Shares of data management and cloud storage provider NetApp (NTAP) fell on Thursday afternoon, reversing the marginal gain from the previous day.
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This is despite the California-based company’s new series of collaborations with Alphabet’s (GOOGL) cloud computing unit Google Cloud, AI infrastructure and networking suppliers Cisco (CSCO) and Broadcom (AVGO), and German enterprise software heavyweight SAP (SAP). The partnerships were announced on Tuesday.
NetApp Extends Collab with Google Cloud
NetApp’s latest partnership with Google Cloud, Alphabet’s cloud computing unit, is aimed at helping customers shift their IT operations to the cloud and solve major business problems. Specifically, NetApp is offering new block storage capabilities on Google Cloud NetApp Volumes, its storage service that combines enterprise storage features with Google Cloud’s flexibility.
The new capabilities include features such as the ability to store multiple data types for diverse workloads, along with AI-powered options for machine-managed or user-managed data handling on shared infrastructure.
NetApp Taps Cisco for New Architecture
On the other hand, NetApp in partnership with Cisco introduced the NetApp AFX architecture, which is designed to connect servers and storage devices in a data center using Cisco Nexus networking switches.
The new offering fits into both businesses’ plans to help their customers build the foundation for mission-critical AI applications. They also plan to extend the architecture to FlexPod AI, a platform jointly developed by both companies and tailored for AI workloads to offer computing, storage, and server networking features.
NetApp Offers Storage Solution to SAP Customers
Similarly, NetApp is part of a new partnership between Broadcom, Kochasoft, Equinix (EQIX), and SAP. They are working together to offer a new service designed for companies using SAP’s newer SAP S/4HANA or older SAP business management software.
Instead of installing SAP on their own hardware, companies can now use a hosted service where SAP runs on shared infrastructure managed by experts. This setup uses VMware Cloud Foundation, an integrated stack of software that enables organizations to build and run private, public, and hybrid clouds.
NetApp comes in by providing NetApp ONTAP, its storage operating system, to manage and protect the data involved.
Is NTAP Stock a Buy?
Turning to Wall Street, NetApp’s shares currently have a Moderate Buy consensus rating, as seen on TipRanks. This is based on four Buys and 10 Holds issued by 14 Wall Street analysts over the past three months. Moreover, the average NTAP price target of $120.50 offers less than 1% growth possibility from the current level.
