp office in Russia took place in 2004. One of the factors that influenced the decision in 2004 on the need for the company's presence in the Russian market was familiarity with the Eastern European market and its needs. In addition, Russia is one of the group of countries with the fastest developing economies, the so-called BRIC block (BRIC - Brazil, Russia, India, China). By the time it entered the Russian market, the company had taken a leading position in Western Europe in terms of DSS supplies, occupying the first and second places in terms of market share. The company's growth rate required new markets.

Acquisitions of companies

Main article: NetApp Acquisitions

History

2023:8% staff cut due to lack of money

On January 31, 2023, NetApp announced the reduction of 8% of its staff and linked this step to macroeconomic problems and a desire to optimize costs. Employee layoffs will occur in several regions, including EMEA and Asia Pacific.

By the end of January 2023, NetApp employs about 12 thousand people around the world, thus, the dismissal will affect about 960 people. NetApp said it will begin the reduction process in February 2023 and is expected to take on costs ranging from $85 to $95 million.

For January 2023, NetApp spends significantly less money on IT, and this puts great pressure on the technology business. During the COVID-19 pandemic, companies working in the field of cloud services saw a huge surge in demand - both from people who simply use more digital channels in their work and leisure, and from enterprises investing in the so-called "digital transformation" and updating systems to work on new technologies. But in general, even cloud companies are not immune to the recent downturn and subsequent drop in demand for their products.

According to Reuters, NetApp CEO George Kurian explained future layoffs by the fact that against the background of the crisis, the company must be agile, fulfill its immediate obligations, while positioning itself for long-term success. This means honing the company's strategy to focus on the areas of the business that are best suited for growth, tailoring NetApp's cost structure to suit focus and market conditions, and increasing the team's performance bar.

Previous large-scale reductions took place in NetApp in 2016: the company laid off first 12%, and then another 6% of its staff in 2017. Then these actions were also explained by the need to comply with market changes.^[2]

2021: Revenue growth to $5.74 billion, profit - $730 million

As a result of its work in fiscal 2021, NetApp earned $5.74 billion in revenue, which exceeds the one-year-old figure of $5.41 billion. One of the catalysts for the company's revenue growth was public cloud services.

NetApp CEO George Kurian told shareholders that 2021 fingod was marked by a period of stable growth for the company.

Our rise highlights the benefits we provide to customers in a hybrid, multi-cloud world. We are increasing our share in key storage markets, and our public cloud services are on such a scale that they have a positive impact on orders and revenue growth for the company, "he said.

NetApp said that in fiscal 2021, the company raised $2.99 billion from the sale of products, which almost exactly corresponds to the result of a year ago. Revenues from software support services increased from $1.03 billion to $1.28 billion, and revenue from support for equipment and other services in this segment increased from $1.38 billion to $1.47 billion.

NetApp also reported that sales of storage systems built exclusively on flash memory (all-flash) from the company by the end of April 2021 reached an annual level of $2.9 billion, which is 11% more than a year earlier. The company's annual income level in the public cloud services market grew by 171%, reaching $301 million. The volume of orders on an annualized basis increased by 12%, to $1.74 billion.

Approximately 54% of NetApp's annual revenue came from the Americas, including 43% from commercial customers and 11% from American government agencies. The share of the region EMEA in the vendor's revenue amounted to 31%.

NetApp's net profit in fiscal 2021 amounted to $730 million, down from $819 million in 2020.^[3]

2020

Revenue - $5.41 billion

In fiscal 2020, NetApp's revenue amounted to $5.41 billion, down from a year ago ($6.15 billion) due to the COVID-19 coronavirus pandemic.

Sales of data storage systems based exclusively on flash memory in the reporting year, which ended at the company at the end of April 2020 calendar year, turned out to be $2.6 billion, an increase of 12%.

Revenues from cloud services used to work with data increased by 113% on an annualized basis to reach $111 million. Revenue in the private cloud segment was $408 million, up 19%.

NetApp's net profit in fiscal 2020 amounted to $819 million, decreasing relative to the profit of $1.17 billion recorded at the end of the previous year. The decline in profits was largely due to high costs.

