This post was originally published on this siteRecently I wrote a blog post on how to authenticate and connect to Pure1 via PowerShell. You can find that here: Using ...
Since starting Pure Storage (NYSE:PSTG), we’ve taken a broad view of the market opportunity for Flash. We eschewed the idea that Flash was a niche performance technology, and built a company and a product strategy around delivering flash everywhere to power mainstream computing and tomorrow’s clouds. We built our initial success targeting the core SAN segment of the storage market, but over the past few years we have been investing in a number of expansion opportunities. These expansion opportunities are now shipping and are poised to transform even more of the storage market, and dramatically expand Pure’s market opportunity in 2016, 2017, and beyond. This blog recaps these technology investments (at least the ones we’re ready to talk about!), and hopefully gives a sense for how Pure is keeping-up our aggressive growth trajectory in the overall moderate-growth storage market.
Pure’s 2015 TAM: $24B
As part of our IPO in October 2015, we defined the TAM our solutions served. Using industry-standard IDC data for price bands, we calculated that TAM to be approximately $24B annually:
Our calculus in 2015 was pretty simple:
The rectangles in the diagram above give the relative sizes of each of these price bands, and the circles give a sense for the growth rate for each of these sub-segments.
Pure’s 2016/2017 TAM: $35B
We introduced new products in 2016 and have new initiatives coming in 2017 that we are confident will continue the transformation of storage. These significantly expand our TAM, and help us gain share faster in our existing TAM. Specifically:
These five expansions bring our unique simplicity, efficiency and customer experience to areas of storage that are ripe for disruption. They add a cumulative $11B to our TAM, bringing our total TAM to approximately $35B, and enable us to address this TAM at a faster clip.
Let’s explore these 5 growth areas in a bit more depth:
Together these five TAM expansion opportunities not only expand our TAM to approximately $35B but also enable us to accelerate our execution within this TAM.
Delivering Best-in-Class Growth
Our plan to transform storage is working, as we continue to demonstrate best-in-class growth quarter after quarter. IDC recently released its Q2 2016 enterprise storage market share numbers, and once again Pure Storage delivered best-in-industry growth by a landslide, and actually delivered the highest total revenue dollar growth in the storage industry. Not the flash industry, in the storage industry overall. This growth has enabled us to move into the top 10 vendors in the overall storage industry (while our larger competitors continue to see total market share declines as they re-arrange the deck chairs from disk to flash, but fail to change the trajectory of their overall businesses).
We are more excited than ever to be bringing flash-enabled Smart Storage solutions to all corners of the storage industry, and you can rest assured we won’t quit until every workload in tomorrow’s data center can reap the efficiency, simplicity, and performance benefits of Pure Storage!
Forward Looking Statements. This post contains forward-looking statements regarding industry and technology trends, our strategy, positioning and opportunity, and our products (including FlashArray and FlashBlade), business and operations. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Actual results may differ materially from the results predicted, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted include, among others, those risks and uncertainties included under the caption “Risk Factors” and elsewhere in our filings and reports with the U.S. Securities and Exchange Commission, including, but not limited to, our Quarterly Report on Form 10-Q for the fiscal year ended July 31, 2016, which is available on our investor relations website at investor.purestorage.com and on the SEC website at www.sec.gov. Additional information will also be set forth in our Quarterly Report on Form 10-Q for the quarter ended October 31, 2016. All information provided in this post is as of October 11, 2016, and we undertake no duty to update this information unless required by law.