What Is NetApp’s Presence In The Storage Systems Market?

NetApp has been a major player in the storage systems market over the years. NetApp’s hardware-independent single operating system for storage products (Data ONTAP), ease of deployment and an active sales channel helped it gain share in the market. As a result, NetApp’s market share in the external storage systems market rose from 11.1% in 2010 to about 12.8% in 2014. Correspondingly, the revenue generated by sales of storage systems grew at a CAGR of over 7% in the same period to $3.1 billion in 2014.

Subsequently, a slowdown in global expenditures on IT hardware through 2014 and 2015 led NetApp’s storage product revenues to fall. Moreover, the presence of small vendors – such as flash storage startups – disrupted the industry by introducing cheaper white-box storage products. Over the last two years, customer preference has shifted to low-cost original design manufacturer (ODM) storage boxes, which has cut into the addressable market for large vendors. ^[1] As a result, most large vendors lost share in the storage systems market through 2014 and 2015. This trend is likely to continue over the next couple of years.

Have more questions about NetApp (NASDAQ:NTAP)? See the links below:

• What’s NetApp’s Fundamental Value Based On Expected 2016 Results?
• What’s NetApp’s Revenue and EBITDA Breakdown?
• ODM Storage Vendors Gain Share From Giants: EMC, HP, IBM, NetApp Lose Market Presence

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1. Worldwide Quarterly Disk Storage Systems Tracker Q1 2015, IDC Press Release, June 2015 [↩]