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Long-Term Growth Drivers for NetApp

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Partnership with Microsoft

In the previous part of this series, we saw that NetApp’s (NTAP) revenue in fiscal 2Q18 rose YoY (year-over-year), driven by a robust product portfolio and strong demand for storage solutions. In NetApp’s 2Q18 earnings call, CEO George Kurian stated, “I am proud of our continued progress in transforming NetApp to deliver sustained profitable growth. Our strong performance reflects our customers’ commitment to NetApp and their clear and growing preference for the value of our Data Fabric strategy.”

Earlier this year, NetApp announced that it has a data fabric solution to simplify and integrate data management in the cloud and on-premise environment.

NetApp launched new products in 2Q18, which helped the company target new growth areas. NetApp also expanded its partnership with Microsoft Azure (MSFT) and enabled the industry’s first Azure enterprise NFS (network file system) service.

Digital transformation

Similar to traditional IT (information technology) companies Accenture (ACN) and Cognizant (CTSH), storage tech firms including NetApp are banking on digital transformation to drive revenue growth.

NetApp aims to help customers manage their respective exponential data growth in the digital era as well as manage complex hybrid environments for enterprises. NetApp is a market leader in the storage space and provides sophisticated data management solutions to companies.

The exponential growth in the IoT (internet of things) space is likely to drive demand for storage solutions and NetApp is looking to gain traction in this market by harnessing the power of data.

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