In 2020, NetApp returned $1.85 billion to shareholders in the form of share buybacks and dividends. The company has cash and cash equivalents in the amount of $2.88 billion.

The structure of annual revenue for the sale of products accounted for $3 billion, software support - $1 billion, equipment support and other services - $1.38 billion. A year earlier, these indicators were $3.76 billion, $946 million and $1.45 billion, respectively.

NetApp's lion's share of revenue remains concentrated in the Americas (predominantly the United States). In 2020, this region brought the company 53% of revenue, EMEA countries - 32%, Asia-Pacific region - 15%. The report notes that state orders in the United States in the total turnover of the vendor reached 12% at the end of the year.

As for the ways of organizing sales, the partners provided NetApp with 79% of revenue in 2020. The remaining 21% came from direct sales carried out by the company itself.^[4]

Dismissal of 5.5% of the state due to the pandemic

On August 25, 2020, it became known that NetApp will cut about 5.5% of its staff in order to reduce costs during the coronavirus pandemic.

NetApp is redistributing resources and investments in order to use them more effectively for the success of the company in the long term, the company told The Register.

We continue to focus on markets where we have as a significant presence and where we have clear advantages over competitors. These are mainly storage software and cloud services markets, NetApp added.

The developer did not specify exactly where he plans to fire employees. The company has 8 offices in various cities and states in the United States. The size of the staff is 11 thousand people. Thus, about 600 will fall under the reduction.

The downsizing is one stage of the company's turnaround, which began some time ago, according to a NetApp spokesperson. The goal of this transformation is to focus on products that help customers digitally transform their business.

The layoffs mainly affect marketing and development departments, including employees of the former company SolidFire, a manufacturer of flash masses for cloud providers, which NetApp acquired in 2015. In comments on Internet forums, employees write that, apparently, the reduction in SolidFire personnel suggests that NetApp has extracted everything it could from this acquisition.

In recent years, by August 2020, NetApp has focused on releasing storage software capable of combining local and cloud storage into single hybrid systems. At the same time, the company released the Kubernetes distribution for automating deployment, scaling containerized applications on hyper-converged SolidFire solutions.

While NetApp continues to actively collaborate with, Cisco releasing joint solutions for, data centers FlexPod other attempts to enter the hardware segment have failed, and the company has tempered its ambitions.^[5]

2019: Revenue growth 4% to $6.15 billion

In the 2019 fiscal year, which closed for NetApp on April 26, 2019 calendar, the company's sales amounted to $6.15 billion, rising 4% compared to 2018.

NetApp products sales reached $3.76 billion in revenue versus $3.53 billion a year earlier. Revenues from software support services increased from $902 million to $946 million. Support for IT equipment and other services brought the American manufacturer an annual turnover of $1.45 billion, which is slightly less than a year ago ($1.49 billion). Sales of storage systems based only on flash memory increased by 25% on an annualized basis.

The company still receives the most revenues in North America - in 2019, the share of this market in NetApp's total revenue amounted to 56%, an increase of 2 percentage points compared to 2018. Approximately 44% of the turnover fell on orders from corporate clients in the United States, 12% - on purchases of government agencies and companies from the same country.

Sales in EMEA countries took 30% of the total in 2019, which is 2 percentage points less than a year earlier. The share of the Asia-Pacific region was unchanged and remained at 14%.

NetApp is increasing direct sales: in fiscal 2019, their share was equal to 24% against 76% of the income that partners bring. In 2018, the ratio was 21% to 79%, respectively.

In fiscal 2019, NetApp recorded a net profit of $1.17 billion, several times the profit it made a year earlier.

On May 23, 2019, when NetApp published its financial statements, the company's shares fell in price by more than 5% in electronic trading after the exchange closed. Quotes fell because profits and sales were below market expectations, as was the forecast.^[6]

2018: Revenue of $6 billion; 40% came from flash storage

In fiscal 2018, NetApp's revenue reached $5.91 billion, up 7% from the previous year. However, net profit decreased several times - from 509 to 76 million dollars.

The decline in profits is due to the tax reform in the United States, due to which the company spent $850 million at a time to return income to its homeland and other events related to the update of American tax legislation.

