If a survey of 15 VARs is a good indication, Network Appliance products are not only selling above plan, the NetApp partners selling them are shifting more of their sales efforts toward the NetApp products.
In a study published today, Robert W. Baird & Co. reports that all but one of 15 NetApp partners surveyed are either on or above their quarterly sales targets. NetApp’s indirect channel represents more than 60% percent of the company’s revenues.
Based on the interviews with NetApp partners – with a combined annual revenue of $1.8 billion –NetApp’s long-term competitive position remains solid.
The report also predicts that EMC’s new product offerings – which are designed to compete directly with NetApp — are likely to put greater competitive pressure on NetApp, but won’t be enough to curb NetApp’s growth rates of between 20% and 25% per year.
NetApp is growing roughly three times faster than the industry largely due to the company’s easy-to-use solutions and its commitment to a single operating system across product families which translate to the technology managing more storage with less people, the Baird report said.
NetApp stands to make further gains from its two-year-old OEM agreement with IBM. Under the agreement several NetApp products are re-branded and distributed by IBM. The agreement will further drive incremental growth and distribution of NetApp’s products through IBM’s global channels, the report said.