Partners quiz NetApp and Cisco over potential union

Cisco manager sets out pros and cons of a potential deal in response to questioning from resellers at NetApp's Venice summit

One of Cisco's EMEA executives chewed over the hypothetical merits and pitfalls of acquiring storage bosom buddy NetApp at the latter's partner summit this week.

During a media and partner panel at NetApp's Partner and Pathways Summit in Venice, the 200 attendees were invited to submit questions to the panel of representatives from sponsors Cisco, Citrix, Fujitsu, Microsoft, SAP and VMware.

With NetApp being pinpointed as a possible acquisition target for cash-rich Cisco in recent months – the duo deepened their alliance around their joint FlexPod technology in January – one partner asked whether a deal is on the cards.

In response, Cisco business development manager Paul Carr said that, while he could see the logic of a merger, the duo's existing alliance is working so well that little may be gained from making the union more formal.

He stressed his views were personal and Cisco was unavailable to offer a corporate view when contacted.

"Personally, [I think] acquiring NetApp would be a good move for Cisco, but then again, buying other storage could potentially be seen as a good move for Cisco," said Carr. "It would be a negative move because acquiring NetApp would cause issues with our relationship with the other vendors we have at the moment.

"We resolve [support issues] that with single support, so from that perspective, the relationship we have with NetApp the way it is today is phenomenal. I do not see Cisco acquiring NetApp because the relationship we have is one of the strongest.

"I think we share a common strategy and common approach to the industry: the channel, our go-to-market [strategy], [our] partner-led ecosystem. Of European partners here, I'm sure everyone is a Cisco partner in some way.

"I think things the way they are are working very, very well so why change it? There is always speculation, though, as we have $63bn (£41bn) of cash."

NetApp has been touted as an acquisition target for numerous other tech giants including IBM and Oracle in recent years, and representatives for the company at the sponsored panel did not comment further on the matter.