NetApp’s cloud strategy
NetApp (NTAP) aims to provide industry-leading cloud data services that will enable its customers to deliver business outcomes for IT (information technology) workloads in cloud, multicloud, and hybrid cloud environments.
As we’ve learned, NetApp expects its Cloud Data Services revenue to rise at a CAGR (compound annual growth rate) of 46% from $400 million in fiscal 2017 to $2 billion in fiscal 2021.
NetApp will look to provide a continuous stream of cloud services to protect, secure, and monitor data through its Data Fabric software. NetApp will be selling these services through its direct sales team as well as in partnership with Microsoft (MSFT).
Like many hardware companies, including Cisco (CSCO) and Hewlett Packard Enterprise (HPE), NetApp is also looking at building a subscription-based model to ensure a recurring stream of revenue. As part of its Cloud Data Services vertical, NetApp is providing data monitoring and optimization, data management (security, backup, protection), and data storage solutions.
NetApp claims that these services have been well received by customers and hyperscalers. NetApp supports cloud, multicloud, and hybrid cloud computing for on-premises enterprises through its NetApp Data Fabric.
The company’s Cloud Data Services vertical has over 1,800 customers and has managed over 11 exabytes of storage to date. NetApp’s client base includes six out of the top ten retailers, six out of the top ten healthcare companies, eight out of the top ten banks, five out of the top ten industrial companies, and eight out of the top ten tech providers.
By fiscal 2021, NetApp expects this vertical to generate recurring revenue of between $400 million and $600 million.