NetApp, (NASDAQ:NTAP) which reported its Q3 earnings on February 13, also announced that it has acquired ionGrid, a developer of mobile virtualization software. This acquisition will enable it to enter the bring-your-own-device (BYOD) market as well as add mobile virtualization capabilities to its existing storage software. NetApp designs solutions for storing, managing and protecting business data through enterprise storage and data management software, and it also provides hardware products and services. NetApp also estimates Q4 revenues to be in the range of $1.7-$1.8 billion and EPS is expected to be $0.65 to $0.70 a share. 
- NetApp Posts Top Line Growth From Strategic Product Line, Robust Outlook For Coming Quarter
- NetApp Earnings Preview: Low Product Sales, Falling Prices To Continue To Impact Top-Line Growth
- NetApp’s 2016 In Review
- Where Does NetApp Stand In A Slowing Storage Systems Market?
- How Has NetApp Managed Operational Efficiency With Significant Revenue Declines?
- NetApp Beats Estimates On Revenues, Profits; Long-Term Cost Cutting Measures Implemented
We explain some key business developments below.
BYOD is a growing market in virtualization with NetApp competitor EMC having a majority market share through VMware. Considering the fact that mobile and tablet markets are fast growing and potentially much larger markets, we expect mobile virtualization to become a key driver for NetApp. This acquisition opens up the BYOD business for NetApp, which mainly involves management and monitoring of critical data through mobile devices. ionGrid develops only for iOS, and its Stratos platform, provide cloud-like features to mobile phones even though the app isn’t cloud-based. During the launch of the app, it was priced at $15 per user per month. 
Flash Storage – A Key Growth Driver May Benefit From Virtualization
NetApp has a strong flash portfolio, and as of Q3 2013, it has shipped over 36 petabytes of flash deployed over 20,000 systems worldwide. Flash provides high speed data performance and the company has introduced a portfolio of hybrid and SSD-based solutions, which has seen strong traction in the market. In Q3, bookings for systems with Flash pools, a hybrid disk and SSD solution, grew 67% sequentially despite the costs associated with it as companies are willing to pay for the enhanced performance. We can see the hybrid solutions becoming a major driver in 2013.
We currently have a $37.50 Trefis price estimate for NetApp, which is slightly higher than its market price.Notes: