SAN JOSE, Calif. - NetApp (NASDAQ: NASDAQ:NTAP), a company specializing in intelligent data infrastructure, has expanded its collaboration with Google (NASDAQ:GOOGL) Cloud, introducing a new service level for Google Cloud NetApp Volumes and a preview of its GenAI toolkit. This partnership aims to simplify the use of data for generative AI (GenAI) and other hybrid cloud workloads.
The new service level, named Flex (NASDAQ:FLEX), offers customers scalable storage volumes from one GiB to 100TiB and performance up to one GiB/s, depending on the storage pool size. Flex is designed to provide highly available storage with the flexibility to support a range of applications, including AI. This service complements existing service levels—Standard, Premium, and Extreme—each catering to different performance needs.
Pravjit Tiwana, Senior Vice President and General Manager of Cloud Storage at NetApp, emphasized the need for a unified data storage approach that allows organizations to move and store data as needed. According to Tiwana, the extended partnership with Google Cloud delivers a flexible solution without compromising enterprise data management capabilities.
Flex will be available by Q2 2024 across 15 Google Cloud regions, with plans to expand to additional regions by the end of the year.
In addition to Flex, NetApp is releasing a preview of its GenAI toolkit, which supports RAG operations using the Google Cloud Vertex (NASDAQ:VRTX) AI platform. The toolkit and reference architecture aim to streamline the implementation of RAG operations and enable secure, consistent, and automated workflows. These tools are designed to connect data stored in NetApp Volumes with Google Cloud Vertex AI, enhancing the generation of insights and automations.
The GenAI toolkit offers features such as automated data classification and tagging, fast and scalable snapshots, and real-time cloning at scale. These capabilities are intended to optimize RAG processes, reduce risks and costs, and shorten the time to results.
SADA's CTO, Miles Ward, expressed enthusiasm for the potential of NetApp and Vertex AI to accelerate customers' AI endeavors, highlighting the shift towards data-driven insights.
The public preview of the GenAI toolkit is expected to be available in the second half of 2024. More information about the Flex service level and the GenAI toolkit can be obtained at the NetApp booth at the Google Cloud Next 2024 conference.
This news article is based on a press release statement.
InvestingPro Insights
As NetApp (NASDAQ: NTAP) forges ahead with its collaboration with Google Cloud, it's also worth noting the company's robust financial performance and strategic market maneuvers. According to real-time data from InvestingPro, NetApp boasts a strong market capitalization of $21.2 billion, reflecting investor confidence in its market position and future prospects. The company's commitment to returning value to shareholders is evident through a high shareholder yield, a point underscored by one of the InvestingPro Tips, which also highlights management's aggressive share buyback strategy.
With a P/E ratio standing at 22.92, and an adjusted P/E ratio for the last twelve months as of Q3 2024 at 21.57, NetApp's valuation metrics suggest a company with a solid earnings foundation. The strong gross profit margin of 70.09% further reinforces NetApp's ability to manage costs effectively while generating significant income from its sales. This financial health is a reassuring sign for stakeholders as the company invests in new technologies like the GenAI toolkit.
Investors looking to delve deeper into NetApp's financials and strategic outlook can find additional insights with InvestingPro. There are 17 analysts who have revised their earnings upwards for the upcoming period, indicating potential positive momentum. Moreover, the company has been profitable over the last twelve months, and analysts predict profitability will continue this year. For those interested in exploring further, there are 12 more InvestingPro Tips available, which can be accessed through the dedicated NetApp page on InvestingPro. To enhance your investment research experience, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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