At the end of 2018, NetApp earned about $3.5 billion in revenue on the sale of products, which is almost $500 million more than a year earlier. Revenues from software support services decreased from $965 million to $958 million. Support for IT equipment and other services brought the American manufacturer revenue in the amount of $1.5 billion, which is slightly more than a year ago. Annual sales of flash storage devices amounted to $2.4 billion - 43% more than in fiscal 2017.

Most of NetApp's revenue continues to come from countries in the Americas (predominantly the United States), in which the company generated about 54% of revenue in fiscal 2018. EMEA and Asia-Pacific accounted for 32% and 14%, respectively. On an annualized basis, the distribution of the vendor's turnover has practically not changed.

NetApp's core business is built around partners who provided the company with 79% of annual revenue. On direct sales, it earned 21%, which is 1 percentage point less than a year earlier.

NetApp also said in a report that the company is experiencing the highest growth rate among the top five enterprise-class external DSS vendors. The same applies to storage platform markets for cloud, SAN, and integrated infrastructures.^[7]

According to the results of the first quarter of the 2018 calendar year, NetApp ranks first in terms of All-Flash market share in Russia (more), Austria, Germany, Spain, Italy, the Netherlands, Finland, France and Switzerland.

NetApp also continues to hold the lead in the EMEA All-Flash segment for the fifth consecutive quarter. In the first quarter of 2018, the market share was 28.7%, the total revenue from the sale of All-Flash solutions was $173.5 million.

2017

Profit growth doubled to $509 million; revenue - $5.52 billion

On May 24, 2017, NetApp presented business results for fiscal year 2017. The company's profits doubled thanks to strong sales of flash storage systems.

For the 12-month reporting period ended April 28, 2017, NetApp sales reached $5.52 billion against $5.55 billion a year earlier. Net profit was $509 million, while in fiscal 2015, profit was measured at $229 million.

Our constant focus and disciplined management has provided us with another strong quarter, "comments NetApp CEO George Kurian. - We reversed the dynamics, returning the company to revenue growth and fulfilling all obligations for the 2017 fiscal year. By introducing innovations in traditional markets and corporate technologies in new areas, we are increasing our market share, expanding our presence in target markets and creating new opportunities for NetApp.

It follows from the NetApp report that in fiscal 2017, the sale of products brought the company more than $3 billion in revenue, which is slightly more than the result of the previous year. Revenue from software support services climbed from $949 million to $965 million. Support for IT equipment and other services provided the vendor with revenue in the amount of $1.5 billion. Annual sales of flash storage devices jumped 140%, reaching $1.7 billion.

NetApp received about 78% of its revenue from partners. The largest market for the company remains North and South America: there the company received 56% of annual turnover, including 13% of customers in the American public sector. The share of countries EMEA (, Middle Europe East,) Africa and the Asian-Pacific region amounted to 31% and 13%, respectively.

After the publication of the financial statements, NetApp quotes fell by 5%. Over the previous three months, shares fell 3.4%, which analysts attribute to the escalating competition in the storage products market.^[8]

Google's $319 million sale of Silicon Valley offices

In the fall of 2017, NetApp began consolidating its campus in Sunnyvale, California, including by selling several buildings to reduce costs. The company told the Valley Business Journal that it will move all of its employees to the main building after selling three offices for $318.7 million to Google, which has previously acquired dozens of properties in the surrounding area.

The structures sold were located at NetApp's Sunnyvale headquarters at 475 and 495 East Java Drive and 1130 Geneva Drive. The company confirmed it had sold buildings 1, 3 and 4, as well as a vacant lot adjacent to the building to a fourth home.

These transformation efforts included estimating the total area of our properties in order to optimize performance and reduce costs, a NetApp spokesperson said. - Our employees in Sunnyvale will be located in structures 6, 7, 8 and 9, which will provide the company with wide space to continue growth in the future.

