NetApp Says Sales Growth Driven by Indirect Channel
One driver behind NetApp Inc.'s 33 percent jump in revenue to $1.17 billion in its recently completed fiscal fourth quarter is the continued growth of its indirect channel, which the vendor says is growing at a noticeably faster clip than its direct sales.
The enterprise storage and data management vendor said that revenue generated from the channel accounted for 71 percent of its sales, a 19 percent increase quarter-over-quarter and a whopping 40 percent jump from the same period last year.
By comparison, NetApp's direct sales showed a 10 percent sequential uptick and a 19 percent jump year-over-year.
Among NetApp's channel partners, Arrow Electronics Inc.'s Enterprise Computing Solutions distribution arm is the current heavyweight, accounting for some 16 percent of indirect sales in Q4 with Avnet Inc. generating about 11 percent, a 1 percent dip from the prior quarter.
NetApp said that its top 100 accounts contributed about 42 percent of the company's revenue for the fourth quarter, matching the level of the previous fiscal period.