Editor’s note: Led by investments in the emerging flash memory technology market, NetApp reports strong growth in quarterly earnings on Wednesday. Technology Business Research analyst Stephanie Long reports. NetApp operates a huge campus in Research Triangle Park, N.C.
HAMPTON, N.H. – In FY1Q18 (CY2Q17) NetApp achieved $1.3 billion in revenue, representing 2.4% year-to-year growth. Strength in NetApp’s all flash arrays, which grew a reported 95% in CY2Q17, supported these gains.
In 2Q17, NetApp’s strategic solutions grew 22% year-to-year to $500 million or 69% of product revenue; more than offsetting the 10% declines in its mature solutions segment.
- VIDEO: Check out an overview of NetApp’s flash offerings at https://www.youtube.com/watch?v=v8anYPGPnSk
TBR believes this ongoing shift of NetApp’s product mix in favor of its strategic solutions positions NetApp for long-term gains, especially as the vendor continues to focus on the second phase of its restructuring efforts, which concentrates on controlling costs and improving margins.
In 2Q17, NetApp noted it targeted investments at its largest opportunities in an effort to deliver on its second phase of restructuring.
TBR believes NetApp differentiates from peers in cloud with its longstanding recognition and deep knowledge in the storage market as one of the few remaining large pureplay storage vendors.
Its partnership with Cisco is another advantage the vendor has, as it provides NetApp with an avenue into the holistic converged market. NetApp’s recent emergence in the hyperconverged space will prove long-term successful, but the vendor still has work to do to market its hyperconverged solution as a desirable alternative to existing hyperconverged solutions on the market offered by competitors.
TBR notes NetApp’s hyperconverged solution will be made generally available during CY2017.