Business Analysis of NetApp

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of NetApp

Business Overview

NetApp, Inc. provides software, systems, and services to manage and store computer data worldwide. It offers flash; flash arrays that support data management; hybrid arrays to deploy the speed of flash storage; hybrid cloud; ONTAP cloud storage data management service; NetApp cloud sync hybrid data management Software as a Service; NetApp private storage for cloud; and AltaVault cloud-integrated solutions. The company also provides ONTAP storage operating system for data protection and security; SANtricity storage operating system, which provides performance, reliability, and data protection for application-driven workloads; SolidFire element operating system; NetApp StorageGRID Webscale software that allows customers to store and manage massive amounts of data on premises and in the cloud; NetApp integrated data protection solutions; OnCommand management software and management integration tools; and FlexArray storage virtualization software. Further, it provides software and hardware maintenance, professional, and customer education and training services, as well as support solutions. The company serves energy, financial services, government, high technology, Internet, life sciences, healthcare services, manufacturing, media, entertainment, animation, video postproduction, and telecommunications sectors through a direct sales force and channel partners. NetApp, Inc. was founded in 1992 and is headquartered in Sunnyvale, California.

NetApp

NetApp


R&P Rank: 473
Sector: Technology
Industry:Computers Systems and Peripherals
H.Q Location:California
Website: www.netapp.com
Company Address:
495 EAST JAVA DR, SUNNYVALE CA 94089
Ph:408-822-6000

Business Analysis of NetApp

The Technology Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how NetApp compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by NetApp to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of NetApp with an interactive chart.

  1. Revenue Growth: NetApp reported a revenue growth of -9.4% year-on-year during 2016. Computers Systems and Peripherals Industry grew at -7.5% in the same period
  2. COGS share of Revenues: As a percentage of revenue, NetApp spent 39.2% of its total revenues on COGS. Computers Systems and Peripherals industry average (COGS share of revenue) in the same period was 65.0%
  3. R&D share of Revenues: As a percentage of revenue, NetApp spent 15.5% of its total revenues on R&D. Computers Systems and Peripherals industry average R&D spending in the same period was 5.3%
  4. SG&A share of Revenues: As a percentage of revenue, NetApp spent 37.8% of its total revenues on Sales, Marketing, and General Administration (SG&A). Computers Systems and Peripherals industry average SG&A spending in the same period was 8.1%
  5. Inventory share of Revenues: As a percentage of revenue, NetApp spent 1.8% of its total revenues on Inventories. Computers Systems and Peripherals industry average Inventory spending in the same period was 3.9%
  6. Accounts Payable share of Revenues: As a percentage of revenue, NetApp invested 4.6% of its total revenues on Accounts Payable (A/P) Computers Systems and Peripherals industry average Accounts Payable investment in the same period was 17.5%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, NetApp invested 14.7% of its total revenues on Accounts Receivable (A/R). Computers Systems and Peripherals industry average Accounts Receivable investment in the same period was 13.0%
  8. PP&E share of Revenues: As a percentage of revenue, NetApp invested 16.9% of its total revenues on Property, Plants, and Equipments (PP&E). Computers Systems and Peripherals industry average PPE investment in the same period was 11.9%
  9. Intangibles share of Revenues: As a percentage of revenue, NetApp invested 33.5% of its total revenues on Intangibles. Computers Systems and Peripherals industry average Intangibles investment in the same period was 12.0%
  10. Net Margins: NetApp Net Margins in the year 2016 were 4.1%. Computers Systems and Peripherals industry average Net Margins in the same period were 15.9%

Sector and Industry Association of NetApp

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries.

NetApp is associated with Technology Sector and Computers Systems and Peripherals Industry.

Technology sector is comprised of the following industries: Computers Systems and Peripherals; Software; Semiconductor; IT Consulting and Outsourcing Services; Networking Equipment and Services; Internet; Other. The definitions for each of the industries is as follows:

