Feeds

Falling share price exposes NetApp

Looks vulnerable

Internet Security Threat Report 2014

NetApp's market worth has dropped 51 per cent in 16 months, making it vulnerable to a takeover.

In February 2011 NetApp shares cost $60.60 and its market capitalisation was $21.9 billion. Now it's worth just $10.9 billion with shares trading at $30.02. Why?

Investors think it has gained storage market share relative to Dell, HP and IBM and other companies except EMC - which is growing much, much more quickly.

They think it's vulnerable to hybrid flash/disk array startups like Nimble, Tegile, Tintri and others, all-flash array startups like GreenBytes, Nimbus, Pure Storage, SolidFire, Violin Memory, WhipTail and others. It has no auto-data placement strategy for tiers of SSD and disk storage, relying on caching instead.

Investors could think it is not capitalising enough on its Engenio acquisition and its object storage strategy is stalling.

Yet it has recorded consistently growing results due to shrewd executive management and great operational management. The investor doubters could be totally wrong. Yet the shares are tanking and the company is now affordable to the likes of Cisco, IBM and Oracle.

Will they jump on NetApp and give themselves much stronger clout to compete with EMC? You can see the basic logic easily enough. IBM resells NetApp filers. Cisco needs its own storage capability to be sure of prospering in a world of converged systems. Oracle's storage efforts outside its own Exa-type systems are going nowhere. If one of them pounces that would be a massive move. ®

Internet Security Threat Report 2014

More from The Register

next story
Docker's app containers are coming to Windows Server, says Microsoft
MS chases app deployment speeds already enjoyed by Linux devs
IBM storage revenues sink: 'We are disappointed,' says CEO
Time to put the storage biz up for sale?
'Hmm, why CAN'T I run a water pipe through that rack of media servers?'
Leaving Las Vegas for Armenia kludging and Dubai dune bashing
'Urika': Cray unveils new 1,500-core big data crunching monster
6TB of DRAM, 38TB of SSD flash and 120TB of disk storage
Facebook slurps 'paste sites' for STOLEN passwords, sprinkles on hash and salt
Zuck's ad empire DOESN'T see details in plain text. Phew!
SDI wars: WTF is software defined infrastructure?
This time we play for ALL the marbles
Windows 10: Forget Cloudobile, put Security and Privacy First
But - dammit - It would be insane to say 'don't collect, because NSA'
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
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.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.