Storage giant @NetApp is one of the largest players in the storage industry, with an estimated 13% share in the global external storage systems market. It competes with large IT hardware vendors @Dell EMC, @IBM, @HPE and @Hitachi on one end of the spectrum and newer flash-storage startups on the other end. It has been a difficult few years for many large players as they battle through price declines and a low demand environment. Meanwhile, low-cost original design manufacturers (ODMs) and flash-storage startups have further impacted established players by catering to the addressable market with white label storage boxes, which has led customers to transition away from leading IT hardware vendors. This has resulted in a loss of share for large players in the storage market, as evidenced by IDC reported data. Strategic Products Driving Growth To counter this trend, NetApp’s management has focused on what it calls its Strategic Products, which primarily include Clustered ONTAP, E-Series storage products and SolidFire all-flash storage arrays. Comparatively, the company’s Mature product line largely refers to its older 7-Mode ONTAP storage arrays. The customer response to the company’s strategic products has been impressive through the last year, with NetApp reporting more than 20% revenue growth in strategic product sales through the first three quarters of 2017. As a result, NetApp’s market share in the storage systems market was up by almost 3 percentage points through 2017, per Trefis estimates.
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