NetApp, Inc., is a computer storage and data management company specializing in data and storage management solutions for medium to large-size businesses. This past December NetApp made the news in a big way when it launched its all-flash storage array, the EF550. This was especially newsworthy because it’s leading competitor EMC announced just one week earlier that it was releasing it’s version of the array, the Xtremlo. This was not too big of a hit for NetApp, as it has already maintained a presence in the market with the EF550’s predecessor, the EF540. Because of this along with it’s ability to stay on the cutting edge of technology, I believe NetApp will continue to be a top leader in the industry.
Making it’s money by selling storage hardware and storage software to businesses, NetApp's storage hardware helps their customers manage data more efficiently and securely. The disks are used for large, data-intensive applications which include e-mail, inventory, supply chain, backups and regulatory & compliance information. NetApp's storage software allows it’s customers to use many different features related to data storage such as back-up and recovery, replication and retention. NetApp is a Fortune 500 company, was ranked #6 on FORTUNE Magazine’s “100 Best” list, and #3 on the Great Place to Work Institute’s “World’s Best Multinational Workplaces” List. Competing in the data-storage industry and with $6.3 Billion in Revenue, NetApp ranks second in market capitalization in the industry behind only EMC Corporation which is the companies’ number one competitor. Other major competitors of NetApp include IBM, Hitachi, HP, Seagate Technology, and Western Digital. NetApp used Information Systems Technology (IT) very effectively In December, 2013 when it launched its all-flash storage array, the EF550. In an article entitled; “NetApp’s All-Flash Array To Take On EMC In Fast Growing Market”, Trefis Team reports that “The announcement was made a week after competitor EMC launched its own Flash Array, the Xtremlo”. This was significant for NetApp because it already has an earlier version of the flash array, the EF540.
Customers of NetApp can take advantage of simplifing their IT infrastructure, boosting their efficiency and flexibility, and advancing their data centers to support their business’ goals. NetApp complements it’s customers’ data storage solutions with innovative services. These new technologies which NetApp uses to create data and cloud storage solutions is creating a new way for companies to store and protect their data. A new demand is arising by companies worldwide and changing the way of data storage all together. All-flash arrays are storage systems that contain multiple solid state drives instead of spinning hard disks which uses high performance input output per second (IOPS) storage systems which produces a better throughput compared to traditional hard disk drives. NetApp is among the top three data storage companies, along with EMC and IBM, that is switching to all-flash arrays. The rapid growth of Data and cloud storage by companies like NetApp have created a struggle for companies that have not yet transitioned from traditional disk drives. “Storage companies are struggling to achieve the required high performance with the use of traditional hard disk drives in their own data centers. Flash arrays, which are essentially storage systems that contain multiple flash (or solid-state) storage units rather than hard disks, are much more suited to industry requirements. The newly developing flash array market is expected to grow at a 58.5% and to become a $1.2 billion market by 2015, according to International Data Corporation (IDC)”.
Seeing the popularity of EF540 and other E-series products, Trefis Team expects NetApp to grab a significant share in the flash array market going forward. “NetApp’s market share in the overall external storage segment has gone up from 14% last year to 15% this year. A 2% gain in market share in the storage hardware market due to flash array sales by the end of our forecast period could lead to a 4% upside to our $45 valuation of the company. The flash storage array may not immediately impact near-term earnings, but the fast-growing enterprise storage segment could play a vital role in the long run”. Additionally, NetApp is planning to launch its FlashRay solution next year, which is an operating system that minimizes wear for flash arrays and optimizes their performance. In conclusion, NetApp is one of the leading innovators of it’s industry and is continuing to do big things while staying on the cutting edge of technology. The companies launch of it’s second all-flash array along with it’s business model for the future solidifies a spot for NetApp among the top data storage companies in the world. I believe NetApp will continue to be a leader in it’s industry while always working closely with the newest technologies.