Thread regarding NetApp layoffs

Cloud Software Driving Growth And Multiple Expansion

The Street continues to underappreciate NetApp's software business and ascribe more importance to the hardware business despite accounting for 25% of revenue.

Newer software offerings such as Astra (Kubernetes and container storage), SPOT compute optimization software, and cloud data services to drive growth.

We view the new NetApp as a software company more than a hardware company, given software and services revenue drives growth and profits.

NetApp continues to gain share in the All-Flash-Array market, and as businesses head back to offices, we expect on-prem storage sales to accelerate.

Estimates are conservative; compelling valuation, solid cash flow, a decent dividend payout, and an impending multiple expansion make NetApp a buy.

Eat it trolls

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| 2931 views | | 7 replies (last April 23, 2021) | Reply
Post ID: @OP+1ajzVpGV

7 replies (most recent on top)

Except for security with the cloud has gotten to where it's the same as on–prem. The only reason to have on–prem is if you have users that cannot tolerate latency. For instance, a hospital does not want a radiologist sitting there waiting for a 2GB PACS files to download from the cloud so they store it within the enterprise...

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Post ID: @cymq+1ajzVpGV

The trend is moving towards cloud. Yes there are firms that have security requirements to do on-prem or hybrid, which all fall in category of OnTap customers. NetAPP will d.e slowly since it falls behind significantly and won't be able to catch up because of the 5-10x overhead and old school style, which just won't work in today's tech world.

It's ok, even mighty IBM is dying.

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Post ID: @7lip+1ajzVpGV

Look at it this way, who else is doing hybrid and data cloud services? Everyone else is mostly selling hardware. Yes hardware is still netapps main revenue, but the cloud stuff is growing fast.

Stock is undervalued because the hype isn’t overwhelming like tesla. Good thing because expectations/stock price is low. The dividend and potential is high longterm.

I will agree that the company is poorly managed and bloated. If it were to me, I’d cut the f▯t. Fix the processes instead of hire people to work in and around inefficiency. Eventually someone really needs to axe the old school leadership set in their ways and consistently not being held responsibility for poor performance...it’s this company’s cancer.

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Post ID: @7vkz+1ajzVpGV

Ontap is NetApp’s glass ceiling! That’s it! Anything that NetApp is building is around ontap, unfortunately!

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Post ID: @3vpv+1ajzVpGV

It cracks me up when cheerleaders come to a site about layoff rumors to complain about trolls. The "new" NetApp as a software spiel has been being said since Georgens was in charge. NetApp is a commodity storage company. That is it. Yes it has cloud offerings but they only appeal to customers who don't want to let go of NetApp. That means new acquisitions and growth are challenging. As the NetApp champions move on from the companies that are using NetApp and the realities of a multi vendor solution continue to drive high costs, those companies will eventually move on from NetApp as well. NetApp should have pushed HARD to be acquired like 10 years ago. Now it is too late.

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Post ID: @3ogb+1ajzVpGV

The astra project, sass and enterprise together, could easily be developed by a startup with < 30 people in a year! How many are working on it at NetApp? Too much overhead, most don’t do s–tPO, PM, architects, TD, mangers, directors, tech leads, gees, what the hack!

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Post ID: @zog+1ajzVpGV

Let’s give it time, don’t speak too early! Astra? For a team that has never be able to deliver anything successfully? Lol!

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Post ID: @kra+1ajzVpGV

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