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NetApp partners with Google Cloud to enhance AI security

Published 01/10/2024, 10:22 pm
NTAP
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SAN JOSE, Calif. - NetApp (NASDAQ:NTAP), a company specializing in intelligent data infrastructure, has announced the expansion of its strategic partnership with Google (NASDAQ:GOOGL) Cloud. This collaboration integrates NetApp's unified data storage and services into the Google Distributed Cloud architecture, aiming to provide organizations, particularly in the public sector and regulated industries, with AI-ready infrastructure while ensuring compliance with stringent security and regulatory standards.

The partnership addresses the needs of organizations in sectors such as government, manufacturing, telecom, and retail, which are increasingly seeking to innovate through AI while navigating the complexities of data sovereignty and consumer privacy laws. NetApp's contribution to Google Distributed Cloud is designed to enable these organizations to manage their data effectively, ensuring compliance and fostering secure application development.

Google Distributed Cloud offers customers the ability to extend their cloud infrastructure to various locations, including on-premises data centers and network edges. This approach allows for the use of cloud technology and applications, including AI capabilities, while providing more control over IT environments and potentially creating air-gapped environments that limit connectivity for enhanced security.

NetApp's data infrastructure technologies, including NetApp ONTAP® and StorageGRID solutions, are intended to provide improved control over data, helping organizations scale their workloads, leverage AI, and maintain security and regulatory compliance. These capabilities are also leveraged by Google Distributed Cloud to support its own services, such as databases, AI, and analytics.

Cesar Cernuda, President at NetApp, highlighted the importance of the partnership in making AI innovation accessible while navigating regulatory challenges. NetApp's intelligent data infrastructure enables Google Distributed Cloud to offer tailored AI-ready solutions for the public sector and regulated industries.

The collaboration promises to simplify the management of distributed cloud solutions, reducing the need for disparate solutions across cloud, data center, and edge environments. This integration is expected to increase agility and allow organizations to adapt to emerging trends and changes in their operational landscape more effectively.

Sameet Agarwal, General Manager and Vice President of Storage at Google Cloud, emphasized the benefits of the partnership, including localized processing, rapid scalability, and enhanced security, which are crucial for organizations in regulated sectors pursuing data-driven innovation.

This news is based on a press release statement from NetApp, Inc.

In other recent news, NetApp has reported a promising 8% year-over-year increase in revenue for the first quarter of fiscal year 2025, accompanied by record-breaking operating margin and earnings per share. Following these strong results, NetApp revised its revenue and profit outlook for the fiscal year upwards. The company has also announced a significant partnership with NVIDIA (NASDAQ:NVDA) to integrate advanced AI capabilities into its data infrastructure and expanded its collaboration with Amazon (NASDAQ:AMZN) Web Services to accelerate generative AI efforts and enhance cloud operations.

NetApp's shareholders approved a significant amendment to its 2021 Equity Incentive Plan, aligning it with current compensation governance standards. Analyst firms Loop Capital and TD Cowen have shown confidence in NetApp's progress, with Loop Capital upgrading the company's stock from Hold to Buy and TD Cowen reiterating a Buy rating.

In leadership developments, Gus Shahin has been appointed as NetApp's Executive Vice President of Business Technology and Operations, while CFO Mike Berry announced his retirement effective at the end of the fiscal year. These are some of the recent developments at NetApp.

InvestingPro Insights

NetApp's strategic partnership with Google Cloud aligns well with its strong market position and financial performance. According to InvestingPro data, NetApp boasts a market capitalization of $25.29 billion, reflecting its significant presence in the Technology Hardware, Storage & Peripherals industry. This collaboration could further solidify NetApp's market standing and potentially drive growth.

The company's financial health appears robust, with a revenue of $6.377 billion in the last twelve months and a healthy gross profit margin of 71.11%. This strong financial foundation provides NetApp with the resources to invest in strategic partnerships and innovative solutions, such as those being developed with Google Cloud.

InvestingPro Tips highlight that NetApp has maintained dividend payments for 12 consecutive years, demonstrating a commitment to shareholder returns. This consistency in dividend payments, coupled with a current dividend yield of 1.68%, may appeal to income-focused investors interested in the company's long-term prospects.

Moreover, NetApp's management has been aggressively buying back shares, which could indicate confidence in the company's future performance and potentially support stock price appreciation. This aligns with the company's impressive one-year price total return of 66.25%, suggesting strong market confidence in NetApp's strategic direction and growth potential.

For investors seeking more comprehensive insights, InvestingPro offers 11 additional tips for NetApp, providing a deeper understanding of the company's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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