NetApp CEO on Why Data Domain is a Good Fit

" Asked because some I'm very excited about talking to my next guest. There happens to be a bidding war shaping up in the technology -- at the center of the battle is something called digital -- for data storage company. Known for -- little duplication -- EMC. Just fired the first shot in the battle over purchasing this company in nearly two billion dollars in cash for data domain. Countering Bible naps one hand feeling low dollar offer for the company. Brings schools so -- look at -- next move in the showdown. -- warm and home then the chairman and CEO of NetApp is kind enough to be here with me in let me move closer to use of it can happen we -- Get very personal advice do you about the deal not just getting are my apologies -- the present unites states as you can see right now. -- believing Air Force One he's on his way. To meet with king adolescents want to bring this back up against -- they get opportunities from this. Yet the first of many meetings. For the president Abdullah. And they'll be all kinds of bilateral meetings throughout the day. From there you have that the two of them. On the tarmac as the -- states hasn't arrived in Riyadh Saudi Arabia are let me turn to Dan Dan thank you so -- when the when the president arrives especially in the at least as you can imagine it it to be. Big conversation. Let's talk a little bit about -- to me and the deal. When he came out with -- last quarter earnings at the same time you announced that you had a billion and half dollars a deal to purchase stated to me. Even if he steps up two billion where you stand."

" We're still very very interest we're assessing our options at the moment. As you said it's the first shot into the world see with the second child looks like. We still believe that -- demand really fits best with that there's less product overlap. We think there's more synergies to be -- we think there's a better fit for our customers and their employees. And so we're very very interest in pursuing. Are. An original proposal and saying how we amend it."

" You came in with with a strong quarter and given a very great -- challenging environments. And at the same time you announced an acquisition went a lot of people thought you the one who's gonna get purchased an an quelling those rumors. You're -- actually wounds based on this deal so. -- their price that you say this is forfeit if he's ultimately -- our people have got 250 million cat about 250 million in sales. What makes this -- so so good for you."

" How long term strategic fit. If you look at data remains product kind of fits very complimentary of their own as always no overlap at all. And it really is a solution for data that Tennessee CEO's they're described as it is that they vegetative state. Witnesses say if you think of you your own personal affairs when you take your files and put him up from the attic right. That would be the coolest -- something elevated remain divisive set the third layer -- can't delete it you know thrown away. Which I have an efficient storage solution so at some point dating it's only gets tired Mueller put an -- that the system like this. That's that's the style of stories that we have not yet addressed ourselves if it's very nicely behind our -- secondary storage for. You know date of the can be read -- archival kind of story. And so when you look at the combination of the two of the technologies are synergistic. The distribution models -- synergistic and in particular if you look at data remains model. Right now only about 20% of their revenues are from outside the US 52% of ours are so it could take their product imported and our channels of distribution Rivero."

" You know what when you look at the U. The I guess Unifirst -- competition right now is particularly the technology she sector was -- Oracle outbid IBM for sun micro. And yet you know -- competition data storage sector you know the likes of IBM and others he did not come out with a good quarter in fact you know they're pretty. Hesitant about the current technology environment and yet it's been one of the biggest leaders since -- let us. I'm sure something that's fundamentally shifting that changing industry."

" Not not fundamentals I think the question storage is a census consumable -- filled up when he got to go buy some more questions Pollack -- hold their breath column coming just give more efficiency -- what they have on when they have start buying and the so pretty much expects the storage spending will be on the front end of the recovery curve. And we're starting bid to see. Interest they issued -- customers from customers in and what's coming next and when they under near the end of this year. So I think there's some anticipation that maybe you know the second half of the year looks better and things like that. But has been a very tough tough market and they actually started last fall right torn out of period where. June why we're now about ten months from women Monday and in it's about time people start -- capacity is the worst behind us. I believe so I think there's there's more confidence about you know going forward and people -- a look at infrastructure investments to reduce cost and things like that suspending -- is starting to open up again."

" You your company for people who don't know this at home is ranked as number. One of the best companies to work for in America by fortune magazine. You worked consistently. Rank among the top fifteen most prestigious list. For the past seven years including multiple other -- that you guys have been on. What if it makes your company's best company work -- I haven't you violate."

" There is a lot of misconceptions about the list and you look at the other news coverage it's all about the -- out of cafeterias say about them while. When you look at why people like that worked at it like what they did like who they do with a lot less likely they were four. And there's a lot of trust between imagine employees are very open communications and it's really more like a team and as a structured organization overall players on the same team everybody feels like they've got a voice. 8000 people around the globe that are really committed to helping customers and the defeating the competition if quite -- a lot of energy of that."

" You're right it's interesting you talked about that a little bit at the end of the quarter where you said you know this team this team hustled in a really challenging environments. You know we're going to be -- corporate philanthropy. Discussion coming up at the CE CP a little bit later today. One of the things that you have done is even Powell word your employees to make the difference offering them things like forty hours to go out there and do community service how important back to the value system of the company."

" It's very important. You know if you think about being their role of a corporation is really to serve its customers and shareholders its employees. -- nonprofits aren't don't make that list right so the question is how does a corporation participate as a citizen of the community. And the answer is through their employees and so we've done and distant to help our employees make contributions to their organizations are interested in. What have you and equipment -- be worth their time so we have a flexible time off for a volunteer time off program. Where she said they could take up to forty hours a year to donate their time to the nonprofit of their choice and it's a huge difference. How far withstand difficult economic climate is just one thing we can do it doesn't consume cash. Almost all our employees are professionals and enough paid by the hour they're they're paid salary. And as professionals they have Tennessee get their job done -- its battlefields are missing any thing. He's basically say look you don't have to work every single day -- your job done in the course of monetary here. And then that you can Spencer and a lot of days just you know with kids at school learn a nonprofit. Interest."

" Well -- home and I'm very excited to this panel you later this morning. Am very excited to hear what that announcement you have next about that -- to -- I think you're staying in the bidding war -- eat you can rest assured us from the case I thought I could. I like that that's a sure I can thank you very much and at my pleasure elections later this."