Why NetApp Is Optimistic about All-Flash Arrays

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Can NetApp Maintain Outperforming Estimates in 2018? Part 3 OF 7

Transition toward all-flash arrays

Over the last two years, NetApp (NTAP) has transitioned away from its experienced options that have noticed income decline to high-development segments these types of as all-flash arrays (or AFA), hybrid cloud, and converged and hyper-converged infrastructure. Strategic Answers now account for 69% of internet merchandise income and rose 23% YoY (yr-over-yr) in fiscal 2Q18.

Demand from customers for AFA is rising as enterprises are modernizing current info centers as perfectly as creating subsequent-technology info centers to decreased the price of possession and make improvements to the pace and responsiveness of critical enterprise apps.

Why NetApp Is Optimistic about All-Flash Arrays

NetApp wishes to choose gain of this option and aims to improve sector share with its cloud-integrated all-flash resolution. NetApp has constantly crushed level of competition in the AFA sector over the last yr.

Higher income development

In fiscal 2Q18, NetApp’s AFA business—which involves All-Flash FAS (Material-Hooked up Storage), EF, and SolidFire products—rose 60% YoY to an annualized run level of $1.7 billion. CEO George Kurian said, “Our power in flash is also driving our good results in SAN and converged infrastructure markets. Our clustered storage options have substantial and structural technological pros over competitors’ SAN products.”

NetApp’s management in AFA in enabling the agency to attain sector share in the SAN (storage region network) sector. NetApp is wanting to receive new shoppers as perfectly as focus on competitors’ current shoppers in the SAN house.

NetApp’s all-flash FlexPod served the organization bolster its second-location position in the converged infrastructure sector. As you can see above, the other big players in the AFA sector include Dell-EMC, Hewlett Packard Organization (HPE), Pure Storage (PSTG), and IBM (IBM) with shares of 29%, 17%, 12%, and 7%, respectively.

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