- Believing flash/hybrid storage array upstarts and cloud storage providers are eating into the companies' sales, Piper has downgraded EMC (EMC -0.3%) and NetApp (NTAP -1.7%) to Neutral, and respectively cut its targets to $27 and $36.
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Piper: "We continue to hear, Pure Storage and other vendors such as Nimble Storage (NMBL -1.1%) are making inroads into the installed base of EMC." The firm also sees price pressure intensifying - both cloud infrastructure giants and newer storage array providers have often been pricing aggressively. SanDisk is the latest example of the latter.
- Overall, Piper sees EMC better positioned to handle the threat than NetApp. It predicts NetApp (has been cutting costs) will be forced to up its sales/marketing spend, and expects this to "result in a significant reduction in earnings growth over the next two years."
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Yesterday: NetApp's FlashRay chief leaves for Pure Storage
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Two weeks ago: EMC looks to boost growth via 6 "strategic investments."
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January: Piper downgrades NetApp over "competitive risks"