uploads///

What Are the Key Industry Trends for NetApp?

By

May. 18 2018, Published 9:19 a.m. ET

Data-driven digital transformation

According to NetApp (NTAP), the data-driven digital transformation seen across industry verticals has accelerated business outcomes. This has resulted in an increase in profitability and contributed to top line revenue growth. 

Companies are now in a position to increase revenue due to new product innovations. Digital transformation has also significantly improved operational efficiency.

Article continues below advertisement

Constraints of traditional IT

According to market research company International Data Corporation, traditional IT (information technology) budgets are likely to remain constrained until 2020. Gartner has stated that this constrained pace of innovation has resulted in an increased demand for application development—one far exceeding supply.

NetApp aims to bridge this gap by delivering a data fabric built for a data-driven world. NetApp aims to accelerate digital transformation by simplifying and integrating data management.

In NetApp’s fiscal third quarter (which ended in January), it expanded its cloud infrastructure and cloud data service offerings and introduced NetApp Cloud Volumes for AWS (Amazon Web Services) (AMZN) and support for VMware (VMW) on AWS.

NetApp’s Data Fabric strategy and broad portfolio of storage solutions have created new business opportunities. Companies are now looking to leverage huge amounts of data via AI (artificial intelligence) and machine-learning tools, which provide an opportunity for storage companies such as NetApp and PureStorage (PSTG).

During the company’s fiscal third-quarter earnings call, CEO George Kurian stated, “NetApp is uniquely positioned as the leader in helping organizations liberate their data for maximum business impact. In the data-driven digital era, customers require solutions for a complex world, where data resides in the data center, in multiple clouds, at the enterprise Edge and in externally linked applications and platforms.”

Advertisement

More From Market Realist