NetApp declined to comment on whether the company plans to cut jobs as a result of strategic consolidation. On the site, NetApp's vacancies section says the company had more than 100 open positions in Sunnyvale in September 2017. The company at the time was Silicon Valley's 18th largest IT employer, according to a Business Journal study. In the first half of 2017, NetApp laid off 160 employees in Sunnyvale, saying the cuts were part of an "internal restructuring," according to California state documents. The positions being liquidated included financial, business analysts, engineers and technical directors. The layoffs also affected business operations personnel and product managers.

NetApp is struggling to compete with companies like Dell Technologies and is likely an acquisition target, according to Enderle Group chief analyst Rob Enderle. Dell Technologies is putting very heavy pressure on the market and forcing many companies to rethink their strategies.^[9]

NetApp expands alliance with Microsoft

On June 22, 2017, NetApp announced plans to expand its strategic alliance with Microsoft. Among the goals of the alliance is to help businesses accelerate the transition to digital technologies and more actively use the capabilities of the hybrid cloud.

NetApp plans to expand its partnership with Microsoft to include hybrid cloud-based data management services. ON ONTAP

In the field of cooperation between NetApp and Microsoft:

• Develop ONTAP-based cloud-based data management services to be offered in the Azure cloud.
• engineering collaboration to offer architectural solutions that accelerate the migration of enterprise applications to Azure and Azure Stack and help customers leverage data capabilities.
• Integration of NetApp's FabricPool solution, which reduces cold storage costs by automatically moving from the local level to the cloud with Azure Blob Storage.
• providing Azure as a backup location for NetApp's Cloud Control SaaS, which offers backup, archiving, and compliance services to improve the efficiency of Microsoft Office 365.

Businesses rely on Microsoft's cloud innovation and its Azure cloud service portfolio to stay competitive in the digital age. We are taking a step towards expanding our strategic alliance by opening access to NetApp data management services on Azure cloud networks and providing support for virtualization and private cloud deployment. Anthony Lye, Senior Vice President, Cloud Business Development at NetApp

NetApp offers hybrid cloud data management solutions that support Azure:

• NetApp ONTAP Cloud for Azure combines data management capabilities with deduplication, compression, and backup.
• NetApp AltaVault hybrid cloud solutions for Azure reduce time, cost, and risk by backing up cloud workloads. Using client backup software, AltaVault deduplicates and quickly transfers data to Azure Storage.
• NetApp Private Storage for Microsoft Azure provides a cloud-based storage architecture that enables enterprises to build a flexible infrastructure that combines Azure's scalability and flexibility with NetApp's local storage management and performance capabilities at a co-location.

2016

Active collaboration with SAP

• More than 2,500 + customers have deployed SAP solutions on NetApp
• Some major SAP solutions run on NetApp®: 20, 30TB, now 88 TB DBs
• Largest storage provider for SAP and Oracle®
• Prevailing Designs for SAP

• SAP provides more than 30 SaaS applications for thousands of NetApp-based customers
• SAP Center of Excellence (CoE) uses NetApp for PoCs, Value Prototyping, Virtual Appliance Factory
• Co-Innovation Labs (COILs): Sponsored and bundled by NetApp
• Deployed in 11 SAP HANA Enterprise Cloud (HEC)
• Deployed in 7 SAP SaaS cloud

Reduction of 6% of the staff - 650 people

In early November 2016, it became known about the next cuts in NetApp. An American company is laying off people to save money amid changes in the storage technology market.

According to the CRN IT portal, citing a statement from NetApp, the company will reduce its headcount by 6% (about 650 people). Personnel reorganization costs, which are planned to be completed by the end of April 2017 (at this time NetApp's fiscal year ends), are estimated at $50-60 million.

The Wall Street Journal newspaper notes that this is the third wave of cuts in NetApp, in the previous two, the vendor's staff decreased by about 14%.

According to NetApp spokesman Judy Radlinsky, most of the employees who fell under the reduction were notified on November 3, 2016. In some overseas offices, layoffs will be preceded by talks with local unions, she added.

NetApp reports that the company is laying off people as part of an ongoing business transformation involving the company's focus on "growing" flash-based disk storage markets, a new generation of data centers and hybrid cloud solutions.

NetApp remains "confident that with a robust business," it will be able to return "to moderate growth" in fiscal 2018, the company said in a statement.

