Why Are NetApp’s Data Fabric and Strategic Solutions Important?



Data fabric

NetApp (NTAP) believes that the data fabric is the future for data management. The combination of services, connectivity, and endpoints is a fabric. NetApp has a number of data fabric offerings, including Clustered Data ONTAP, SolidFire, and StorageGRID systems. Data fabric helps to connect the end points of these products, which help enterprises to communicate effectively.

According to a research paper by NetApp, data fabric “enables customers to respond and innovate more quickly because data is free to be accessed where it is needed most.” It enables enterprises to focus on revenue growth, customer experiences, and other service and product offerings.

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Strategic solutions account for 61% of product revenues in fiscal 4Q16

NetApp management has stated that the company is focused on its data fabric strategy and strategic solutions. These form the foundation of how NetApp enables customer success in the data-powered digital era.

In fiscal 4Q16, the strategic solutions segment accounted for 61% of the net product revenue. In fiscal 2016, strategic solutions accounted for 53% of the net product revenue and grew 21% YoY (year-over-year).

NetApp CEO George Kurian stated that “the alignment of our strategic solutions with our customers’ IT imperatives underpins our confidence that these solutions will expand our leadership in the fastest growing segments of the market.”

NetApp accounts for 3.6% of the First Trust ISE Cloud Computing Index ETF (SKYY). The top holdings of this ETF include Facebook (FB) with a 4.4% weight, Oracle (ORCL) with a 4.3% weight, and Cisco (CSCO) with a 4.3% weight.


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