NetApp profit rises on higher enterprise spending

NetApp Inc reported better-than-expected first-quarter profit as businesses spent more to replace their ageing storage equipment. Increased sales of products sold under the NetApp brand assuaged some investors' concerns that the company was losing business to newer and cheaper flash-based storage technology vendors such as Nimble Storage Inc and Pure Storage. "What's different (this quarter) overall is we got some rebound in enterprise spending in our larger U.S.-based accounts," Chief Executive Tom Georgens told Reuters. "We saw a much larger number of $1 million-plus transactions this quarter than we saw in Q1 a year ago." NetApp and larger rival EMC Corp are trying to boost growth by focusing on products such as flash-based storage and software-based technologies as businesses cut spending on high-end storage products for cheaper alternatives.



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