UPDATED 08:00 EDT / SEPTEMBER 13 2018

INFRA

NetApp partners with Lenovo on new products and joint venture in China

Data storage company NetApp Inc. is plotting an expansion into China by teaming up with Lenovo Group Holding Ltd.

The companies today announced a new technology partnership and plans to create a joint venture company that will allow NetApp to sell its products and services to Chinese firms.

The international technology partnership will see the companies collaborate on a range of Lenovo-branded storage products that are being launched today. Announced at Lenovo’s Transform 2.0 conference, the products combine NetApp’s all-flash data management software with Lenovo’s ThinkSystem servers.

The first systems include the Lenovo ThinkSystem DE and DM Series servers, which are available starting today. Few details have been released about the capabilities of these new systems just yet, but with NetApp busy transitioning its products in line with industry trends toward chip-based flash storage and software-defined networking, it’s reasonable to assume they will be designed to meet these demands.

“In today’s global economy, customers demand new approaches to IT infrastructures that support their digital transformation; through this partnership,” said NetApp Chief Executive George Kurian. “Lenovo and NetApp will offer a comprehensive portfolio of products, solutions and service that is unrivaled in the market today.”

Probably the bigger news, however, is the announcement of the joint venture between NetApp and Lenovo, which is expected to be up and running by spring 2019 pending local approval. Through the new company, NetApp and Lenovo will be able to sell their collaborative storage products and data management software to Chinese firms. The joint venture is necessary for U.S. tech companies such as NetApp because Chinese laws largely prevent them from doing business in the country alone.

Analyst Patrick Moorhead of Moor Insights & Strategy said the marriage between NetApp and Lenovo is “one of strength, not weakness” since both companies are presently on their “A-game.” He said the partnership was about the two firms joining forces in order to design, manufacture, market, sell and service external enterprise storage, both in China and beyond.

“Lenovo is in the unique position in that it’s the only Chinese-based enterprise infrastructure company that ‘gets’ working with western companies,” Moorhead said. “NetApp brings Lenovo into many new enterprise accounts.”

NetApp’s partnership with Lenovo is the latest in a string of relationships the company has been fostering as it looks to help its customers modernize their data center infrastructure for scenarios such as hybrid clouds.

For example, NetApp recently added its network-attached storage service to Google LLC’s cloud platform. It has also been working closely with companies like SAP SE to provide more advanced storage options for that firm’s vast range of enterprise software products.

Photo of Lenovo CEO Yang Yuanqing: Stu Miniman/SiliconANGLE

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