NetApp sells data storage hardware, software, and cloud services to large enterprises in sectors such as financial services, healthcare, and government. The company provides data storage infrastructure that manages and protects enterprise data across on-premises data centers and public clouds. This infrastructure runs on ONTAP, a data management operating system that functions on NetApp hardware and as cloud-native software on Amazon Web Services, Microsoft Azure, and Google Cloud. NetApp generates revenue through one-time hardware sales, recurring support contracts, and cloud-based subscription services. The company relies on its installed base to generate recurring revenue, as each hardware sale leads to multi-year maintenance contracts. NetApp operates through two segments: Hybrid Cloud, which includes all-flash and hybrid-flash arrays, and Public Cloud, which offers native storage services on major hyperscale platforms. NetApp focuses on transitioning customers to all-flash storage and expanding the Keystone Storage-as-a-Service offering to drive growth. The company also sells infrastructure for artificial intelligence workloads to help customers organize and use unstructured data for model training and inferencing. NetApp sells its products primarily through a network of resellers and distributors, while a direct sales force manages its largest accounts.
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