NetApp Earnings Preview: Services To Drive Earnings

NetApp's hardware maintenance revenues have witnessed double digit annual growth in nine consecutive quarters. In the most recent quarter, the company witnessed a 10% y-o-y rise in hardware maintenance support contracts revenue to $316 million. Similarly, full year hardware maintenance contracts revenues for 2014 were up by 10% y-o-y $1.2 billion. NetApp's services revenues are likely to be boosted in the coming quarters due to strong demand for enterprise service agreements from its larger clie...