NetApp, Inc. (NTAP): Business Model Canvas [Dec-2025 Updated]

You're digging into how NetApp, Inc. is actually making money now, especially after that big push into cloud and AI infrastructure-a shift that's clearly showing up in their latest numbers. Honestly, seeing Public Cloud Services Revenue jump 43% to $665 million in Fiscal Year 2025, alongside a solid non-GAAP operating margin of 28.3%, tells a seasoned analyst like me that the ONTAP software story is finally paying off across hybrid environments. If you want to see the whole strategic blueprint-from their key partnerships with hyperscalers to how they are monetizing that $4.1 billion all-flash array run rate-the full Business Model Canvas breakdown is right here for you to dissect.

NetApp, Inc. (NTAP) - Canvas Business Model: Key Partnerships

Hyperscalers: AWS, Microsoft Azure, and Google Cloud for co-engineered cloud services

NetApp reported total net revenues of $6.57 B in fiscal year 2025, with the Public Cloud Segment contributing $665.00 M, representing about 10.12% of total revenue. First-party and marketplace Public Cloud services revenue reached a record $416 million in fiscal year 2025, a 43% year-over-year increase.

• Microsoft Azure: NetApp is the only storage company natively embedded in Microsoft Azure as a first-party service. NetApp won the 2025 Americas Partner of the Year for SDC Canada Award from Microsoft.
• Google Cloud: NetApp received the 2025 Google Cloud Infrastructure Modernization Partner of the Year for Storage award. NetApp technology is deployed in every Google data center globally.
• AWS: NetApp signed a Strategic Collaboration Agreement to accelerate generative AI efforts and simplify transactions for joint customers.

NVIDIA for AI infrastructure integration, including DGX SuperPOD certification

NetApp and NVIDIA jointly serve hundreds of customers for AI model training and inferencing.

Global Channel Partners and Distributors like World Wide Technology and TD SYNNEX

The channel ecosystem is recognized for driving intelligent data infrastructure adoption.

• World Wide Technology won the North America Partner of the Year award in 2025.
• TD SYNNEX was recognized as Distributor of the Year in 2025. TD SYNNEX was also appointed distributor for NetApp Keystone in the U.K. and Ireland in Q4 FY2025.

Technology alliances for AI/ML and data lakes (e.g., Domino, Dremio, Intel)

Strategic technology alliances focus on accelerating AI/ML workloads and modernizing data lakes.

Strategic customer partnerships like the NFL for intelligent data infrastructure

NetApp was named the Official Intelligent Data Infrastructure partner of the National Football League (NFL) in April 2025. The NFL has more than 218 million fans in the United States.

• NetApp will activate across the entire slate of 2025 International Games.
• NetApp will be the presenting sponsor of the 2025 NFL London Games and the first-ever regular season NFL game in Madrid.

NetApp, Inc. (NTAP) - Canvas Business Model: Key Activities

You're looking at the core engine driving NetApp, Inc.'s performance as of late 2025. These are the actions they must execute flawlessly to keep that hybrid cloud and AI data infrastructure strategy moving forward. Honestly, the numbers show where the focus is paying off.

Research and Development (R&D) for the ONTAP operating system and new platforms like AFX

The R&D activity is heavily weighted toward evolving the core ONTAP operating system and launching next-generation hardware designed specifically for AI workloads. This is where you see the investment translate into market differentiation, especially with the recent unveiling of the AFX architecture.

• Developing the disaggregated NetApp AFX storage system, which decouples performance and capacity, built around the AFX 1K storage controller and optional DX50 data compute nodes.
• Ensuring ONTAP, the industry-leading storage operating system, runs on the new AFX, which is designed for linear performance scaling up to 128 nodes and exabyte-scale capacity.
• The R&D output is reflected in the overall company performance, with FY2025 Net Revenues reaching $6.57 billion, a 5% year-over-year increase, showing the market is adopting these innovations.

Developing and managing first-party cloud storage services with hyperscalers

This is a major growth driver, showing a clear shift toward consumption-based models integrated directly into public clouds. The growth rate here is significantly outpacing the overall business.

Here's the quick math on the cloud segment's success in Fiscal Year 2025:

What this estimate hides is the strategic importance of these partnerships with Amazon Web Services, Microsoft Azure, and Google Cloud, which are essential for delivering data services where the customer's AI workloads reside.

Sales and marketing focused on hybrid cloud and AI-driven data solutions

The sales and marketing effort is clearly pivoting to emphasize the unified data estate for AI. They are pushing the message that their platform is the trusted choice for on-premises enterprise storage supporting AI.

