George Kurian, NetApp’s CEO, expressed optimism regarding the potentials of all-flash arrays and hybrid cloud options in the future, reported CRN. The second fiscal quarter 2021 results are showing prospects in the use of the techs in the years to come.
During NetApp’s quarterly fiscal conference call, Kurian said that he was positive about the company’s development even in light of the uncertainty in terms of the market environment.
The firm was able to make progress with the help of the improvements it implemented in its sales coverage. It has also paid more attention to execution, which made its progress more impactful.
He remarked, “We saw strength in all geographies, with larger customers accelerating their digital transformations with NetApp.”
He added, “We will continue to exploit competitive transitions, the growth of the all-flash market, and the accelerating shift to cloud toe expand our leadership position.”
In line with this, Kurian announced its plan to a brand-new NetApp that offers a more cloud-like service, with a data-centric approach. This new version of the company is expected to grow its cloud-focused business while tapping into the storage market.
Kurian expects these developments to facilitate growth in its services including its high-margin software, cloud services, and recurring maintenance, which all serve as revenue streams for the company.
He said, “This, coupled with our disciplined Opex management, balanced approach to investing for growth, and sustained capital returns, will create significant long-term shareholder value.”
Kurian also emphasized that this focus has given the company an annualized revenue run rate of $216 million, which is a triple increase from last year. Its all-flash array’s annualized run rate has $2.5 billion which is a 15% increase compared to 2019 figures.
However, NetApp only uses all-flash systems in 26% of its installed systems. Regarding this, Kurian said, “[This is] giving us opportunities for continued growth by converting our installed base in addition to winning new customers with our industry-leading all-flash solutions.”
Moreover, both types of services drove in more than 10% revenue each, compared to last year, showing how focusing on the two will help increase revenues.
NetApp is known to cater to organizations that seek to move toward a hybrid cloud and this development will help it provide address such needs. In fact, this setup has become the default infrastructure of enterprises that have embraced the digital world.
Kurian is also optimistic that its services can help organizations adjust to the new normal brought forth by the pandemic.
