Feeds

NetApp comes up trumps with fat annual profit

I'm too sixy

Remote control for virtualized desktops

NetApp vindicated its middle-of-the-road virtualisation and cloud service provider stance with a sixfold increase in annual profits.

The company is sticking to a core unified storage strategy, avoiding extensions of its product line into extreme scale-out NAS like Isilon, high-end enterprise storage like Symmetrix, or low-end products like those from Drobo or Iomega. It is also not present in the high growth deduplicating backup array market after failing to buy Data Domain, and it has eschewed adding flash solid state drives (SSDs) to its arrays, preferring flash caching in the array controllers - the products are just not glamorous.

Yet it has recorded revenues of $3.93bn for its fiscal 2010 year with a $400m net income, up from the $3.41bn revenue for 2009 and its $65m profit, a huge rise in profit. Fourth quarter revenue in fiscal 2010 was $1.17bn ($880m a year ago) with net income being $145m, comparing very well with the $68m reported a year ago.

CEO Tom Georgens said there had been a 50 per cent growth in product sales. In this mid-range sector of the market NetApp's single-minded unified product focus has enabled its growth to outstrip EMC, HP and Dell, and probably IBM too. That company, which resells NetApp products as its N-Series, contributed three per cent of NetApp's revenues.

NetApp now has over 5,000 V-Series predicts shipped, the ones that enable third-party arrays to be brought into the NetApp fold.

What lies ahead? There are persistent rumours of a high-end refresh for the FAS 6000 and surely SSD enclosures must be on the roadmap. Competitors like EMC are federating their arrays across data centres - the VPlex product - and 3PAR maybe doing something there too, so NetApp may have a federalisation element creeping into its plans.

It also has the object storage technology it has acquired with Bycast, although nothing public has been said about how it will integrate this with its existing technology.

Chairman Dan Warmenhoven must be looking on approvingly while his anointed successor as CEO, Tom Georgens, delivers the revenue and profit goods, and keeps the good ship NetApp on a steady course propelled by storage market trade winds, the strength and direction of which it appears to have read better than anybody else. ®

Intelligent flash storage arrays

More from The Register

next story
NSA SOURCE CODE LEAK: Information slurp tools to appear online
Now you can run your own intelligence agency
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
Stop the IoT revolution! We need to figure out packet sizes first
Researchers test 802.15.4 and find we know nuh-think! about large scale sensor network ops
Turnbull should spare us all airline-magazine-grade cloud hype
Box-hugger is not a dirty word, Minister. Box-huggers make the cloud WORK
SanDisk vows: We'll have a 16TB SSD WHOPPER by 2016
Flash WORM has a serious use for archived photos and videos
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
Microsoft adds video offering to Office 365. Oh NOES, you'll need Adobe Flash
Lovely presentations... but not on your Flash-hating mobe
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.