• Driving sales of all-flash arrays, which achieved an annualized net revenue run rate (ARR) of $4.1 billion by the end of FY2025, representing a 14% year-over-year increase.
• Marketing the NetApp AI Data Engine, which integrates with the NVIDIA AI Data Platform reference design to simplify the entire AI data pipeline.
• The Hybrid Cloud segment remains the largest revenue contributor, posting $5.91 billion in FY2025 revenue.

Providing professional services and technical support to enterprise customers

This activity is crucial for maintaining the installed base and ensuring high customer satisfaction, which is validated by external recognition.

• Supporting the growing installed base, which includes approximately 22,000 customers for the AFX offering alone, and managing the subscription-based Keystone STaaS solution.
• Delivering support that contributes to NetApp being named a Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Primary Storage Platforms, with 98% of verified users saying they would recommend the company.

Innovating cyber resilience features like Autonomous Ransomware Detection

Cyber resilience is a core, demonstrable activity, evidenced by industry validation and specific performance metrics for their AI-driven protection features on ONTAP.

The effectiveness of the ONTAP Autonomous Ransomware Protection with Artificial Intelligence (ARP/AI) was independently tested:

• Demonstrated a 99 percent detection rate for advanced full-file encryption ransomware attacks during SE Labs testing.
• Achieved zero false positives during the same testing, which is key for reducing alert fatigue in enterprise environments.
• This innovation helped NetApp win the 2025 SE Labs Award for Enterprise Data Protection.

The company is also leveraging immutable NetApp Snapshot technology and the SnapLock logical air gap solution for remediation capabilities.

NetApp, Inc. (NTAP) - Canvas Business Model: Key Resources

You're looking at the core assets NetApp, Inc. relies on to drive its intelligent data infrastructure business as of late 2025. These aren't just abstract concepts; they are concrete, measurable components that underpin their financial performance.

Proprietary ONTAP data management software and its intellectual property.

The foundation here is the ONTAP operating system, which is heavily protected. NetApp, Inc. maintains a portfolio of owned patents, accessible via a specific public document, which secures the core technology behind their data management capabilities. This IP is critical for maintaining differentiation in the hybrid cloud space.

• Intellectual Property: A current list of NetApp owned patents is maintained and publicly referenced as of 2025.
• Software Protection: The company lists NETAPP, the NETAPP logo, and other marks as trademarks, with legal notices detailing copyright and open-source components for software like ONTAP Select 9.18.1.

Deep engineering integration with the three major public cloud providers.

NetApp, Inc.'s engineering muscle shows up in deep, certified integrations across the major hyperscalers. This isn't just a partnership; it's embedded service delivery. For instance, their Google Cloud NetApp Volumes offering achieved general availability across all 40 Google Cloud regions at the Flex service level. Also, in Q4 of fiscal year 2025, their high-performance ONTAP all-flash storage gained certification for key NVIDIA AI platforms, including DGX SuperPOD.

Here's a quick look at some of the specific cloud integration milestones reported around the end of fiscal year 2025:

All-flash array portfolio, which hit a $4.1 billion annualized net revenue run rate in FY2025.

This is a major financial metric showing the success of their hardware refresh strategy. The all-flash array annualized net revenue run rate (ARR) reached a record $4.1 billion by the end of fiscal year 2025 (Q4 FY2025). That represents a 14% year-over-year increase, showing strong market share gains in that segment. To put that in perspective, in the third quarter of fiscal year 2025, the ARR was reported at $3.8 billion.

The growth in this area is significant:

• Record FY2025 All-Flash Array ARR: $4.1 billion.
• Year-over-Year Growth (Q4 FY2025): 14% increase.
• Contribution: All-flash made up approximately two-thirds of the Hybrid Cloud segment revenue in Q4.
• Installed Base: 44% of systems under active support contracts are all-flash as of Q4 FY2025.

Global network of channel partners and a skilled direct sales force.

The reach of NetApp, Inc. depends heavily on its go-to-market engine. While specific current headcount for the direct sales force isn't readily available, the company emphasizes its channel ecosystem. The success of their Public Cloud segment is tied to this, with first-party and marketplace cloud storage services revenue hitting $416 million for the full fiscal year 2025, a 43% year-over-year jump. This indicates effective monetization through their expanded service delivery channels.

The NetApp Console (formerly BlueXP) unified control plane for hybrid cloud.

