Sign in Subscribe
Software

NetApp and Microsoft Strengthen Strategic Alliance

Strategic Insights

— 1 min read

NetApp Inc. (Nasdaq: NTAP) has significantly enhanced its strategic alliance with Microsoft Corp. (Nasdaq: MSFT) in an effort to offer customers and service providers improved infrastructure and operational efficiency. The strengthened partnership increases technological collaboration between the two companies, resulting in cost reduction and enhanced management capabilities. This collaboration is expected to improve customer satisfaction and attract new customers by providing efficient internal and external networks through Microsoft's management tools and NetApp's storage solutions.

Key Takeaways:

  • NetApp has strengthened its strategic alliance with Microsoft, aiming to enhance customer and service provider infrastructure and operational efficiency.
  • The partnership is expected to result in cost reduction and improvement in management capabilities, leading to increased customer satisfaction and new business opportunities.
  • NetApp has reported a 35.5% revenue growth in the third quarter, reaching $1.01 billion, exceeding the Zacks Consensus Estimate of 38 cents per share.
  • The data storage segment is expected to witness a pickup in demand, driven by the improvement in IT spending and adoption of object-based storage.
  • NetApp faces stiff competition from tech giants IBM, EMC, HPQ, and Hitachi Data Systems in the data storage and management software space.
  • The strengthened partnership is expected to help NetApp progress towards the leadership position in the storage segment.
  • Zacks Equity Research provides continuous coverage for 1,150 publicly traded stocks, offering quantitative and qualitative analysis for investors.
  • The Zacks Rank, a proprietary stock picking system, has outperformed the market by nearly a 3 to 1 margin.

Statistics:

  • NetApp's third-quarter revenue growth: 35.5%
  • NetApp's third-quarter EPS: 40 cents, exceeding the Zacks Consensus Estimate of 38 cents per share
  • Number of publicly traded stocks covered by Zacks Equity Research: 1,150
  • Number of years since Zacks was formed: 47

Sources:

  • Zacks.com Analyst Blog
  • Zacks Equity Research
  • Zacks Investment Research, Inc.
  • "Profit from the Pros" e-mail newsletter

Read more