NetApp has high hopes for flash storage, which can be judged at least by the acquisition of SolidFire for $870 million at the end of 2015. NetApp is belated with entry into this market, but its vast customer base is quite stable, and customers still believe in the company's products, said Eric Collins, CTO of PCPC Direct (NetApp partner).^[10]

Reduction of 12% of the state - 1,500 people, stock crash by 38% for the year

On February 17, 2016, NetApp announced another job cuts. This time, about 1,500 people will leave the company.

According to a document sent by NetApp to the US Securities and Exchange Commission (SEC), by the end of the first quarter of fiscal year 2017 (starting at the end of April 2016 calendar year), the company's staff will decrease by 12%.^[11]

The disk storage manufacturer did not specify exactly how many people would be fired. By the end of October 2015, NetApp had 12,300 employees, so that as a result of a new wave of reductions, about 1,500 work positions could be eliminated.

It is planned to spend about $60-70 million in the fourth quarter of fiscal 2016 to pay compensation to dismissed employees and other goals related to staff reductions. NetApp says the move is part of a massive restructuring that involves streamlining its core business and cutting operating costs. The company hopes that by the end of fiscal 2017 it will be able to achieve savings of $400 million.

According to Fortune, NetApp, along with other major data center storage manufacturers, has faced a number of difficulties in adapting to the way corporate customers are paying more and more attention to cloud services. Many analysts note that such companies spend less money on the purchase of IT equipment, preferring to lease the computing power of Amazon, Microsoft, etc.^[12]

Against this background, NetApp is carrying out a restructuring, during which the company carried out a personnel purge at least twice in 2015: in May and August, a 4% reduction in staff was announced.

By February 17, 2016, NetApp shares fell 38% over the previous 12 months. On the day of the announcement of job cuts of 12%, the company's quotes almost did not change in any way compared to the previous day.

2015

Falling revenues and cutting 4% of employees

On May 20, 2015, NetApp's financial year 2015 report was published. At the same time, the company announced job cuts.

According to the results of the 12-month reporting period, which ended on April 25, 2015, NetApp's revenue amounted to $6.1 billion against $6.3 billion a year earlier. Net profit during this time decreased to $560 million from $638 million.

NetApp's financial downturn is due to falling sales of disk storage to OEMs and increased competition in a market where the American company has to confront not only the EMC leader, but also young players like Nimble Storage and Pure Storage who offer low-cost flash-based devices.

According to Tom Georgens, Chairman of the Board and CEO of NetApp, the business of all DSS manufacturers is under negative pressure from the trend in which customers switch to cloud storage instead of buying equipment and services to maintain it.

Under these circumstances, NetApp decided to make changes to its range, focusing on promoting a software-configurable operating system for storage systems NetApp Clustered Data ONTAP. However, many large customers did not appreciate the innovations, preferring to wait until the vendor releases new versions of products endowed with the functions they need, Georgens said.

"We underestimated the

complexity of the transition. This is completely our fault, and we intend to fix it, "said the head of NetApp

.

Along with the publication of the financial statements, NetApp announced a 4% reduction in headcount. About 500 employees are scheduled to be laid off by the third quarter of fiscal 2016. The costs of this personnel reorganization will range from $25 million to $35 million, most of the costs will be for the first financial quarter.

According to Georgens, the company expects to cut costs and gradually increase sales of new products, thanks to which it will be possible to return to revenue growth in the second half of the fiscal year.^[13]

NetApp to cut thousands of jobs

In April 2015, it became known about the layoffs in NetApp. According to analysts, the company is in a difficult position, so it needs radical changes.

In February 2015, NetApp Chairman and CEO Tom Georgens warned employees about possible job cuts that the top manager said the company needed to complete financial tasks.

Tom Georgens did not even name the approximate number of employees who could leave the company. According to the source of The Register, as part of the planned restructuring, NetApp's headcount may be reduced by a third. As of April 15, 2015, the company employs about 12,600 people.^[14]

The previous wave of layoffs at NetApp was announced in March 2014. Then it was about the liquidation of 600 working positions or 5% of the state, for which it was planned to spend from $35 million to $45 million. Prior to that, the company laid off 900 people in 2013.

