Formerly known as Network Appliance NetApp is a proprietary data management and computer storage company which was established in 1992 by Malcolm Michael and Lau James? The main competitors of this company at the time of are birth was Apex. The headquarters of the company is located in Sunnyvale in the state of California. In 1994 the company received a capital venture from Sequoia. In 1995 the company had its initial public offering.
In mid 1990s to 2001 the company thrived, it recorded a growth a one billion US annual earning. At the end of the bubble burst, the company’s revenues reduced to eight hundred million US dollars, however since then the company’s revenue has steadily rise.
In this paper we are going to look at the reasons why the policies of NetApp make business sense.
Why their (NetApp) policy makes a business sense
NetApp has a policy referred to as the policy of responsible Disclosure; this policy makes business sense because it is associated with the vulnerability of products. The policy involves the following four elements: specific guidance on corrective action, no additional or early disclosure of information to any body under any conditions (circumstances) no matter how annoyed they are to me, public and simultaneous disclosure of information to all security, customers and partners lastly in the event that the details released would induce risk the disclosure will have to be done only through release at risk and CVSS score. This policy addresses the issues of vulnerability in the most aggressive and fair manner, it also gives priority to the protection of all the data belonging to their customers. An example of how it makes business sense is: if QRST‘s Ethernet switch has been compromised, the criminals can prevent you from accessing your network, however if the systems of NetApp is compromised the possibility of the criminals having access to the more than million credit cards is minimal or almost to zero because of the policy of responsible disclosure that the company has in place. (Katcher J 2006 page 14)
NetApp has a policy of creation of a healthy working environment to all the employees. In this policy the company emphasizes on an open communication in the company in all levels, treating employees with respect, and maintaining the values of the company. In this policy the company also emphasize on its’ commitment of creating a working environment that is healthy for all its workers and making NetApp a great place to work in. the culture of the company is defined by it’s core values of integrity, leadership, trust, simplicity, team work and synod. All these aspirations are at the heart of the policy of this company. The policy enables the company to treat its employees with respect through giving them a comprehensive benefit, resources, tools and packages and the autonomy to do their tasks with success. The policy places a lot of effort in having many channels of communication this makes the communication channel to be so open and no information is kept away from all the employees.
This policy makes business sense because through it the employees get motivated by having a feeling that the organization cares for their welfare. This feeling of being cared for will motivate the employees and they will end up working hard. This will result into products of higher quality from the employees. Having products of good quality will make the company to sell a lot of their products this implies that they will end up making a lot of products. (Harvard Business Review 2008)
The policy of training employees- this is a policy on which the company has undertaken to take its employees for regular training. During training employees get new knowledge on the technological developments that have taken place in the market. The policy of training employees makes a business sense through training its employees that company will realize growth in terms of their profit and the quality of products that they will be manufacturing. Increase in quality of products will increase the number of the customers that the company will be serving, this will result into increase in revenues that the company will; be generating, hence this policy of training employees that the company is undertaking. (Williamson 2005 page 48)
NetApp have environmental policies that are geared towards conserving the environment. The company recently received WRAP award for their outstanding policies of reducing the solid waste locally and reducing the environmental impact on the environment. With the help of its employees, the company diverted over one million eight hundred thousands pounds of material from land fills in 2007. The environmental policy that the company has implemented is a basic and inventive program of waste reduction; the policy has so far succeeded in reducing over eleven percent (11%) waste. The company is committed towards minimizing the environmental impacts of its activities. The environmental policy emphasizes managing waste in a most responsible way. It includes a massive building project that generated over six hundred and fifty thousands pounds of recycled construction materials (debris), Reusable ceramic trays, organic materials, recyclable containers of food, electric vehicles shuttling goods and people and flower beds. The company is a good example for the other companies, given that it is acting locally using the employee’s efforts and the company’s smart policies to recycle waste, reduce waste and to reuse some material. This environmental policy makes a business sense to both the community and the company (NetApp). The company has realized a saving of over forty five thousands US dollars in terms of the money that they would have paid as landfill fees to the local authority. The policy also makes business sense makes it has reduced the amount of pollution coming from the company. The environmental policy of the company has also enabled it to reduce the money spent on raw materials, given that they are recycling raw materials while reducing the amount of waste. (www.solidwaste.com)
Their policy of motivating employees –in this policy the company has come up with different things that makes their employees motivated examples of these issues are : giving the employees incentives like increasing their salaries, giving them paid leaves, and encouraging them to go for further training. The NetApp has a policy of reviewing the salaries of their employees after every one year. During this time employees get an increase according to the way that they performed during the last financial year, this policy makes business sense because whenever employees are motivated they tend to work more efficiently and effectively. In the event that they work harder the quality of the products and the amount of services and products that NetApp are making will tend to increase, hence NetApp will realize a significance increase in their profits. This policy also makes business sense because the employees will most likely be creative and innovative because of the motivation and support that they are getting from the management of NetApp. (Williamson 2005 page 53)
NetApp has a policy of reducing power consumption in data center. The company came up with a team that is responsible with designing electronic devices that will consume little power as compared to their other competitors. This policy of reducing power consumption is mainly geared towards efficient consumption of power. With this policy NetApp succeeded to fine tune its data center cooling system, and power delivery so as to optimize power consumption. The company succeeded to achieve its target of energy efficiency’s recommended by EPA. In this policy the company stated that there was need of coming up with a hot aisle equipment layout, vinyl strip that had a curtains that could contain hot air from mixing. When the management put this in place the company noticed a significance decrease of power consumption in the factories and all of their devices. This policy also ensures that whenever NetApp comes up with a new product, they have to take into consideration the power that the component is going to consume. This policy makes sense in business because all the products that are coming form NetApp are economical in terms of power consumption. By installing machines that are efficient in terms of energy consumption, the company will save power and so all those consumers who buy their products. (NetApp 2007 page 23)
The policy that NetApp has put in place most of them make business sense because they contribute to the generalization of the company’s mission and goals. NetApp has taken most of this polices seriously and they have put the necessary machineries fro their implementation.