All-flash business revenues rose 95% YoY
As seen in the chart below, NetApp’s (NTAP) All-Flash Array business rose 95% YoY (year-over-year) to an annualized run rate of $1.5 billion. This segment includes all-flash FAS (fabric-attached storage), EF-series, and SolidFire products. NetApp’s strength in flash is also driving demand in the SAN (storage area network) and converged infrastructure markets.
The company’s all-flash FlexPod helped NetApp to retain the number two position in the converged infrastructure space. According to market research firm IDC, FlexPod revenues rose 26% YoY in 1Q17. NetApp believes that enterprises are moving from disk-based storage to flash.
During the company’s fiscal 1Q18 earnings call, NetApp’s CEO, George Kurian, stated, “We have a significant growth opportunity ahead as we penetrate our installed base and displace competitors’ installations with our cloud integrated all-flash solutions.”
NetApp one of the major all-flash array players
NetApp stated that it is quickly gaining traction in the flash storage sector by providing enterprises with solutions that deliver speed, scale, and data services. NetApp was recognized as one of the leaders in Gartner’s Magic Quadrant among the solid-state array players.
The AFA (all-flash array) market is expected to rise at a CAGR[1. compound annual growth rate] of 27.9% between 2017 and 2024. At the end of 1Q17, NetApp commanded a 21% share in the AFA market, according to research firm Dell’Oro Group. In 1Q17, worldwide AFA sales rose 48% YoY to $1.3 billion, and it is the only vertical in the external storage market that is currently growing.