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NetApp (NTAP) Crafts New Cloud-Based Storage Solution on HCI

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NetApp (NTAP - Free Report) recently launched new cloud-based services in order to provide a hybrid storage architecture which eliminates the rigidity of choosing either on-premise or cloud infrastructure.

The new suite of NetApp’s multicloud Services makes NetApp Cloud Data Services accessible on NetApp HCI. The latest NetApp solutions enable customers to bring storage software directly to cloud platforms.

NetApp new storage solution provides flexibility to the enterprises in running complex business application workloads, file systems and virtual machines, among others. The customers can leverage the solution to seamlessly manage both block and file data, and consolidate workloads to accelerate business processes. With the latest offering, NetApp aims to assist companies in managing their business in an organized manner across hybrid multiple cloud platforms.

In this regard, NetApp's data fabric offerings connect to the prominent public clouds and provide backup services, which help companies in conducting business efficiently and easily.

According to Deepak Mohan, research director, Infrastructure Systems, Platforms and Technologies, IDC, "NetApp's data fabric offerings enable enterprises to seamlessly manage data across a multitude of IT infrastructures, covering on premises and multiple public cloud service platforms."

Cloud Storage Capabilities: A Key Catalyst

The company’s transition to data fabric strategy (a software-defined approach to data management) is expanding business opportunities. Further, increased momentum of the company’s HCI and expanded new cloud partnerships favor growth prospects.

The new NetApp Kubernetes service designed for multi-cloud deployments supports cloud-based stack for leading cloud platforms, comprising Amazon’s AMZN Amazon Web Services, Microsoft’s (MSFT - Free Report) Azure, Google Cloud, and NetApp HCI.

We believe the robust features will favor adoption rate, in turn bolstering NetApp’s financial performance in the days ahead. The company’s expertise in the flash array market is aiding its popularity in storage area network (SAN) and converged infrastructure markets.

The new cloud-based services are expected to aid the company in expanding presence in storage market significantly against all-flash players including Pure Storage (PSTG - Free Report) .

In fact, per IDC data on first quarter of 2019, NetApp was the third leading company in the enterprise storage systems market with 6.7% share which improved 0.5% year over year, trailing only Dell and HPE. Meanwhile, Pure Storage came in sixth position with market share of 2.2%.

Per ResearchAndMarkets data, the global data center storage market is envisioned to increase at a CAGR of 11.8% from 2018 through 2022. Further, per MarketsandMarkets, the hybrid cloud market is projected to reach $97.64 billion by 2023 from $32.87 billion valued in 2017at a CAGR of 17% from 2018 to 2023.

Notably, per MarketsandMarkets data, all-flash array market is projected to hit $17.8 billion by 2023 from $5.9 billion in 2018, at a CAGR of 24.53%. Consequently, this favors the prospects of NetApp’s latest solutions in the longer haul.

Zacks Rank & Stocks to Consider

Currently, NetApp carries a Zacks Rank #4 (Sell).

A better-ranked stock in the broader technology sector is Match Group, Inc. (MTCH - Free Report) , flaunting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Match Group has a long-term earnings growth rate of 15.2%.

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