IBM to stop reselling storage from NetApp

IBM will stop buying and reselling storage technology from NetApp Inc as part of a plan to move customers to its own products.

IBM plans to formally withdraw from selling NetApp’s new N series systems on Tuesday and shut down development on the product line, according to an internal memo reviewed by Bloomberg. Instead, the company will encourage clients to buy IBM-made offerings.

IBM, seeking to reinvigorate slumping hardware sales, has shifted its focus to newer technologies and product upgrades. The move is poised to be a setback for NetApp, which gets about 2% of its revenue from IBM, according to data compiled by Bloomberg. While NetApp has said that its IBM relationship has presented challenges, it hasn’t disclosed the reselling shutdown.