  • Computers Systems and Peripherals industry includes companies primarily engaged in manufacturing of personal computers, servers, mainframes, workstations, and other computer accessories and peripherals such as storage drives, mice, keyboards and printers. It also includes manufacturers of mobile phones and tablets.
  • Software industry includes businesses providing software products such as operating systems, productivity suites, enterprise software, data and analysis software, advertising and marketing software, engineering and manufacturing software, networking software, and IT management software. It also includes companies providing industry-specific software focused on different sectors such as Financials, Automotive, Telecom, Utilities, Travel, Real Estate, Media, and Publishing.
  • Semiconductor industry includes companies primarily engaged in manufacturing and distribution of semiconductor products such as microprocessors, chipsets, motherboards, flash memory, and wired and wireless connectivity products. It also includes companies that provide semiconductor equipment and services to the semiconductor industry.
  • IT Consulting and Outsourcing Services industry includes companies primarily engaged in providing information technology consulting and outsourcing services to other businesses. The services include IT consulting, systems integration, application development and management, IT infrastructure management, and network operations management.
  • Networking Equipment and Services industry includes companies primarily engaged in manufacturing and distribution of networking and communications equipment for transporting data, voice, and video traffic across intranets, extranets, and the Internet. The key products include routers and switches for local and wide-area networks, cable modems, teleconferencing equipment, and wireless access points.
  • Internet industry includes Internet-based businesses providing products and services such as search engines, social networking, web hosting, email, domain name registration, and eCommerce. It also includes industry information/services portals focused on different sectors such as Financials, Automotive, Travel, Health, Real Estate, Media, and Publishing.
  • Other industry includes companies providing products such as photocopiers, fax machines, point of sale machines, audio/video technologies, and video games. It also includes technology companies that are not part of other six technology industries.

Industry Ranking of NetApp

With $5.5 billion revenues, NetApp ranked number 5 of all the companies in the US Computers Systems and Peripherals industry. There were a total of 20 public companies in the US Computers Systems and Peripherals industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Computers Systems and Peripherals industry by revenues during 2016 were:

  1. Apple ($215.6 billion)
  2. HP ($48.2 billion)
  3. Western Digital ($13 billion)
  4. Seagate Technology ($11.2 billion)
  5. NetApp ($5.5 billion)
  6. Diebold Nixdorf ($3.3 billion)
  7. Teradata ($2.3 billion)
  8. Super Micro Computer ($2.2 billion)
  9. AVX ($1.2 billion)
  10. Electronics for Imaging ($992.1 million)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of NetAppand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of netapp

HP (HPQ) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

HP Inc with $48 billion revenues in the year 2016 was the number 2 Computers Systems and Peripherals company. Read this report to know the top competitors of HP and identify growth and cost optimization opportunities of HP

Western Digital (WDC) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Western Digital Corp with $13 billion revenues in the year 2016 was the number 3 Computers Systems and Peripherals company. Read this report to know the top competitors of Western Digital and identify growth and cost optimization opportunities of Western Digital

Seagate Technology (STX) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Seagate Technology Plc with $11 billion revenues in the year 2016 was the number 4 Computers Systems and Peripherals company. Read this report to know the top competitors of Seagate Technology and identify growth and cost optimization opportunities of Seagate Technology

Diebold Nixdorf (DBD) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Diebold Nixdorf, Inc with $3 billion revenues in the year 2016 was the number 6 Computers Systems and Peripherals company. Read this report to know the top competitors of Diebold Nixdorf and identify growth and cost optimization opportunities of Diebold Nixdorf

Teradata (TDC) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Teradata Corp with $2 billion revenues in the year 2016 was the number 7 Computers Systems and Peripherals company. Read this report to know the top competitors of Teradata and identify growth and cost optimization opportunities of Teradata

Super Micro Computer (SMCI) Business Analysis – Analyze Historical Performance, Strategic...

Super Micro Computer, Inc. with $2 billion revenues in the year 2016 was the number 8 Computers Systems and Peripherals company. Read this report to know the top competitors of Super Micro Computer and identify growth and cost optimization opportunities of Super Micro Computer

Revenues Analysis

NetApp (NTAP) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of NetApp Inc (NTAP) from 2012 to 2016. NetApp generated a total of $5.5 billion revenues during 2016. NetApp reported a revenue growth of -9.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in April.

NetApp (NTAP) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of NetApp Inc (NTAP) from 2002 to 2016. NetApp generated a total of $5.5 billion revenues during 2016. NetApp reported a revenue growth of -9.4% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in April.

NetApp (NTAP) Revenue Growth Comparison With Industry Growth From 2012 To...

This report provides a comparison of NetApp Inc (NTAP) revenue growth with Computers Systems and Peripherals industry growth during the last five years from 2012 to 2016. NetApp reported a revenue growth of -9.4% year-over-year during 2016. The Computers Systems and Peripherals industry growth was -7.5% year-over-year during 2016. NetApp growth was slower than the industry during 2016.