IBM Stops Selling NetApp Units

To read this article from Bloomberg, click on:
IBM Stops Selling NetApp Units in Favor of Own Storage Devices
IBM plans to formally withdraw from selling NetApp’s new N series systems on May 27 and shut down development on the product line, according to an internal memo reviewed by Bloomberg. Instead, the company will encourage clients to buy IBM-made offerings, the memo said.

Comments

Since April 6, 2005, IBM and NetApp have been partnered in an OEM relationship. Through this agreement, IBM provided the NetApp FAS series products as the IBM N series and also offers most of the NetApp software portfolio.

"Combining IBM's leading windows and server technologies with NetApp's industry-leading storage solutions creates a compelling value proposition for customers who are seeking storage efficiency and virtualization solutions in their data centers," commented NetApp at this time in a press release.

Later, on October 27, 2009, the two companies announced a global alliance agreement to complement the existing N series OEM partnership between NetApp and IBM.

For its fourth quarter ended April 25, 2014, NetApp's sales to OEMs including IBM declined further than expected and was down 30% from the former quarter and 34% from one year ago.

For the fiscal year, NetApp anticipates mid single-digit branded revenue growth ramping over the course of the year and partially offset by declines in OEM sales of up to 40%.

IBM was the largest OEM of NetApp, getting around 2% of its revenue from Big Blue.