I'd wager heavily on AWS (i.e. Amazon) outperforming NetApp over the next decade. Why? Their operation model is far better positioned for profits. Honestly, if

I'd wager heavily on AWS (i.e. Amazon) outperforming NetApp over the next decade. Why? Their operation model is far better positioned for profits. Honestly, if you consider storage vendors a significant growth market you and I have a very different opinion of what's driving profits in technology today. All balance sheets can and are manipulated to differing extent. The reality though is net margin takes better into account than what you were proposing, which is a cherry picked angle to make a point. Growth companies move profits to R&D. NetApp isn't highlighting R&D on earnings calls. Amazon highlights R&D very publicly multiple times per year. Low R&D costs and investment are indicators of a stagnant market. Amazon's hardware model is not the same as NetApp's. You realize Amazon consumes almost 100% of their own hardware offerings for AWS, right? They have a much more palatable JIT model. They can build as they need. NetApp has to house dead weight inventory for potential sales so they can recognize revenue, especially for end of quarter / end of year sales pushes. Amazon doesn't have this problem. Also NetApp has to package their product for customer distribution. You may ignorantly shrug this off but it's an additional cost that adds up quickly. NetApp also has to maintain documentation and support staff for customer facing hardware related issues. Amazon has a much lighter requirement because they have specialists within their DCs. It's not even remotely comparable. Amazon isn't working with "the exact same ODMs". Many ODMs NetApp is forced to work with Amazon doesn't need. Take a look at what Amazon is doing internally and it's clear their stack continues to evolve more towards in house designs and build. NetApp is far more reliant on external support than Amazon is given their positions in the market and have far greater control over the hardware stack from top to bottom. Maybe peruse the career openings at AWS vs NetApp for some insights.