Netapp

NetApp

Net app has shown phenomenon growth in the recent years and have set a strategic goal which they call 3x3 - reaching to a $3 Bil revenue in 3 Years. NetApp has been a leader in Network Attached Storage (NAS) and is eyeing other venues to gain the market share and increase revenue. One of the biggest value proposition which NetApp brings to the table is the simplicity to use its products. The company has built a very strong direct sales force and it generates about 60% of the revenue it gets today.

Based on the information in the paper, it can be deduced that NetApp has a few area which it has to work on, first being the brand awareness, as a lot of customers prefer to reorder from the trusted vendor they know, the low brand awareness is a crucial factor to be addressed. I would recommend the company to spend $35- $55Mil if required to spread its name in the market.

Secondly it is important to venture into new markets and have strategic partners. Having partners helps in speeding up the process of getting to the customer and have a common goal. The paper calls for partnering up with Server and Application vendors (Integrators). I believe it will be a great option to pursue, even if this may be time consuming but this ties in with partnering with companies who are well aware of the product and are in contact with customers who need the solution. Also based on the data, the customers spend a higher % of share on storage and services.

I would also recommend NetApp to establish an alliance with the 2 tier sales Channel - keeping in mind that the goal is to reach a revenue of $3 Bil and all the sales may not have a high %GM attached to it. The advantage of getting a 2 tier sales channel is that NetApp will get a parallel sales force along with the existing direct sales along with their contacts. The cost which NetApp pays will be a lower GM for that channel but I would recommend this path as it ties in with brand awareness and working with integrators