How The Slowdown In Storage Hardware Will Impact NetApp This Year
Storage systems vendor #NetApp has had a tough couple of years, with revenue declines in both 2014 and 2015. This was largely due to tepid demand for storage products – a trend consistent across most large storage vendors including #EMC, #IBM and #HPE. In previous years, @NetApp made up for low product revenues by growth in hardware maintenance contracts and post-sale services. However, in recent quarters, this revenue stream has also suffered. In the most recent quarter, the only revenue channel that showed positive growth was software maintenance, with a modest 3% annual growth in revenues. With a slowdown in IT spending by customers across the globe, it could be difficult for NetApp to drive top line growth through 2016. We forecast NetApp’s net revenues for the full year to decline by about 6% to under $5.4 billion.