Previous layoffs at NetApp, as well as those that the media learned about in April 2015, are part of a cost-cutting program that the company is pursuing amid a financial downturn. In the third quarter of fiscal year 2015 (ended January 23, 2015), both profit and revenue of the vendor decreased.

Despite the WAFL operating system proving to be a successful product, NetApp is likely to start lagging rivals in the near future given the advent of increasingly efficient disk storage, according to analysts at investment bank WR Hambrecht.

NetApp's core business is being disrupted by trends such as hybrid storage arrays, flash memory, hyper-converged infrastructure, and cloud technologies. The company decided to follow these trends by improving its WAFL and ONTAP products, but this strategy turned out to be ineffective, so now the vendor needs new actions, experts are sure.

In their opinion, NetApp should follow the example of EMC and acquire some developer of the categories of products in greatest demand in the market, or develop in the camp of a larger corporation such as Cisco. The latter, having got NetApp, will be able to increase its competitive level in the DSS market, WR Hambrecht said.

NetApp's official comment is: "We are confident in our strategy and product portfolio. Investments and business differentiation within our model remain a priority for NetApp. "

George Curian replaced Tom Georgens as CEO

On June 1, 2015, NetApp announced the resignation of CEO Tom Georgens. His place was taken by the former top manager of Cisco. The change in the head of the company occurred after the vendor announced a weak forecast for income and reported a reduction in the number of personnel.

According to an official statement from NetApp, Tom Georgens was replaced by George Kurian, who was NetApp's executive vice president of product prior to his appointment. In his new position, Curian will focus on improving the efficiency of the company's operating work and is not going to change plans for product development, reports The Wall Street Journal.

"The board of

directors considers the chosen strategy to be correct, but the new management will accelerate the development of the company's potential," said George Curian.

Not only has Tom Georgens stepped down as CEO, he has stopped being chairman of NetApp. This position was taken by Mike Nevens, who was previously the leading independent director of the company. George Curian joined the board.

"These

changes are aimed at accelerating the company's movement towards its next stage of innovation and growth. Although we intend to continue the search for the CEO, we are absolutely confident in George's ability to lead the company, given his deep understanding of NetApp and support from a strong team of top managers, "said Mike Nevens

.

The change of NetApp CEO became known a couple of weeks after the company announced a 4% reduction in staff and released a revenue forecast that was significantly below Wall Street expectations, which was probably one of the reasons for the dismissal of Tom Georgens. According to the results of the first financial quarter, which began at the end of April 2015, NetApp predicts profit at 20-25 cents per share on revenue of $1.28-1.38 billion. dollars According to analysts, these figures should be 59 cents per share and $1.46 billion, respectively.^[15]

2014

NetApp plans to lay off 600 people

• NetApp plans to reduce headcount by 600 as part of a business overhaul "in the face of limited IT costs," as the company described it. In its March 2014 filing with the U.S. Securities and Exchange Commission (SEC), the company points out that this realignment will give it the ability to "target its resources to key strategic initiatives and better build its business in the face of limited IT spending." The company is expected to incur reorganization costs ranging from $35 million to $45 million, and the bulk of this amount will be accounted for in fiscal quarter 4, the document says.

Channel partners believe that the upcoming layoffs are partly due to the relatively weak adoption of Clustered Data Ontap technology, as well as competition in the lower segment of the NetApp product line. VARs believe the cuts should not affect sales through the channel.

TAdviser interview with top NetApp executives about the company's strategy

In September 2014, Peter Wust, NetApp's director of strategic partnerships in the CEMEA region, was interviewed by TAdviser.

In 2014, NetApp top managers talked about how the company's products are developing from a technological point of view TAdviser was told by the director of technology and strategy for NetApp in the region (EMEA Matt Watts Matt Watts). According to him, there are two key areas that his company takes into account when developing solutions.

One of them is "cloud" technologies: the development of a solution architecture is carried out in such a way that they are as suitable as possible for use by cloud service providers, and also allow customers to create cloud infrastructures that are easily integrated with public "clouds" from providers.

