Will AI Keep Pure “growing like a bat out of hell”?
May31

Will AI Keep Pure “growing like a bat out of hell”?

Having accelerated from start-up to top-five vendor in the red-hot flash array market, Pure Storage is looking for new heights to scale. While it still has plenty of opportunity remaining in the storage segment, it is trying to broaden its horizons with a number of new initiatives, including a data-centric architecture, storage as a service and one of the latest buzzword-bingo catchphrases, artificial intelligence (AI) and machine learning (ML). “We were ahead of the market in all-flash,” said Pure Storage CEO Charlie Giancarlo in the earnings call earlier this month. “We were ahead of the market with NVMe. And we’re ahead of the market with AI.” At last week’s PURE//ACCELERATE 2018, its third annual customer/partner event, the company continued its AI push, which first surfaced with the NVIDIA partnership in March. It also made a number of other announcements intended to broaden its reach beyond just faster, smaller, less-complex and more-energy-efficient storage, which has fuelled its meteoric rise, including 40% year-over-year revenue growth last quarter.. “We’re guiding generally to 30+% year-on-year. We aspire to grow just as fast as we possibly can. Part of that is the market, part of that is one’s ability as a public company to scale without wanting to sacrifice quality,” said Giancarlo. “Last year was a great milestone for the company. We also have $1 billion in the bank. We are cash flow positive and are growing like a bat out of hell,” he added. “We’re not just enterprise storage. We’re in a very great place.” Pure faces stiff competition in its core business, the c (7%). However, it’s even further behind in the overall enterprise storage market, which rang up sales of $13.6 billion in Q4, compared to AFA’s $1.9 billion. Although it is looking at a total addressable market of $35 billion, the lights are much brighter in the AI segment, which is expected to generate $1.2 trillion in economic value this year, up 70% from 2017, and projected to add just under $4 trillion by 2022. “The interest in AI by corporations is just off the charts,” said Giancarlo in a recent interview. “At Pure, we are able to…feed GPUs, high speed applications, and AI environments — at the speed they want that data to provide the intelligence companies want to make their businesses better.” He said since AI is all about crunching huge amounts of data, older, tiered storage systems that rank data by age aren’t nimble enough to grant researchers quick access to even the oldest data sets. “These days, people want access to data, whether it was last week or last year or last decade,” Giancarlo said. Pure...

Read More

Video: What Drives IT Complexity

ESG surveyed 651 global technology decision makers in our annual 2018 IT Spending Intentions Survey. In this video, I highlight some of the results most relevant to networking and cloud platforms. As part of the research, we asked respondents to identify the factors driving IT complexity. Three responses were accepted, and the top responses were: To read the complete article, CLICK...

Read More

…On-premises Infrastructure Spending Trends…

ESG conducted research on the spending intentions of 651 IT decision makers to determine how 2018 may differ from previous years. We found out that the majority of organizations were largely going to keep their infrastructure spend flat or even reduce the amount they spend on infrastructure. For many organizations this can be attributed to two initiatives – Hyperconverged and Cloud.As more organizations drive more applications to hyperconverged environments and cloud-based platforms, less on-premises infrastructure will be required. In fact, when asked where organizations felt they could streamline infrastructure and reduce costs, server, storage and networking topped the list. The video below also identifies the direct correlation of increased cloud usage to reduced infrastructure spending. Watch the video for more details. To read the complete article, CLICK...

Read More

The New IT Normal and AWS

At the third annual Amazon Web Services user conference (AWS re:Invent 2014), SVP Andy Jassy stated that “cloud has become the new normal”. AWS claims more than 1 million active customers and the fastest revenue growth rate (>40%) of any multi-billion dollar enterprise IT vendor. As the trailblazer and leader of IaaS, AWS cannot be ignored by IT. There are only two types of companies: those officially using AWS and those whose users are going around IT to consume AWS (see “Stealth IT”). CIOs must either be using AWS solutions or benchmarking themselves against what can be done with AWS. The ascendency of AWS has been compared to Microsoft and VMware. Like those previous cases, it will take time before we know how large they will become and there are growth headwinds when an IT supplier becomes too powerful in a partner ecosystem or takes a large amount of revenue from customers. To read the complete article, CLICK...

Read More

Active Directory: Microsoft Azure’s Secret Weapon

In “Public Cloud Computing—Economics and Throats to Choke,” we pointed out that among the big four cloud vendors (Amazon, Google, Microsoft, and VMware), only one vendor offers both a complete on-premises offering and a public cloud offering and, at the same time, has complete technical and economic control of its software stack. That vendor would be Microsoft. In the post, we pointed out that Microsoft was in the unique position of being able to leverage its massive on-premises installed base to feed its cloud business. To read the complete article, CLICK...

Read More