How India is a shining star driving growth for data management firm NetApp

US-based storage and data management firm NetApp that has over a quarter of its employees based in India saw a robust growth in the country last year and it remains optimistic about the market, buoyed by the hybrid-multicloud, artificial intelligence (AI) and enhanced cybersecurity trends.

The data storage company’s Indian arm saw nearly 25% jump in revenues for the year ended March 2023, in sharp contrast to the otherwise modest headline numbers by the parent company.

Revenues shot up to around $200 million after sporting near about 10% growth or less in the previous four years, as per data collated by financial research platform VCCEdge.

To be sure, India still remains a small part of the bigger picture for NetApp, representing under 5% of its global topline. But it is shining bright.

NetApp’s global revenue for the 12 months ended January 31, 2024 was pegged at $6.18 billion, a 4.33% decline year-over-year. NetApp annual revenue for 2023 was $6.36 billion, almost flat over 2022.

On the flip side, NetApp is deriving lower margins in the country even as its business is growing. Net profit has shrunk by more than a third from the pre-pandemic high.

NetApp spokesperson declined to comment on its India numbers. But in an interview with TechCircle last September, Chief Executive George Kurian stated that India is one of NetApp's top three markets in Asia and in the next five years, it will be the number one contributor in the continent.

The firm has a global center in Bengaluru, its largest worldwide, with over 3,000 employees, representing over a quarter of its global workforce of 12,000. The center manages all global functions, including go-to-market, technology operations, customer support, research and development, and serves as a hub of innovation and revenue generation.

According to the company, its focus on hybrid-multicloud and security has given it an edge over many of its peers. In an interview with TechCircle in December, Mignona Cote, cybersecurity evangelist and Chief Security Officer at NetApp, emphasized the importance of improved automation and increased cyber resilience across hybrid cloud environments.

Cote had said, "Close to 75% of our staff comprises security engineers because we build technology with security baked into it. Additionally, 50% of our security staff is based in India, mostly in Bangalore, and they work with cutting-edge technologies and products."

One of the significant challenges in managing a hybrid-cloud environment is finding tools to securely manage resources across cloud boundaries.

With a prestigious clientele including Disney and DreamWorks, NetApp also collaborates with government bodies in 22 Indian states and conducts business with the top six IT firms and top 10 financial institutions in the country. NetApp had suggested that the company is experiencing success in predictive AI used in manufacturing, financial services, life sciences, and other sectors.