The unified control plane, now known as NetApp Console, is a key resource for managing the hybrid cloud estate. As of late 2025, this platform is being actively enhanced to support emerging workloads. For example, an enhancement to the BlueXP workload factory for GenAI was announced, enabling multimodal data analysis from images in PDF and Word documents. This shows the platform is evolving beyond basic infrastructure management into higher-value data services.

Finance: draft 13-week cash view by Friday.

NetApp, Inc. (NTAP) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose NetApp, Inc. now, late in 2025, as the company pivots hard into AI infrastructure. The numbers from Fiscal Year 2025 show this strategy is gaining traction.

Unified data management across on-premises and multicloud environments.

NetApp continues to emphasize its silo-free infrastructure, which is key for customers managing data everywhere. The Public Cloud services segment saw significant growth, with first-party and marketplace revenue reaching a record $416 million in Fiscal Year 2025, marking a 43% year-over-year increase. This growth supports the value proposition of seamless data mobility and management across environments. Furthermore, 98% of verified users recommend NetApp for its intelligent, secure, and scalable data infrastructure, according to the 2025 Gartner Peer Insights Customers' Choice recognition.

Intelligent data foundation for AI/ML workloads via the AI Data Engine (AIDE).

The launch of the AI Data Engine (AIDE) at INSIGHT 2025 signals a major push here, extending the ONTAP operating system for AI pipelines. This engine is built on NVIDIA Corp.'s AI Data Platform reference design. Momentum is clear: NetApp closed approximately 150 AI infrastructure and data lake modernization deals in the fourth quarter of FY2025 alone. The goal is to collapse data preparation and management steps, moving enterprises from fragmented AI tools to a unified foundation.

Industry-leading cyber resilience with a Ransomware Recovery Guarantee.

Cyber resilience is a non-negotiable value point, backed by a formal guarantee. The NetApp Ransomware Recovery Guarantee leverages ONTAP's SnapLock Compliance feature to provide tamper-proof snapshots. If data protected by SnapLock Compliance volumes is not recoverable following an attack, service credits are issued, capped at 10% of the Committed Contract Value (CCV) on a per-subscription basis. The underlying ONTAP Autonomous Ransomware Protection with Artificial Intelligence (ARP/AI) demonstrated 99% detection of tested, full-file encryption ransomware attacks with zero false positives in external validation.

Operational simplicity and cost efficiency through a single ONTAP platform everywhere.

The core ONTAP platform continues to deliver efficiency and scale. For FY2025, NetApp achieved a record GAAP gross profit of $4.61 billion on $6.57 billion in net revenues, resulting in a GAAP gross margin of 70.19%. Operational discipline is reflected in the record non-GAAP operating margin of 28% for the fiscal year. The platform's scalability is evident, with the next ONTAP release (9.18.1, planned for Q4 2025) supporting up to 256 SVMs per cluster on ASA systems.

High-performance, scalable storage for mission-critical and AI workloads with AFX.

The new NetApp AFX AI Portfolio is the dedicated hardware for these high-end needs, introducing a disaggregated architecture. The all-flash array annualized net revenue run rate hit a record $4.1 billion in FY2025, growing 14% year-over-year. The AFX system is architected for massive scale, with performance claims designed to feed GPU clusters.

Here's a quick look at the stated performance scale for the AFX building blocks:

The AFX 1K controller runs an ONTAP instance, ensuring that even this high-performance stack benefits from the established management layer.

NetApp, Inc. (NTAP) - Canvas Business Model: Customer Relationships

You're looking at how NetApp, Inc. manages its connections with customers as of late 2025. It's a mix of high-touch enterprise support and scalable, self-service cloud adoption. The company clearly segments its relationship approach based on the customer's consumption model.

Dedicated account management and enterprise-level professional services remain central for the core on-premises and hybrid cloud business. This high-touch service is supported by ongoing innovation in security and data management. For instance, NetApp announced new data security capabilities, including post-quantum cryptography and professional security services, to help customers strengthen their cyber resilience at the storage layer during fiscal year 2025. This level of support is crucial for maintaining the trust required for large, long-term infrastructure deals.

The relationships are definitely long-term, trust-based relationships with large, global enterprise customers. This is validated by the sheer scale of their operations and the recognition they receive. The company's total billings for fiscal year 2025 hit a record of $6.78 billion, up 8% year-over-year. This indicates deep, ongoing commitment from their installed base.

