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NetApp Strengthens Partnership With Google Cloud: Stock to Benefit?

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NetApp, Inc. (NTAP - Free Report) has expanded its partnership with Google Cloud by integrating unified data storage and intelligent services into the Google Distributed Cloud architecture. 

With Google Distributed Cloud, customers can enhance their cloud infrastructure by extending services to on-premises data centers and network edges. This allows organizations to utilize cloud technology and artificial intelligence (AI) capabilities while maintaining greater control over their IT environments. By positioning the cloud closer to data generation or creating “air-gapped environments,” organizations can better safeguard their data. NetApp's intelligent data infrastructure, bolstered by ONTAP and StorageGRID solutions, empowers customers to efficiently scale workloads and harness AI while ensuring security and regulatory compliance. Google Distributed Cloud will also use these capabilities to enhance its services, including databases, AI and analytics.

This partnership allows customers to streamline their reliance on multiple solutions across cloud, data center and edge environments while maintaining strong compliance and security. It simplifies processes and boosts agility, enabling quicker adaptation to emerging trends and changes in operating conditions.

This particular integration will benefit organizations, particularly in the public sector and regulated industries, which can now leverage AI-ready infrastructure while ensuring robust security and compliance with regulatory standards.


Organizations in highly regulated sectors, such as government, manufacturing, telecom and retail, aim to leverage AI for innovation. However, they face challenges from emerging regulations on data sovereignty and consumer privacy as they modernize their IT workloads. To navigate these hurdles, they must protect and govern their data effectively. NetApp's collaboration with Google Cloud offers foundational data storage for Google Distributed Cloud offerings, allowing organizations to innovate securely while ensuring compliance and supporting application development.

 

NTAP to Gain From Collaborations & AI Momentum

NetApp’s efforts to drive efficiency and foster innovation are evident from the growing strategic collaborations. Recently, it announced an advancement in generative AI, combining its data management expertise with NVIDIA’s AI software and accelerated computing. The partnership is aimed at boosting enterprise retrieval augmented generation (RAG), which will unlock the power of next-gen agentic AI. 

The company has also deepened its collaboration with Amazon Web Services to improve customer experiences through accelerated generative AI initiatives, simplified processes and valuable CloudOps solutions.

Again, increasing demand for its solutions amid rapid AI proliferation is driving NTAP’s performance. In the fiscal first quarter, the company won more than 50 AI and data lake modernization deals. Witnessing the continued momentum across flash, block, AI and cloud storage solutions, management has tweaked its outlook for fiscal 2025. It now expects full-year revenues in the range of $6.48–$6.68 billion, up 5% year over year at the mid-point. These expanded partnerships to boost AI innovation are expected to generate incremental revenues for NTAP in the near future, likely propelling the stock upward.

NTAP’s Zacks Rank & Stock Price Performance

NTAP currently sports a Zacks Rank #1 (Strong Buy). Shares of the company have gained 66.9% in the past year compared with the sub-industry's growth of 12.7%.

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Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Seagate Technology Holdings plc (STX - Free Report) , OptimizeRx Corporation (OPRX - Free Report) and American Software, Inc. .  Both STX & OPRX presently sport a Zacks Rank #1, whereas AMSWA carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Seagate Technology delivered an earnings surprise of 80.9%, on average, in three of the trailing four quarters. In the last reported quarter, STX pulled off an earnings surprise of 40%. The Zacks Consensus Estimate for its earnings has increased 18% to $7.41 in the past 60 days.

OptimizeRx delivered an earnings surprise of 159.5%, on average, in three of the trailing four quarters. In the last reported quarter, OPRX pulled off an earnings surprise of 128.6%. The Zacks Consensus Estimate for its earnings has increased 38.5% to 36 cents in the past 60 days.

American Software delivered an earnings surprise of 84.5%, on average, in the trailing four quarters. In the last reported quarter, AMSWA pulled off an earnings surprise of 71.4%. The Zacks Consensus Estimate for its earnings has increased 8.6% to 38 cents in the past 60 days.


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