In a recent customer meeting, Steve Averay - one of our strongest Enterprise sales executives - told his C-Level audience: “If you’re just using your NetApp systems as storage arrays, you’re realizing less than half of their real value.”
Previously, I wrote about how fewer than 1% of application developers and their executives had heard of NetApp, much less understood the tremendous value we bring to their organizations. In this blog, we’ll look at some numbers, ratios validated across multiple customers and partners, that quantify the benefits NetApp brings to the application development community.
Let’s say an organization spends $10M annually on hardware infrastructure, with somewhat less than half, or $4M, going to storage. NetApp, along with our partners Cisco and Red Hat, engage in a bid, and present a compelling value proposition with a 35% TCO improvement achieved by migrating from legacy UNIX/SAN to Linux/NAS. To everyone involved, this looks exciting and compelling, right up to the point it’s put into the context of the larger project.
Customers spending $10M on infrastructure are likely spending five to eight times that amount on developing and maintaining applications. This customer spends $60M on application development, both internally and through contracts with a systems integration partner, such as Infosys, Wipro, or Accenture. In this larger context, the $3.5M savings in infrastructure now amounts to a 5% TCO improvement. The cost and risk of migration don’t justify such a move. Even if NetApp were to give the storage away for free, migration risks would still outweigh the hardware TCO benefit.
This is where NetApp’s value proposition of accelerating the application lifecycle comes in. NetApp consistently demonstrates the ability to save customers in excess of 20% on their application development cycles, while simultaneously improving productivity, product quality, and time to value. This is the big story behind ING Direct, Thomson Reuters, Seven Corners, and multiple other clients who leverage the full value of their NetApp systems to drive substantial top and bottom line growth for their companies today.