According to the company, its “technology approach to halting power growth is to provide solutions that reduce raw storage and improve storage utilization to enable customers to do more with the storage systems already in their IT environments.” For example, the company’s FlexVol technology enables customers to consolidate their data, thereby improving energy efficiency and increasing storage utilization rates to 60%, compared with the 25-40% average for other storage systems. The company’s SATA (Serial Advanced Technology Attachment) disk drives consume approximately 50% less power (per terabyte of data storage capacity) than equivalent Fibre Channel drives. NetApp has published a white paper entitled “Reducing Data Center Power Consumption through Efficient Storage” in which it notes that replacing 11 older systems with one modern high capacity system would result in a 16% increase in data storage capacity, an 81% reduction in power consumption, and a 93% reduction in space (and associated heating and cooling) requirements.
NetApp outsources the manufacturing of its products; contract manufacturers are required to be ISO 14001 certified, and all products, regardless of their point of sale, meet the requirements of the European Union’s Restriction of Hazardous Substances Directive. We would, however, like to see the company make its supplier guidelines publicly available. An immediate area for improvement for NetApp is its environmental reporting and accounting.
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 1/31/13 and may not reflect current opinions or subsequent events.