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

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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.

Share_NTAP1Subsequently, 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.

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Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for NetApp
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Notes:
  1. Worldwide Quarterly Disk Storage Systems Tracker Q1 2015, IDC Press Release, June 2015 []