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NetApp, Inc.
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About NetApp, Inc.

NetApp makes hardware and software for storing, managing, accessing, and analyzing data. Its products extend customers' IT infrastructure to the cloud environments of Amazon Web Services, Google and Microsoft. NetApp's Data Fabric platform is designed to simplify and automate data for companies working in multiple cloud environments. The company's products are gathered under its cloud data services, cloud infrastructure, and storage systems and software businesses. NetApp's customers are in the energy, financial services, government, health care, life sciences, manufacturing, IT, and other sectors. US customers generates more than 45% of company's total sales.

Operations

NetApp gets revenue from the sale of products and providing software maintenance and hardware maintenance. Products provide more than 50% of revenue while hardware maintenance accounts for over 25% and software maintenance, nearly 20%.

The company sells configured systems, which are bundled hardware and software products, as well as add-on flash, disk and hybrid storage and related operating systems, NetApp HCI, StorageGrid, OEM products and add-on optional software.

The company's products include flash storage systems and the software for running those systems. Hardware and software fall under the company's Data Fabric platform designed to help customers store, manage, and access data. Hardware products include all-flash and hybrid flash arrays. Software systems include NetApp Cloud Sync, the NetApp Software Portfolio, and the ONTAP Storage Operating System.

NetApp also provides hardware maintenance and other services. The company outsources the production of its hardware to third parties operating in the US, Mexico, Europe, and Asia.

Geographic Reach

NetApp has customers in some 140 countries. Its biggest market is the US, which generates more than 45% of sales. The Europe, the Middle East, and Africa region accounts for more than 30% of revenue, while the Asia/Pacific region generates the rest.

The company is headquartered in Sunnyvale, California, and has operations in North Carolina, Kansas, and India.

Sales and Marketing

NetApp's marketing efforts consist of product, field, channel, solutions, and digital marketing and public relations. NetApp has field sales offices in about 45 countries. It employs a multichannel distribution strategy, selling products and services to end users and service providers through a direct sales force and channel partners, including value-added resellers, system integrators, OEMs, and distributors.. NetApp relies on distributors Arrow Electronics Inc. and Tech Data Corporation for about 45% of revenue.

Strategy

A large part of NetApp's strategy is to help its customers move their storage to cloud computing environments and manage data between different environments, such as between private and hybrid clouds. The company has concentrated on developing software that helps customers manage data over various systems as storage hardware has fallen of favor with companies. On this premise that Net App helps customers move from building data centers to building data fabrics. A data fabric simplifies the integration and orchestration of data services across clouds and on-premises to accelerate digital transformation.

The Company also outsource its manufacturing operations to third parties. NetApp strive to have multiple suppliers qualified to provide critical components where possible and have its products manufactured in a number of locations to mitigate its supply chain risk. This strategy minimizes capital investments and overhead expenditures while creating flexibility for rapid expansion.

NetApp's growth strategy also includes developing and maintaining strategic partnerships with major third-party software and hardware vendors to integrate company products into their products and also co-market its own products with them. A number of NetApp's strategic partners are industry leaders that offers expanded access to segments of the storage and data management markets. In particular, strategic partnerships with hyperscalers and cloud service vendors are critical to the success of the Company's cloud-based business.

Mergers and Acquisitions

In 2019, NetApp acquired Cognigo, a data security firm based in Israel, for $53 million. Cognigo's security offerings use artificial intelligence and natural language processing to categorize pieces of data according to regulations for specific types of data.

In 2020, NetApp acquired all the outstanding shares of privately-held Talon Storage Solutions, Inc., a provider of next generation software-defined storage solutions, for about $23 million. NetApp's acquisition of Talon enhances the company's cloud data services portfolio with a market-leading?solution that solves all the remote office and branch office challenges with file shares.

That same year, NetApp acquired all the outstanding shares of privately-held Cloud Jumper Corporation, a provider of virtual desktop infrastructure and remote desktop services solutions, for approximately $34 million in cash. As a result of the acquisition, the new NetApp Virtual Desktop Service (VDS) will solve the most challenging problems of virtual desktop services and application management, allowing customers to deploy, manage, monitor and optimize those environments as a total solution from a single company on the public cloud of their choice.

Company Background

David Hitz and James Lau along with Michael Malcolm founded Network Appliance in 1992. The trio saw a market for file servers, hardware that takes the storage duties out of high-performance UNIX-based computers and speeds data flow.

Donald Valentine of Sequoia Capital invested in Network Appliance in 1994, and was named chairman. He promptly brought on board as CEO Daniel Warmenhoven, the top executive of telecommunications company Network Equipment Technologies. (It was the return of a favor -- Warmenhoven had given Valentine a tip on investing in a late-1980s fledgling named Cisco Systems.) Warmenhoven ditched the company's network of resellers and built an in-house sales and marketing unit. Network Appliance went public in 1995.

NetApp, Inc.

1395 Crossman Ave
Sunnyvale, CA 94089-1114
Phone: 1 (408) 822-6000

Firm Stats

Employer Type: Publicly Owned
Stock Symbol: NTAP
Stock Exchange: , NASDAQ
President and CEO: George Kurian
Vice Chairman: Tom Mendoza
Chairman: T. Michael Nevens
Employees (This Location): 1,600
Employees (All Locations): 10,800

Major Office Locations

Sunnyvale, CA

Other Locations

Scottsdale, AZ
Irvine, CA
Sunnyvale, CA
Thornton, CO
Indianapolis, IN
Overland Park, KS
Wichita, KS
Tewksbury, MA
Waltham, MA
Minneapolis, MN
Durham, NC
Independence, OH
Cranberry Township, PA
Austin, TX
Dallas, TX
Ogden, UT
Vienna, VA
Shanghai, China
Fukuoka, Japan
Nagoya, Japan
Osaka, Japan
Calgary, Canada
Vancouver, Canada
Lyon, France
Toulouse, France