For the newer consumption methods, NetApp is driving self-service and marketplace-driven adoption for cloud-native services. This is where the growth is accelerating. Record first-party and marketplace Public Cloud services revenue reached $416 million in fiscal year 2025, marking a significant 43% year-over-year increase. This growth suggests a successful shift toward lower-friction, digital-first interactions for cloud workloads.

The transition to consumption-based IT is formalized through the transitioning to a subscription model via NetApp Keystone (Storage-as-a-Service). Keystone is designed to offer infrastructure intelligence within a single subscription, incorporating NetApp Cloud Insights for comprehensive monitoring. A key indicator of future subscription momentum is the Unbilled Remaining Performance Obligations, which stood at approximately $430 million at the end of Q4 fiscal year 2025, showing a 23% quarter-over-quarter increase. This metric is a direct signal of contracted, recurring revenue growth.

Customer sentiment reflects this dual strategy's success, evidenced by high customer satisfaction, recognized as a 2025 Gartner Customers' Choice. NetApp was named a Customers' Choice in the 2025 Gartner Peer Insights Voice of the Customer for Primary Storage Platforms. This recognition was based on reviews from 126 verified end users. Furthermore, NetApp achieved a 98% recommendation rate from verified users as of December 31, 2024. More recently, NetApp received 5-star ratings from 81% of customers when evaluating overall experience, product capabilities, and service & support relative to the market.

Here's a quick look at the key customer-related metrics from the fiscal year:

The company also recognized partners driving this growth, naming a NetApp Keystone Partner of the Year in FY'25, showing that channel relationships are deeply integrated into the subscription strategy.

Finance: draft FY2026 Keystone revenue projection based on Q4 FY2025 Unbilled RPO growth by next Tuesday.

NetApp, Inc. (NTAP) - Canvas Business Model: Channels

You're looking at how NetApp, Inc. gets its products and services into customer hands as of late 2025. The structure is clearly weighted toward partners, but the cloud piece is growing fast.

Indirect Channel Partners/Resellers for the majority of product sales.

The indirect channel remains the backbone for hardware and on-premises software sales, which fall primarily under the Hybrid Cloud segment. While direct sales percentage data for fiscal year 2025 isn't explicitly broken out, historical context shows a heavy reliance on this route. For instance, back in fiscal 2010, indirect channel sales accounted for 71 percent of sales, a proportion the company expected to keep growing. The Partner Sphere Program is designed to accelerate this, focusing on differentiation through validated Solution Competencies and services. A UK commercial growth programme, for example, specifically targets driving velocity in 10,000 whitespace SMB accounts by empowering distribution partners.

The performance of the core business, the Hybrid Cloud segment, generated $5.91 billion in revenue in fiscal year 2025, representing 89.88% of the total $6.57 billion net revenues for that year. The All-Flash Array (AFA) annualized net revenue run rate hit $4.1 billion by the end of fiscal year 2025, showing where the channel focus is driving product adoption.

Hyperscaler Marketplaces (AWS, Azure, Google Cloud) for cloud services.

Cloud services are a distinct and rapidly growing channel, evidenced by the Public Cloud segment revenue reaching $665 million in fiscal year 2025, up from $611 million in fiscal year 2024. The first-party and marketplace Public Cloud services revenue specifically hit $416 million in fiscal year 2025, marking a 43% year-over-year increase. This growth outpaced the overall Public Cloud segment growth, suggesting marketplace adoption is a key driver. For the third quarter of fiscal year 2025, this specific cloud services revenue grew more than 40% year-over-year.

The reliance on these hyperscalers is significant, as NetApp helps businesses improve data storage efficiency for clients like Amazon.com's Amazon Web Services, Alphabet's Google Cloud, and Microsoft's Azure. However, growth in this area saw a sequential slowdown, with Q1 FY2026 Public Cloud revenue rising only 1.3% year-on-year, though first-party and marketplace services claimed a 33% revenue increase in that same quarter.

Direct Sales team for large enterprise and strategic account engagement.

The direct sales team focuses on the largest, most complex engagements, often involving strategic accounts where deep, direct negotiation and relationship management are required. While the exact revenue percentage driven directly is not published for fiscal year 2025, the CEO noted that inconsistent execution on closing deals late in Q3 FY2025 led to slipping several seven and eight-figure deals, prompting tighter controls on closing plans. This suggests the direct team is heavily involved in securing these large, high-value transactions that make up a significant portion of the $6.78 billion in total billings for fiscal year 2025.

NetApp's own website and sales portal for subscription and software services.

