NetApp NTAP announced the extension of its existing collaboration with VMware VMW to address complex challenges faced by customers to modernize enterprise-class workloads in multi-cloud environments while containing costs simultaneously.
NetApp and VMware have been collaborating for the past 20 years and have served more than 20,000 mutual customers, per the company.
The current collaboration is aimed at tapping the robust demand for public cloud. Amid rapidly changing operational dynamics, organizations require more flexibility to build, deploy and manage enterprise workload and data management infrastructure.
NetApp, Inc. Price and Consensus
NetApp, Inc. price-consensus-chart | NetApp, Inc. Quote
Per research from Markets and Markets, the global cloud computing market size is expected to grow from $445.3 billion in 2021 to $947.3 billion by 2026, registering CAGR of 16.3%.
The latest collaboration will aid customers in properly structuring their cloud computing and storage architectures to cut down on the expenses of running data-intensive workloads in the cloud and avoid the costs of migrating applications from on-premises to the cloud.
NetApp and VMware are combining their expertise and innovating across leading public cloud providers to certify and support VMware Cloud and NetApp Cloud Services so that users can efficiently migrate workloads and files to the cloud with minimal cost and risk, added NetApp.
Also, NetApp’s ONTAP-based storage arrays now support VMware Tanzu and VMware Cloud Foundation. Customers can leverage these features to simplify and accelerate the development of modern containerized applications and traditional virtual machines.
NetApp has recently collaborated with Kyndryl, NVIDIA and Alluxio to bolster the adoption of its Cloud Data Services and expand its customer base.
In May, NetApp partnered with Kyndryl to help companies better organize, manage and gather insights via enhanced data management across on-premises, cloud and edge-computing environments. The new solutions will aid enterprises in accessing, analyzing and drawing insights from data stored on multiple platforms and cloud while enabling a speedier transition of critical applications to the cloud.
Prior to that, it partnered with NVIDIA to boost artificial intelligence and high-performance computing.
The company recently reported first-quarter fiscal 2023 non-GAAP earnings of $1.20 per share, which surpassed the Zacks Consensus Estimate by 9.1% and increased 4.3% year over year.
Revenues of $1.59 billion increased 9.2% year over year, beating the Zacks Consensus Estimate by 2.64%. The upside can be attributed to the strong revenue growth for the Hybrid and Public Cloud business segments.
Public Cloud Services recorded annualized recurring revenues of $584 million, up 73% year over year. The performance was driven by continued momentum in cloud storage, especially by Azure NetApp Files, AWS FSx for ONTAP and Google CVS.
NetApp currently carries a Zacks Rank #3 (Hold). In the past year, shares of the company have lost 17.5% compared with the industry’s decline of 20.3%.
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Stocks to Consider
Some better-ranked stocks from the broader technology space are Cadence Design Systems CDNS and Arista Networks ANET. Cadence Design Systems and Arista Networks each sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CDNS 2022 earnings is pegged at $4.11 per share, rising 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.
Cadence’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have jumped 6.7% in the past year.
The Zacks Consensus Estimate for Arista Network’s 2022 earnings is pegged at $4.04 per share, increasing 9.8% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.6%.
Arista Network’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 10.1%. Shares of ANET have increased 30.7% in the past year.
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