This Area of Storage Is Booming for NetApp



NetApp aims to transition customer storage needs

NetApp (NTAP) has repeatedly stated that flash storage plays an important role in the IT (information technology) transformation of businesses. The adoption of flash storage has increased during the past few quarters as companies look to gain competitive advantages over peers through greater speeds on key business applications. What this means is that hard disk installations are being replaced by flash, thereby making flash the primary option for on-premise deployments.

This transition from hard disk to flash is extremely important because enterprise data management and data protection capabilities are essential to customers. NetApp has stated that it is “uniquely positioned to enable customers to consolidate on to flash and create All-Flash data centers.”

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NetApp’s all-flash array revenue rises

According to IDC’s (International Data Corporation) Worldwide Quarterly Enterprise Storage Systems Tracker, NetApp is growing faster than the overall all-flash array market. NetApp gained significant market share in 1Q16.

IDC’s research report states that NetApp’s all-flash array revenue rose by 238.2% YoY (year-over-year) in 1Q16. This was 2.7x faster than the overall market growth of 87.2% YoY. NetApp has now moved into second place in the tracker, as compared to its fourth place position in 4Q15.

Meanwhile, EMC (EMC) has continued to dominate the all-flash market, with revenues of $245.6 million and a market share of 30.9%. By comparison, NetApp’s all-flash array segment’s revenue was $181.1 million, with a share of 22.8% in 1Q16. Other major players in this segment include technology (QQQ) giants Hewlett Packard Enterprise (HPE) and IBM (IBM), which have shares of 12.4% and 8.5%, respectively.


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