"Before making any decisions regarding the development of our technologies, we always wonder -" How can this decision help anyone build a "cloud" or work together with the provider's "cloud"?, " Matt Watts says.

The second aspect of the technological development of NetApp DSS, Matt Watts calls the development of solutions on flash drives - more efficient and at the same time more expensive technology compared to traditional disk drives. NetApp is developing solutions that combine flash memory and traditional drives to, on the one hand, deliver better performance where needed, and, on the other, allow more data to be stored at a lower cost, he says.

The company has been creating DSS using flash memory since 2009. The line of such solutions contains both products that combine traditional and flash technology, and DSS built entirely on flash drives. About 70% of all solutions sold by NetApp combine both types of memory, provide data in the company, and the total memory of all solutions already shipped with flash drives is about 75 PB.

In the future, NetApp plans to use more and more flash memory in its products, says NetApp's EMEA chief technology and strategy officer.

One of the features of the technological development of its product line in NetApp is called a significant focus on software. A significant part of the investment is allocated for its development, and more than 3 thousand engineers around the world participate in it. The new release of its single platform for NetApp Data OnTap DSS is released every 12-18 months.

At the same time, for applications that do not require the high technological capabilities that Data OnTap provides, the company releases a separate line of DSS called E-Series.

2013: Can IBM buy NetApp?

In early 2013, talk resumed about a possible purchase of NetApp - this time by IBM. Bloomberg listed NetApp on a list of possible purchases planned by the industry giant. NetApp (which is rumored to also appear on Oracle and Cisco's list of possible purchases) would help strengthen IBM's position in the cloud storage market .

But such a purchase would mean something more for IBM, which is now a reseller of NetApp storage matrices under an OEM agreement from 2005. The purchase of this company would give IBM a full line of unified SAN/NAS systems, as well as a new clustered storage infrastructure and a significant position in the flash storage market .

This purchase would also lead to the severance of NetApp's close relationship with Cisco, IBM's competitor in the server and network markets.

In addition to NetApp, Bloomberg also named other possible purchase objects on IBM's list: analytics developer for Big Data Splunk and business security solution developer Imperva.

IBM sees these purchases as a way to push sales growth, which amounted to only 0.8% in four years, writes Bloomberg.

2012: NAS and SAN Cluster

2011: Revenue growth to $5.1 billion

According to the report for fiscal year 2011 compared to 2010, the company's revenues grew by more than a billion dollars and reached $5.1 billion. At the same time, net income for the year (according to GAAP standards) amounted to $673.1 million.

2009: Tom Georgens - Head of Company

In August 2009, Tom Georgens was named President and CEO of NetApp by the company's board of directors.

The company's revenues for fiscal year 2009 amounted to $3.5 billion. USA More than 1 billion customers have become users of IT services based on NetApp solutions. NetApp is included in the Fortune 1000 list of companies, and according to the magazine, the company ranks first among the hundred best employers in 2009.

2008: Network Appliance renamed NetApp

A significant event in the history of NetApp was the rebranding held in March 2008. The company received a new logo, motto, corporate style and strategy.

Network Appliance has adopted a shorter and more accurate name for NetApp. The new blue gate logo symbolizes NetApp's strength in the data management market and the company's commitment to innovation and customer experience.

1993-2006

• 1993 - SnapShot "snapshot" technology patent, which allows you to create snapshots of data at any time and reduce file recovery time to several seconds;

• 1994 - Dan Warmenhoven joined the NetApp team, who headed the company for the next 15 years (until 2009).

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

• 2002 - Create a Unified Storage architecture with integrated FC SAN and NAS support on a single platform

• 2003 - NetApp supports iSCSI and extends the Unified Storage architecture to include IP SANs

• 2003 - invention of technology for ensuring fault tolerance of disk RAID Double Parity systems;

• 2004 - creation of the Data ONTAP 7G operating system, which served as the foundation for grid storage networks;

• 2006 - Create a Data ONTAP GX operating system optimized for HPC.

1992: Founding of the Company

In 1992, NetApp was founded by a group of engineers David Hitz, James Lau and Michael Malcolm.

Notes