Yes, it’s a fact that NetApp has embarked on one of the most vast transformation efforts of our time. The desire is to present the full customer experience through our vast network of value added resellers and partners in general. The end result is the transition of internal resources to partners. The end result is an end to end solution delivered through the partner channels exclusively and not a portion through NetApp such as it’s been conducted historically. Staff being displaced are being given significant notice of 60-120 days of continuous pay and benefits in general at time of notice. Employees are advised to pursue outside employment at time of notice and career displacement services are additional benefits available. The actual number of employees being displaced is estimated to be 2,500 employees spanning multiple departments globally including those in technical and sales roles in general. I’m simply trying to set the record straight in light of the flurry of random negative comments.
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Look at where they are today. They laid off most of their SME and PS resources over the past few months. Sales staff has been shook to their core. Henri is clearly struggling and he’s out of his mind with the current failing strategy. Stock is taking a dive. People are quitting. Goodbye NetApp.
I don't accept NetApp SEs are lazy, I'd say the squeeze is on the SMEs. The partner doesn't understand the NetApp product then goes to the SE who can only be high level across a huge portfolio and then need a SME. The can is kicked partner to NTAP SE to SME.
SMEs are hard to grow with the exception of cloud, as, well, storage is yawning boring, it just needs to be reliable and take the least effort to be reliable, and why would you want to invest in NTAP specific skills when NTAP is a shrinking business.
The risk is the partner just want to deal with NTAP as the SMEs are not there in sufficient time, quantity, location and skill. All you did with dumping sales into the partner is lower revenue greater than your lowered cost of sale, i.e. backwards.
Also the person(s) doing fake news and all the negativity, get rid of that chip on your shoulder, its only a job and if you have resentment then you probably deluding yourself thinking NTAP a great place to work in the first place.
It’s Friday! I survived another week, but admittedly, it’s been slow. More leadership has resigned. It’s clear to me, it’s time to find a new job.
PS has been laying off consistently for years. I think it’s easy to understand why given the other background. If they are transitioning sales to third party channels, the PS revenue should go to those channel partners too. The reality is current NetApp FTE sales teams are worthless without a SME and the SE’s at NetApp are some of the laziest and ignorant in existence. Channel Partners aren’t any better technically. So, if the channel partners have no NetApp SME to support them, I don’t know how they will ever win a complex deal. Goodbye NetApp! Hello competition. NetApp would be better off calling themselves a PAAS or IAAS company. Simply start selling everything like Amazon does. That makes more sense than their current approach to sell commodity hardware in general through third parties exclusively outside of e-1000 clients. Time for GK to be replaced. He’s clearly out of his league. Bring in a young CEO ( mid 30’s) who knows the PAAS/IAAS world in general. NetApp might have a fighting chance to preserve their currently very weak legacy. Where’s DH? That’s right?! He pulled the plug. That should tell you everything you need to know about the future of NetApp.
Given the history of NetApp, I predict they will have one heck of a time hiring any great resources in general. So, when their latest transformation plans fail, here’s to hoping the truth of the mater results in their demise. Put a bullet innit already. NetApp is C R A P without real people backing their ancient products. CDOT is more buggy today than when WAFL was in its prime. That says a lot about the reality of the matter.
It's not just NetApp.. Many other public companies bring in consultants like Bain, Boston Consulting Group and the likes, who then tell them the same thing.. transform their workforce such that they have direct field reps/resources focused on the top tier of accounts, and then for the smaller commercial segments (where it doesn't really matter as much if you win/lose a sub-$100k deal), have the partners or a remote/inside-sales organization of young reps willing to work for a fourth of the price. Even if you lose half those deals as a result, since it's significantly smaller deals and lower number than you get from the top accounts, it makes sense to the shareholders.'
Just a matter of time though before those same shareholders point out that NetApp isn't capturing as many new logos/losing customers in that segment and they bring in new consultants who recommend they hire a large sales team to focus on that commercial segment and the cycle starts all over again.
Bingo! One last hoorah so GK and team can grab stock and basically benefit themselves before someone buys them or puts a bullet in them. Sales staff is already getting screwed so, transitioning the full experience to partner channel makes sense given the ignorance of already laying off all the SME’s.
Odd you're saying sales too. There is active recruitment in SEs. Are you sure its not just Professional Services only?
It still puzzles me why they have the SVL HQ, it's expensive part of the world to hire / retain staff and "at will" employment means best people can work across the street easily if you remotely offer less than the best package. So if GK is punting the sales role, which is customer facing, to partners, you don't need your own sales people in SVL?
Agree with the earlier comment, an indirect sale is a weaker sale, the channel have little loyalty and may introduce more often non-NetApp components. NetApp's products are so numerous and complex even as a NetApp exclusive sales person you struggle and often need a SME after just 1st meeting. So I see the channel very quickly leaning on NetApp SMEs who .... no longer exist. You cannot squeeze the complexity of NetApp products in with non-NetApp and expect to get sold.
So you have:
already annoyed sales staff due to commission cap
partners who see you as too complex already in a crowded market
What could possibly go wrong!
wow. So pushing everything to channel to include the Sale, Delivery, and Support, is a good idea? In a market where customers, especially enterprise, want to be closer to the vendor to hold them accountable. In Channel where they are pushing a number of solutions, NOT just NetApp, which means they have no loyalty or concern for the customer experience and will throw NetApp under the bus. Genius move. Screw the companies like AWS, MS Azure, Dell, and other major vendors who are trying to control their customer experience end to end. What do those losers know. This is all BS marketing talk. NetApp is trying to get smaller operational costs to either pop the stock one last time before the CEO leaves, or in the hopes of acquisition.
So that's delivery. What about sales? The hundreds of people in sales who were knee capped on commission were given retention benefits instead so there seems no intention to impact sales.
Major Stock to George and Henri, while everyone else gets let go our bent over. Did they get about 20M worth of stock between them recently?
When one door closes, another one opens. Leaving NetApp isn't a bad thing. Should have done it long before now.
Times are changing, that’s for sure. I wonder when Kurious George will depart?
And this wave of transformation is so vast the transformation leader who is also the CEO chief of staff was announced to be leaving today. Yes Sheila Rohra is going abs she has followed George everywhere. Go figure!!!
Makes sense to me. Thank you for the post.