NetApp Applauds EPA Efforts to Address Data Center Energy Efficiency

Sunnyvale, Calif. - August 3, 2007 -- The Environmental Protection Agency (EPA) today publicly released a report to Congress assessing the current trends in energy use and costs of data centers, outlining existing and emerging opportunities for energy efficiency. The report was requested by Congress in legislation passed in December 2006, which was introduced by Representative Anna Eshoo (D-CA) and Representative Mike Rogers (R-MI).

In light of the report's findings, Chris Bennett, vice president, Core Systems, Network Appliance, Inc. (NASDAQ: NTAP), shared his perspective on the report, its impact to customers, and the role of industry in the process moving forward.

"NetApp is encouraged by the EPA recommendations to promote data center efficiency," said Bennett. "The report's findings demonstrate that both government and industry are taking the issue of data center power consumption seriously. One of the recommendations by the EPA is to develop best practices for improving energy efficiency through storage optimization. For our part, NetApp is committed to helping our customers implement real, achievable data management techniques to reduce power, space, and cooling."

Bennett continued, "Based on the EPA's recommendations, we are confident that an industry-government partnership will continue to effectively address this growing issue for our customers' businesses. We look forward to our continued dialogue with policy leaders to advance greater energy efficiency in data centers."

As noted in the EPA report, IT is an increasingly important factor in the growth of businesses, which leads to increased demand for and investment in key business applications and functions. These critical business applications are driving the demand for large amounts of data storage in data centers. In addition to regular business processes, disaster recovery and applications for regulatory demands that require the collection and storage of digital data are motivating the need for more storage.

To solve this thirst for more data, many enterprises simply add more storage equipment, leading to greater power, space, and cooling requirements in the data center. In fact, the EPA report notes that the number of installed enterprise hard disk drive storage devices is expected to nearly quadruple from 2004 to 2010. Simply adding more disks, however, often results in severely underused capacity. In fact, the industry standard for enterprise storage device utilization rates is typically less than 40%.

However, advancements in data storage technology from companies such as NetApp are significantly improving storage utilization and optimization. Similarly to many of its customers, NetApp was facing several challenges in its own data center, including low storage utilization and growing space, cooling, and power constraints.

To address these issues, in 2006 NetApp IT undertook a project to consolidate its storage infrastructure and take advantage of the latest NetApp® technology advances to better utilize its storage capacity. As a result, NetApp reduced its amount of storage equipment and increased its storage utilization from less than 40% to an average of 60%.

As a leading provider of storage and data management solutions, NetApp provided input to the EPA. The report recognized the company's innovative use of distributed generation (DG) and a combined heat and power (CHP) system, stating that innovative uses of power are among the ways that data center operators can reduce energy usage and costs.

According to the EPA, "These DG resources can save significant energy in data centers, particularly when integrated with other energy-efficiency measures. DG resources used in CHP systems that use waste heat to provide cooling can provide the greatest benefits and lowest paybacks throughout the supply chain and are ideally suited to the steady power and cooling loads of data centers."

In addition, NetApp has taken advantage of other energy-efficient data center innovations cited by the EPA, including flywheel UPS and outside air economizers to more efficiently provide power to its data center and decrease the energy needed for cooling. NetApp is also sharing these best practices with customers to replicate in their own data centers to save energy and reduce power.

"We know that energy usage in the data center can have a big impact so we are certainly taking our own power use very seriously," said Bennett. "There are a number of innovative tools that we are implementing and discussing with customers to help them understand how these initiatives can affect their businesses."

"We are also practicing what we preach regarding data management practices to reduce our amount of raw storage and consequently the amount of power, space, and cooling in our IT environment. We are proud to say that through these best practices, we have cut our storage footprint by 75% and eliminated 94 tons of air conditioning, reducing electricity costs by almost $60,000 a year. In essence, by reducing power consumption, we have accomplished the equivalent of taking about 212 cars off the road."

The NetApp technology approach to halting power growth is to provide solutions that reduce raw storage and enable customers to do more with the storage systems already in their IT environments. Today, customers can take advantage of NetApp technology to subtract machines and disks, reduce their overall data center footprint, and maximize storage utilization. This approach not only helps IT organizations achieve greater power efficiency, it also lowers infrastructure complexity and costs while enabling customers to better respond to new business demands.

For more information about the NetApp approach to addressing power consumption, please visit www.netapp.com/us/company/our-story/green/power-conservation.html. In addition, the NetApp whitepaper, "Reducing Data Center Power Consumption through Efficient Storage," which was referenced in the EPA report is available at link above. Further details can also be found via NetApp TechTalk Online Events, http://www.netapp.com/news/techtalk/podcasts-on-demand.html, and a podcast with Chris Bennett who shares key recommendations on how improving storage utilization can help customers address power consumption in the data center.

About Network Appliance
Network Appliance is a leading provider of innovative data management solutions that simplify the complexities of storing, managing, protecting, and retaining enterprise data. Market leaders around the world choose NetApp to help them reduce cost, minimize risk, and adapt to change. For solutions that deliver unmatched simplicity and value, visit us on the Web at www.netapp.com.

Press Contact:
Roger Villareal
Network Appliance, Inc.
408-822-1959
rogerv@netapp.com