Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
OMB APPROVAL
OMB Number: 3235-0287
Expires: January 31, 2005
Estimated average burden hours per response... 0.5

(Print or Type Responses)
1. Name and Address of Reporting Person *
LAU JAMES K
   2. Issuer Name and Ticker or Trading Symbol
NETWORK APPLIANCE INC [NTAP] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Executive Vice President,
(Last)
(First)
(Middle)
495 EAST JAVA DRIVE		 3. Date of Earliest Transaction (Month/Day/Year)
01/08/2007
(Street)

SUNNYVALE, CA 94089		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock 01/08/2007   M(1)   3,524 A $ 9.99 3,787,457 I by Trust3 (2)
Common Stock 01/08/2007   M(1)   2,648 A $ 14.167 3,790,105 I by Trust3 (2)
Common Stock 01/08/2007   M(1)   2,272 A $ 15.711 3,792,377 I by Trust3 (2)
Common Stock 01/08/2007   M(1)   1,556 A $ 17.146 3,793,933 I by Trust3 (2)
Common Stock 01/08/2007   M(1)   40,000 A $ 15.32 3,833,933 I by Trust3 (2)
Common Stock 01/08/2007   S(1)   50,000 D $ 39.6518 (3) 3,783,933 I by Trust3 (2)
Common Stock               4,787 D  
Common Stock               68,600 I by Trust1 (4)
Common Stock               68,600 I by Trust2 (5)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 1474 (9-02)

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Non-Qualified Stock Option (right to buy) $ 9.99 01/08/2007   M(1)     3,524   (6) 10/31/2012 Common Stock 3,524 $ 0 0 D  
Non-Qualified Stock Option (right to buy) $ 14.167 01/08/2007   M(1)     2,648   (7) 01/02/2010 Common Stock 2,648 $ 0 0 D  
Non-Qualified Stock Option (right to buy) $ 15.32 01/08/2007   M(1)     40,000   (8) 02/06/2012 Common Stock 40,000 $ 0 150,000 D  
Non-Qualified Stock Option (right to buy) $ 15.711 01/08/2007   M(1)     2,272   (6) 05/08/2013 Common Stock 2,272 $ 0 100,000 D  
Non-Qualified Stock Option (right to buy) $ 17.146 01/08/2007   M(1)     1,556   (9) 01/01/2011 Common Stock 1,556 $ 0 631 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
LAU JAMES K
495 EAST JAVA DRIVE
SUNNYVALE, CA 94089		       Executive Vice President,  

Signatures

 By: Janice Mahoney by Power of Attorney For: James K. Lau   01/10/2007
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) The option exercise and sale reported in this Form 4 were effected pursuant to a Rule 10b5-1 trading plan adopted by the reporting person on September 20, 2006.
(2) Shares held in trust by James K. Lau and Katherine S. Lau, trustees to the KNSK Trust UDT 9/18/00
(3) The sale prices for the reported transaction were in a range of $39.39 to $40.18 per share.
(4) Shares held in trust by Koon H. Lau, trustee to The Jason A. Lau 1998 Trust. Reporting person disclaims beneficial ownership of such shares.
(5) Shares held in trust by Koon H. Lau, trustee to The Jonathan A. Lau 1998 Trust. Reporting person disclaims beneficial ownership of such shares.
(6) Option vests in a series of equal monthly installments over 48 months of service beginning with the one-month annniversary of the grant date.
(7) Option vests with respect to 1/12 of the option shares on January 31, 2000 and the balance in a series of equal month installments over the next 11 months thereafter.
(8) Option vests with respect to 20% of the shares in equal monthly installments over the 12 months of service measured from the first anniversary of the option date; 30% of the shares in equal monthly installments over the following 12 months of service; and 50% of the shares in equal monthly installments over the final 12 months of service.
(9) Option vests with respect to 1/12 of the option shares on 1/31/01 and the balance in a series of equal month installments over the next 11 months thereafter.

Note: File three copies of this Form, one of which must be manually signed. If space is insufficient, see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB number.