Network Appliance Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance

NTAP 115.99

+1.1%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mitch Vine who wrote (327)	7/14/1998 6:27:00 PM
From: Fortney Veeble	of 10934

Netapp is best described as selling "tin-wrapped software." (I am stealing this phrase from CEO Dan Warmenhoven, who used it in a stockholders' meeting two years ago.) You have heard of "shrink-wrapped" software - well, Netapp wraps their software in "tin" - i.e., the appliance. The beauty of their business is that they buy the hardware (most of it standardized) and just load their software into the purchased hardware. One reason this is a nice business model is that Netapp can grow very fast. Another is that increased sales leverage increased profits (the marginal cost of copying software is small, hence the gross margins are potentially large). The fact that Netapp has a very elegant software solution will allow them to outdistance competitors in the filer appliance market. (It's a great idea, and, IMO, a great stock.)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next