NetApp Console (formerly BlueXP) serves as the portal for managing hybrid cloud data services, which ties directly into subscription offerings like NetApp Keystone. Keystone, the Storage-as-a-Service offering, showed strong adoption, growing almost 60% year-over-year in Q3 FY2025. The website, NetApp.com, also acts as a lead-generation channel for partners; in a prior period, over 40,000 customers annually used the site to identify the right partner to solve their needs.

System Integrators and Managed Service Providers (MSPs).

MSPs and System Integrators are crucial components of the Partner Sphere Program, especially as the business shifts to a services-led model. The program offers specific incentives and training paths, like Services Certified tracks, to support partners delivering managed services. The focus on differentiating through services helps these partners accelerate solution deployment and shorten time to positive Return on Investment (ROI) for customers. The Technology Alliance Partner (TAP) program supports joint solution development, which is vital for SIs and MSPs building integrated offerings.

Here is a snapshot of the revenue mix and key metrics related to the Hybrid Cloud and Public Cloud channels for fiscal year 2025:

The geographic distribution of this channel-driven revenue in fiscal year 2025 was:

• Americas: $3.35 billion (50.93%)
• EMEA: $2.20 billion (33.54%)
• Asia Pacific: $1.02 billion (15.54%)

NetApp, Inc. (NTAP) - Canvas Business Model: Customer Segments

You're looking at where NetApp, Inc. is focusing its sales and development efforts as of late 2025. The customer base is clearly segmented by their infrastructure strategy, with the vast majority still rooted in on-premises or hybrid environments, though the cloud piece is growing fast.

The company's Fiscal Year 2025 (FY2025) total net revenues hit an all-time high of $6.57 billion. This revenue is split between two primary reporting segments, which directly map to how their customers consume their data infrastructure.

Honestly, the numbers show that the Large Global Enterprises and Fortune 500 companies form the bedrock of NetApp, Inc.'s business, falling squarely into the Hybrid Cloud segment. These are the customers who need the performance of their all-flash arrays, which reached an annualized net revenue run rate of $4.1 billion in the fourth quarter of FY2025, up 14% year-over-year.

For those organizations undergoing hybrid and multicloud transformation, NetApp, Inc. is positioning its entire intelligent data infrastructure as the bridge. The strategy is to unify data across on-premises and all major public clouds. This focus is clearly paying off in the Public Cloud segment, where first-party and marketplace storage services revenue grew 43% year-over-year in FY2025, reaching $416 million.

When we talk about customers with high-performance AI/ML and data lake workloads, you see the newest product focus. The introduction of the NetApp AFX disaggregated flash system and the NetApp AI Data Engine (AIDE) is a direct play here. These systems are built for scalable performance, with AFX designed for linear performance scaling up to 128 nodes, targeting the data-intensive needs of enterprise AI deployment.

For mid-sized businesses utilizing cloud-native storage services, the growth is reflected in the Public Cloud segment, which is seeing rapid adoption of services like Azure NetApp Files and Google Cloud NetApp Volumes. These services offer a consistent ONTAP experience with native scalability, which is key for organizations that want cloud agility without a full forklift upgrade of their data management philosophy.

Finally, let's look at the US Public Sector and government agencies. While sovereign cloud support is a stated feature addressing regulatory compliance needs for this segment, the near-term reality shows some headwinds. In the first quarter of fiscal year 2026 (the quarter ending July 25, 2025), CEO George Kurian noted year-over-year declines in U.S. Public Sector revenue as agencies awaited budget deployment.

To give you a sense of overall customer sentiment across these groups, NetApp, Inc. received 5-star ratings from 81% of customers when evaluating overall experience, product capabilities, and service & support relative to the market, based on verified input for the 2025 Gartner Peer Insights Voice of the Customer report.

• Americas region accounted for the largest geographic share of FY2025 revenue at $3.35 billion (50.9%).
• EMEA followed with revenue of $2.20 billion (33.5%).
• Asia Pacific contributed $1.02 billion (15.5%) of the total FY2025 revenue.
• The company exited FY2025 with $4.54 billion in deferred revenue, up 7% year-over-year.

Finance: draft the Q2 FY2026 revenue forecast variance analysis against the Q1 FY2026 public sector performance by Tuesday.

NetApp, Inc. (NTAP) - Canvas Business Model: Cost Structure

You're looking at the cost side of NetApp, Inc.'s business as of late 2025, right after they posted record fiscal year results. Honestly, the story here is about disciplined spending driving leverage, especially as they push hard into software and AI.

Significant R&D investment in software, cloud services, and AI innovation.

