NEW YORK (
TheStreet) -- It's hard to find a good name in tech these days.
But despite much doom and gloom from chip stocks, suffering PC-dependant companies and sour results from enterprise security names, the storage wars are still booming. With
(NTAP - Get Report) recent rise against market leader
(EMC), it's no longer clear the latter still deserves that title.
Companies are always going to struggle for the services NetApp provides. Although this company often gets overlooked at times when compared to EMC, NetApp has an excellent strategy and a design that appeals to customers. CIOs have shown no interest in keeping up with their own data storage and this is good news for NetApp.
But it might even be better news for
(ORCL - Get Report) or
(CSCO - Get Report).
These two tech powers have been battling it out for years to dominate the enterprise sector while creating a one-stop-shop through strategic acquisitions.
for $2.1 billion is a perfect example. Although Oracle has competed with Cisco in various cloud areas, Acme Packet solidified this rivalry.
Meanwhile, Cisco has been shoring up its own advantage. The company's recent acquisitions include paying $141 million in cash for Cariden and another $1.2 billion for Meraki. But Cisco didn't stop there. Most recently, Cisco scooped-up Intucell and BroadHop, two names that focuses on efficient data delivery, a known specialty of Acme Packet.
What's more, with the cloud market expected to grow to $177 billion over the next three years, it would be foolish for Cisco not to project where this volume of data will be stored.
But has NetApp gotten too expensive? Since reaching a recent low of $26, shares are up 27%. This would present tremendous value since the stock is still down almost 30% from a high of $46.80.
Although competitive threats continue, NetApp is proving it can outperform
and is doing better than holding its own against EMC. For that matter, the two giants have traded neck and neck over the past couple of years. But NetApp is poised to gain market share, especially since
have fallen off significantly. NetApp's most recent quarter was the perfect example.
Check Out Our Best Services for Investors
Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts