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VARs to increase business with NetApp, report says

If a survey of 15 VARs is a good indication, Network Appliance products are not only selling above plan, the NetApp partners selling them are shifting more of their sales efforts toward the NetApp products.  

In a study published today, Robert W. Baird & Co. reports that all but one of 15 NetApp partners surveyed are either on or above their quarterly sales targets.  NetApp’s indirect channel represents more than 60% percent of the company’s revenues.   

Based on the interviews with NetApp partners — with a combined annual revenue of $1.8 billion –NetApp’s long-term competitive position remains solid.   

The report also predicts that EMC’s new product offerings – which are designed to compete directly with NetApp — are likely to put greater competitive pressure on NetApp, but won’t be enough to curb NetApp’s growth rates of between 20% and 25% per year. 

NetApp is growing roughly three times faster than the industry largely due to the company’s easy-to-use solutions and its commitment to a single operating system across product families which translate to the technology managing more storage with less people, the Baird report said. 

NetApp stands to make further gains from its two-year-old OEM agreement with IBM.  Under the agreement several NetApp products are re-branded and distributed by IBM.  The agreement will further drive incremental growth and distribution of NetApp’s products through IBM’s global channels, the report said.  

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