NetApp, Inc. is clearly putting serious capital behind future growth areas. The investment in Research & Development (R&D) for fiscal year 2025 was substantial, showing a commitment to staying ahead in the intelligent data infrastructure space, particularly for AI workloads. This spending fuels the software-defined aspects of their value proposition.

• R&D investment for fiscal year 2025 was approximately $1.01 billion.
• This R&D spend represented about 15.4% of the total fiscal year 2025 revenue.

Cost of Goods Sold (COGS) for hardware components and manufacturing.

The Cost of Goods Sold (COGS) relates directly to the hardware components and manufacturing for their storage systems, though the company is increasingly focused on the high-margin software and services components. We can back into the GAAP COGS using the reported revenue and gross profit figures for the full fiscal year 2025.

The gross margin on the recurring support business remains a high-quality cost anchor, hitting 92.3% in Q4 FY2025.

Sales and Marketing expenses, including channel incentives and commissions.

Sales and Marketing (S&M) is a major operating expense, necessary to drive the 5% revenue growth seen in FY2025. While full-year figures are consolidated, looking at a quarterly snapshot gives you a sense of the scale. Remember, these figures often exclude stock-based compensation when looking at non-GAAP measures, which management prefers for operational review.

Here's a look at the third quarter of fiscal year 2025 (Q3 FY25) expenses to illustrate the run rate:

The total operating expenses for the fourth quarter of fiscal year 2025 were $707 million, which was actually down 2% year-over-year.

Operating expenses were flat against 5% revenue growth in FY2025.

This is the key to their profitability story for the year. NetApp, Inc. achieved fiscal year 2025 revenue growth of 5% (reaching $6.57 billion) while keeping total operating expenses essentially flat. This operational leverage is what you want to see when a company is investing but controlling the cost base.

General and administrative costs to support a non-GAAP operating margin of 28.3% in FY2025.

Controlling G&A, alongside the flat operating expenses mentioned above, directly contributed to the strong profitability metrics. The disciplined approach allowed the company to report a record non-GAAP operating margin for the full fiscal year 2025.

• Fiscal Year 2025 Non-GAAP Operating Margin: 28.3%.
• Fiscal Year 2025 GAAP Operating Profit: $1.34 billion.
• Fiscal Year 2025 Non-GAAP Operating Profit: $1.86 billion.

Finance: draft 13-week cash view by Friday.

NetApp, Inc. (NTAP) - Canvas Business Model: Revenue Streams

You're looking at the money NetApp, Inc. pulls in, which is clearly shifting toward recurring and cloud-based models, even though the core hardware business still drives the bulk of the top line. For fiscal year 2025, total net revenues hit $6.57 billion.

The revenue streams break down across their two main reporting segments, which gives you a clear picture of where the dollars are landing right now.

Product Revenue from the sale of all-flash and hybrid storage systems is embedded within the Hybrid Cloud Segment revenue of $5.91 billion. A key indicator of the high-value product momentum is the All-flash array annualized net revenue run rate, which reached $4.1 billion by the end of fiscal year 2025.

Public Cloud Services Revenue is a definite growth engine. The total Public Cloud Segment revenue for fiscal year 2025 was $665 million. The prompt highlights a specific growth driver here: first-party and marketplace Public Cloud services revenue specifically grew 43% year-over-year, reaching $416 million in fiscal year 2025.

Software Maintenance and Support Services is definitely the stable, high-margin stream you mentioned. For the fourth quarter of fiscal year 2025, Support revenue was $625 million, which was flat year-over-year. That stream maintains a very high gross margin, reported at 92.3% for the recurring support business in Q4 FY2025.

Subscription revenue from NetApp Keystone, the Storage-as-a-Service offering, is showing strong leading indicators. Professional Services revenue, which is mainly driven by Keystone, grew 13% year-over-year in Q4 FY2025, hitting $98 million. In Q3 FY2025, Professional Services revenue was $88 million, up 14% year-over-year. Furthermore, Unbilled Remaining Performance Obligations (RPO), a key indicator for future Keystone revenue, stood at approximately $430 million at the end of Q4 FY2025, marking a 23% increase quarter-over-quarter.

Revenue from professional services and consulting engagements, outside of the Keystone-driven portion, is part of that Professional Services line item. You can see the growth trend:

• Professional Services Revenue (Q4 FY2025): $98 million
• Professional Services Revenue YoY Growth (Q4 FY2025): 13%
• Professional Services Revenue YoY Growth (Q3 FY2025): 14%

Finance: draft the Q1 FY26 revenue recognition assumptions by next Tuesday.