NetApp says no one wants to buy NetApp

Warmenhoven on who could, but won't


No-one really wants to buy NetApp. There are five possibles but none of them has a problem that buying NetApp would solve better than any alternative. Really. That's NetApp CEO Dan Warmenhoven's view.

He listed the five possible suitors in a question and answer session at NetApp's Sunnyvale HQ this morning. In reverse order, beginning with the least likely candidate first, he named EMC, NetApp's foremost competitor, to gasps from the gathered employees and customers. He said EMC would love to consolidate the storage industry but anti-trust concerns would pose an insuperable obstacle with every EMC competitor making anti-trust complaints. Exit EMC.

Next up was Dell. He said Dell was struggling right now and it doesn't have the market capitalisation and market fire power needed. It's doing well with its EqualLogic acquisition. It's committed to that. And anyway, its problems are bigger than its storage product line. Drop Dell.

Then Warmenhoven named IBM as a more likely acquirer. But IBM already has pretty full access to NetApp products and technology through its OEM and reselling deal. It's also got too many storage product lines already. Ignore IBM.

Fourth on the list was HP. Mark Hurd has said he's pretty happy overall with HP's storage products and any development would probably be organic, so HP gets the heave-ho.

Which leaves...Cisco. It needs a storage product line to fill out its unified computing system but a likelier buy is EMC, because Cisco would get a broader set of businesses and a jewel in EMC's crown that it also needs for servers: VMWare. Count Cisco out.

Warmenhoven said: "I like being independent." And he and vice chairman Tom Mendoza both said NetApp would would be similarly bold and decisive in the future as it has been over the Data Domain acquisition. The signals are that NetApp wants to grow from a$3bn corporation to a $5bn one, and then on to a $10bn one. The way it's decided to do that is to buy complementary businesses to NetApp and win two ways.

The first way is by selling the bought company's products to NetApp's customers, getting a larger share of their spend. The second is by selling NetApp's products to the acquired company's customers. With the bulk of the top 5000 global storage buying customer accounts not yet NetApp customers, there is plenty of market headroom for growth.

What about EMC? Warmenhoven said EMC was vulnerable. It's main strength is its incumbency in accounts and that's not sustainable. Watch out Joe Tucci, Dan and Frank (Slootman) are starting out on a crusade to eat your lunch. ®

Similar topics


Other stories you might like

  • Amazon warehouse staff granted second chance to vote for unionization

    US labor watchdog tosses previous failed result in the trash

    America's labor watchdog has given workers at Amazon’s warehouse in Bessemer, Alabama, another crack at voting for unionization after their first attempt failed earlier this year.

    “It is ordered that the election that commenced on February 8 is set aside, and a new election shall be conducted,” Lisa Henderson, regional director at the National Labor Relations Board, ruled [PDF] on Tuesday.

    “The National Labor Relations Board will conduct a second secret ballot election among the unit employees. Employees will vote whether they wish to be represented for purposes of collective bargaining by the Retail, Wholesale and Department Store Union.”

    Continue reading
  • It's the flu season – FluBot, that is: Surge of info-stealing Android malware detected

    And a bunch of bank-account-raiding trojans also identified

    FluBot, a family of Android malware, is circulating again via SMS messaging, according to authorities in Finland.

    The Nordic country's National Cyber Security Center (NCSC-FI) lately warned that scam messages written in Finnish are being sent in the hope that recipients will click the included link to a website that requests permission to install an application that's malicious.

    "The messages are written in Finnish," the NCSC-FI explained. "They are written without Scandinavian letters (å, ä and ö) and include, for example, the characters +, /, &, % and @ in illogical places in the text to make it more difficult for telecommunications operators to filter the messages. The theme of the text may be that the recipient has received a voicemail message or a message from their mobile operator."

    Continue reading
  • AsmREPL: Wing your way through x86-64 assembly language

    Assemblers unite

    Ruby developer and internet japester Aaron Patterson has published a REPL for 64-bit x86 assembly language, enabling interactive coding in the lowest-level language of all.

    REPL stands for "read-evaluate-print loop", and REPLs were first seen in Lisp development environments such as Lisp Machines. They allow incremental development: programmers can write code on the fly, entering expressions or blocks of code, having them evaluated – executed – immediately, and the results printed out. This was viable because of the way Lisp blurred the lines between interpreted and compiled languages; these days, they're a standard feature of most scripting languages.

    Patterson has previously offered ground-breaking developer productivity enhancements such as an analogue terminal bell and performance-enhancing firmware for the Stack Overflow keyboard. This only has Ctrl, C, and V keys for extra-easy copy-pasting, but Patterson's firmware removes the tedious need to hold control.

    Continue reading

Biting the hand that feeds IT © 1998–2021