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NetApp (NTAP) Ties Up With Porsche to Boost Team Performance

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NetApp (NTAP - Free Report) has announced a multi-year partnership with TAG Heuer Porsche Formula E Team to provide hybrid cloud solutions to help the team win races.

NetApp plans to tap the growing demand for its hybrid cloud and public cloud segments as organizations are shifting from traditional dedicated storage to shared storage in virtualized IT infrastructures.

In fiscal 2022, the company derived 94% of revenues from the hybrid Cloud segment and the remaining from the public cloud segment.

Data is extensively used to make critical decisions in various fields such as racing, business and engineering.

NetApp's hybrid cloud solutions enable TAG Heuer Porsche Formula E Team to collect and analyze data as cars dart along the track. This helps the team to make data-driven decisions in real time and enhance the overall performance of the car.

For instance, by analyzing data in real-time, Porsche can effectively calculate the timing to utilize the Formula E Attack Mode, which provides an additional 30 kilowatts of engine power for overtaking other cars and gaining track position. Attack Mode regulations are established by the Fédération Internationale de l'Automobile’s (FIA) just before each ePrix, therefore having a significant influence on the race strategy.

The hybrid cloud data solution combines global file cache and cloud network-attached (NAS) storage services to ensure that data can move swiftly and easily across several sites. Enterprises are shifting to NAS primarily due to its easy deployment capabilities and support for several networking environments.

A Formula E team such as Porsche needs to transfer the cloud data to their respective headquarters for further research. Additionally, after the race, data must be uploaded to the cloud to be used later for essential data services like backup and archiving.

NTAP also protects Porsche’s intellectual property, which includes Cloud Volumes ONTAP, Global File Cache, Cloud Manager and Cloud Backup.

NetApp provides enterprise storage, data management software and hardware products and services.

The company has partnered with Alphabet’s Google Cloud platform and Amazon Web Services to expand its cloud data services and customer base.

NetApp reported fourth-quarter fiscal 2022 non-GAAP earnings of $1.42 per share, which surpassed the Zacks Consensus Estimate by 11.8% and increased 21.4% year over year.

Revenues of $1.68 billion increased 8% year over year but missed the Zacks Consensus Estimate by 0.2%.

NTAP currently carries a Zacks Rank #3 (Hold). Shares of the company have lost 18.8% compared with the industry’s fall of 20.4% in the past year.

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Image Source: Zacks Investment Research

Stocks to Consider

Some better-ranked stocks from the broader technology space are Aspen Technology (AZPN - Free Report) , Synopsys (SNPS - Free Report) and Broadcom (AVGO - Free Report) , each sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aspen Technology’s 2022 earnings is pegged at $5.50 per share, increasing 1.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.4%.

Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.1%. Shares of AZPN have soared 24.8% in the past year.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.47 per share, rising 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have jumped 8.6% in the past year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 3.9% in the past 60 days. AVGO’s expected long-term earnings growth rate is 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 2.2%. Shares of AVGO have lost 0.1% in the past year.

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