With every passing year, NetApp is reaching new heights in sustainability, simplicity, and savings. 2023 has remained a marvelous year for NetApp, with many new innovations and upgrades.
The company is pushing the limits of performance, cyber resilience, and cost efficiency while simplifying data infrastructure management. Therefore, let's dive deep into the NetApp insights for 2024 and conduct a detailed analysis of customer demographics, current market trends, and future market outlook.
Who is Currently Buying NetApp Products?
NetApp is the leading provider of cloud data services and data management solutions. Therefore, it has a massive customer demographic, expanding to many industries and countries.
NetApp's main customers are located in the United States, especially in the Information Technology (IT) and services industry. According to the analysis by Enlyft, 54% of NetApp Storage Systems customers are in the U.S., followed by 7% in the United Kingdom. From the industry's perspective, the top industries using NetApp Storage Systems include Information Technology and services, computer software, financial services, hospital and healthcare, telecommunication, and so on.
Among the big names, the main NetApp customers include Adobe, Cisco, NASA, Fujitsu, eBay, and many more. Besides that, NetApp has partnerships with Google, Microsoft, AWS, etc.
Overall, NetApp has many big names in its customers/partners portfolio that are actively buying and investing with NetApp every year. Besides that, NetApp products are actively being deployed by new SMEs who want to make their data infrastructure more dynamic, seamless, and high performing.
Current Market Trends in NetApp Purchases
Looking at the results of NetApp's second quarter of fiscal year 2024, the company achieved a net revenue of $1.56 billion. Within this total, the hybrid cloud segment revenue was $1.41 billion, and the public cloud segment revenue was $154 million. The massive revenue in the hybrid cloud segment is a reflection of the widespread adoption of hybrid cloud solutions.
To better understand current market trends in NetApp purchases, let's closely look at what innovations and upgrades NetApp brought in 2023.
NetApp INSIGHT 2023 was a partner and customer conference held by NetApp in Las Vegas in October 2023, where the company talked about many groundbreaking innovations. Some of the main ones worth mentioning are as follows:
1. Unified Data Storage with New Block Storage Offerings
NetApp has further extended the definition of "unified data storage". It is now an entire ecosystem that enables file, object, and block workloads in a common OS. Furthermore, the OS spans dozens of on-premises storage offerings and all major public clouds, unified by a common control plane and API set.
NetApp has introduced ASA systems, all-flash SAN arrays, in order to offer a simplified block-optimized option while still operating through the same NetApp ONTAP. This way, you can get excellent block storage but without bespoke silos.
Moreover, the company has unveiled the ASA C-Series, which offers exceptional sustainability and savings for block workloads.
2. Enhancements in Google Cloud NetApp Volumes
There are some enhancements made in Google Cloud NetApp Volumes with which you can now easily deploy, migrate, and manage data/applications in Google Cloud without redesigning processes or refactoring code. In fact, you can now increase integration into the entire Google Cloud ecosystem via a fully managed cloud storage service, which optimizes capacity and automates operations.
Besides that, NetApp has also introduced the Standard service level along with previous Extreme and Premium service levels. The Standard service level is meant to provide smaller entry configuration capabilities for cheaper starting points.
3. Industry-Leading Ransomware Defense
NetApp is now delivering industry-leading ransomware defense due to the increasing concerns about ransomware attacks. The ONTAP amalgams built-in security and ransomware protection features. It helps prevent rogue admins and malicious users and also blocks malicious file types. Moreover, its Autonomous Ransomware Protection feature is capable of detecting attacks, creating more Snapshot copies, and recovering from the attacks quickly.
In addition, NetApp is now offering a more affordable Ransomware Recovery Assurance service to facilitate enhanced recovery after a ransomware attack. Besides that, the company has also increased its Ransomware Recovery Guarantee.
4. Other Innovations and Upgrades at NetApp in 2023
The other developments reported at NetApp in 2023 are as follows:
- NetApp BlueXP disaster recovery service is now open for public preview. It is designed to offer low-cost and easy disaster protection for VMware workloads.
- NetApp Keystone storage as a service now provides new Performance and Availability Guarantees to keep storage operations running efficiently.
- NetApp announced the availability of Spot Connect, which automates workflows to revolutionize cloud operations.
- NetApp introduced unified file and object access through the ONTAP S3 API on Amazon FSx for NetApp ONTAP.
Looking at all the above developments at NetApp, it is clearly evident that market trends are leaning towards a more comprehensive hybrid cloud segment with more emphasis on security, simplicity, and cost-friendliness.
Future Market Outlook for NetApp
NetApp forecasts the net revenue for the third quarter of fiscal year 2024 to be around $1.51-$1.67 billion. This means that the hybrid cloud segment will keep dominating the NetApp sales for months to come.
Talking about emerging trends and growth areas, NetApp looks committed to expanding its market presence and relevance. We are likely going to witness enhancements in existing offerings of NetApp with an emphasis on simplifying operations, increasing efficiency, integrating AI, and offering cost-friendly solutions where possible.
In addition, NetApp is likely to keep its focus on improving the cybersecurity posture of its services, considering the emerging cyber threats. Besides that, we can expect some more upgrades of services/products by NetApp in collaboration with its partners, just like we saw an extended partnership between Google Cloud and NetApp with the launch of Google Cloud NetApp Volumes.
Refurbished and Reseller Market for NetApp Products
The refurbished and reseller market casts a positive influence on NetApp products. Over the past years, the refurbished network equipment market has grown significantly. Many businesses are preferring to use refurbished or resold equipment to upgrade their infrastructure. This approach helps them find cost-effective equipment and improve their performance without exceeding their budget.
Today, many refurbished and used NetApp products, like FAS9000 Storage, E5760 Storage System, and similar others, are sold online to startups, small businesses, etc. This is casting a positive impact on NetApp, as its products are accessible to a wider customer base.
Moreover, the refurbished NetApp market is also helping increase its product lifespan. This contributes to less electronic waste and more sustainability. On top of that, the refurbished and reseller market complements the new product market, as it increases the product reach and serves as a cost-friendly entry point for businesses to experience NetApp products.
ReluTech retains a large inventory of certified-refurbished NetApp products. Customer can expect up to 60% off NetApp products when you purchase from ReluTech instead of the OEM. Request a quote now to see how much you can save on your next NetApp purchase.
Conclusion
NetApp is a leader in the data storage solutions industry, and it continues to dominate the market with its innovations, upgrades, and future-oriented approaches. That's the reason that the company continues to touch the quarterly $1 billion net revenue mark. Therefore, 2024 is going to be another exciting year to see what new innovations NetApp brings for us.
