A big part of NetApp's growth is coming from the channel, Warmenhoven said.
About 46 percent of the company's revenue came from indirect channels this past quarter, compared to 43 percent in the previous quarter. Quarter-to-quarter revenue growth during that time was 6 percent, he said. Sales through Arrow and Avnet, both of which distribute NetApp's products, grew 8 percent during that time, he said.
The company has been improving its training and support of the channel, and is nearing its goal of providing its channels with products and support on the same day they are released to its direct sales, Warmenhoven said. "We think of the channel as an extension of our own sales and support facilities," he said.
Sales of the company's FAS250 and FAS270 SAN and NAS appliances, the bulk of which go through the channel, rose 9 percent in the first quarter to account for 46 percent of the company's NAS Filer business, he said.
Also on the product side, NetApp is showing strong growth in its SAN, IP SAN, NAS and software products, Warmenhoven said. Its strongest hardware growth comes from its NearStore line of ATA-based storage appliances, which grew 25 percent quarter-to-quarter. The company also is emphasizing its software offerings as a value-add to its hardware business, he said.
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