NetApp Inc. (NASDAQ:NTAP) boasts of a solid record in beating earnings estimates. The same is not expected to change as the company reports earnings for its most recent quarter. The data storage company has benefited a great deal on the transition to the cloud heating up, in the aftermath of the pandemic. Demand for cloud services has continued to edge higher all but strengthening the company’s core business prospects.
Strategic Partnerships
The cloud-centric company continues to attract subscribers as well as deals as it plays host to one of the best data management software. It accrues its edge on the fact that it is trusted by all the three major cloud providers led by Google Amazon and Microsoft.
Instead of competing with the major cloud vendors, NetApp has carved a niche for itself in helping the vendors get more businesses from enterprises. Most enterprises deploy the company’s products in public clouds. Likewise, Microsoft and Google sales force sell the company’s offerings on their respective platforms.
That said the cloud-for-data centric software company is well-positioned to profit as more workloads move to the cloud. NetApp competitive edge in the cloud offering business stems from its array of products that overcome limitations of public cloud providers.
For instance, the company boasts of ONTAP Cloud that allows enterprises leverage in disaster recovery in the cloud and in moving existing applications to the cloud. On the other hand, NetApp Private Storage is best known for high-performance cloud-based workloads and cloud-based disaster recovery.
NetApp Outlook
While the stock is down for the year, it has started bottoming out as the upward momentum continues to gather pace. The stock is up by more than 20% from its March lows. The bounce-back has coincided with an uptick in trading volume.
Renewed investor interest can be attributed to the company’s robust cloud offerings point to a bright future. With the stock threatening to break out from the current lows, it’s becoming clear that the best is yet to come given that NetApp has the products and relationships with large cloud companies to be a force to reckon with in cloud computing.