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Network Appliance Sees Opportunity In New Markets.(INTERNET & TECHNOLOGY)(Q & A)
Byline: Brian Deagon
Network Appliance Inc. broke the $1 billion revenue mark in its fourth quarter, which ended April 30. That's a healthy 74% increase from the year before.
Network Appliance has been a pioneer in a data storage field known as network attached storage, or NAS. Originally written off as a niche technology,NAS is now entrenched in the business world. Because of its ease of use and affordability, even small companies can organize their data storage needs by using NAS.
But with success comes competition. In the past year, several large data storage companies, EMC Corp. among them, have taken aim at the NAS market. The ultimate goal in data storage is to unite low-end systems such as NAS with the high-end systems of EMC, IBM and others.
While the data storage market is hot, it also was hit by the recent slowdownin technology spending. Thomas Mendoza, president of Network Appliance, talkedwith Investor's Business Daily about recent trends in storage.
IBD: Can you say something about information technology spending?
Mendoza: Spending on information technology as a percent of revenue is off 20% to 40%. Companies have had to redo their priorities. They may choose to accelerate spending later, but right now they are holding back.
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