NetApp’s AI data push could wake up legacy storage market

NetApp has been working for three years to position itself as a key player in enterprise AI data infrastructure, and some observers suggest the effort is starting to gain attention. The company’s Novus architecture, designed to help move AI workloads from pilot to production, is reportedly reaching buyers who may not have previously considered storage a priority. If true, this would mark a rare opportunity for a legacy provider in a sector where incumbents often struggle to adapt.

The timing aligns with AI’s growing demand for data, which has forced companies to rethink their infrastructure. Some reports indicate NetApp is now emphasizing data accessibility and efficiency—areas where AI teams have expressed frustration with traditional storage systems. This could be a strategic move, though it also carries risks: NetApp faces competition from well-funded startups building solutions specifically for AI’s requirements.

Recent funding rounds highlight the challenge. Emerald AI raised $150 million to address AI-driven power demands, while Delos Data, founded by former Intel engineers, secured $100 million to improve data movement in AI data centers. Together AI is also expanding its compute partnerships overseas. These startups lack NetApp’s legacy constraints and may be able to move faster. Delos, for example, is targeting similar inefficiencies as Novus but with a fresh approach that could prove more adaptable.

If NetApp has an edge, it might be its existing customer relationships and enterprise experience. The company isn’t entering the market cold; it’s pitching to IT teams already familiar with its products. However, this advantage is not guaranteed. AI workloads require low latency and simplicity, and NetApp’s multi-year transformation suggests it may be responding to market shifts rather than driving them. The real test will be whether the company can deliver at the speed AI demands—not just in pilot projects, but in full-scale deployments.

The idea of NetApp as a "sleeping giant" implies a sudden awakening, but for those who’ve followed its gradual pivot, the shift may feel less dramatic. The critical question is whether Novus can meet AI’s scale and performance needs. Until then, NetApp’s resurgence remains more of a possibility than a proven success.

What’s next? Adoption trends will matter. If Novus gains traction beyond early adopters, it could signal NetApp is making progress. If not, the company may struggle to keep up with startups that are unencumbered by legacy expectations. The storage market’s AI moment is here, but NetApp’s role in it is still uncertain.

Sources: siliconangle.com