When I reflect on the past quarter I’m amazed by the sheer speed of change and just how agile businesses and individuals have had to be in order to adapt. The COVID-19 pandemic has not only had a major impact on the way businesses operate but has also changed the way individuals live, work and interact with almost everyone around them. And in this new and uncertain world it is clear that there has never been a greater need for technology and new requirements from it. From technologies that not only keep businesses running but actually enhance organisational performance, to those that enable people to continue to work remotely and also keep in touch with friends and loved ones.
At Pure we are proud of the contribution we have made to keeping organisations operating and very pleased that, despite the challenging environment, we have achieved 12% year on year revenue growth and 37% year-over-year growth in Subscription Services.
These results show the trust customers have placed in our flexible, simple and scalable technology solutions. It is also a testament to the robustness and the resilience of our supply chain, and our customer and technical support functions, to withstand the pressures and challenges that arose in the quarter. In particular, I was enormously proud of our service to our customers, some of whom were on the frontline fighting COVID-19, who depended on us to keep their critical infrastructure operating smoothly.
Adapting to the New Normal
Expectations of what is or will be normal has forever changed. There is an increased customer demand for hands-free management, automation, consolidation and flexible consumption models. Reducing cost and risk has become more important than ever before. Customers need environments that are simple, reliable, and provide maximum optionality and flexibility to adapt to changing times.
We are already industry leaders, and in many cases first to market, with solutions that are tailored to customer requirements. Whether it’s helping with remote installation, configuring a solution in hours rather than days, or providing a full view of critical system information – the need for flexible consumption models has never been greater.
The Change in Buyer Behaviour
Traditional capital expenditure-based storage is not effective in addressing end-user requirements. Why? Storage planning is hard and has an unpredictable growth path. It is very easy to over or under-provision. Further, customers don’t want to go through painful migrations every three to four years. They prefer cloud economics and cloud operations, even on-premises.
Pure as-a-Service was developed in response to an increased aversion to risk amongst buyers for large capital expenditures. The service provides on-premises and cloud storage facilities that deliver effective and dynamic solutions in an unpredictable world. The trend of customers closely evaluating all spending decisions has continued in the current environment. Now, more than ever, organisations are not in a position to buy or lease years of storage in advance or commit to long-term service contracts. They want to be able to start small and grow over time, and subscribe to an SLA instead of a piece of hardware.
Pure as-a-Service blends file, block, and object storage to support the use cases enterprises need right now, while also reducing the risk and improving the economics of storage in the multi-cloud age. Customers leveraging Pure as-a-Service have the flexibility to determine their cash and capital commitments in the short as well as long term, the flexibility to own or to subscribe, and the flexibility to change where they place their data at any time. They have the freedom of a multi-cloud contract for storage and to only pay for what they use, when they use it, regardless of where they place their data.
Most vendors do not provide true storage as a service (STaaS) but rely on leases to deliver limited OPEX payment terms. We believe we have the solutions that are closest to customer expectation around the ideal hybrid and public cloud offering. A key differentiator before Covid-19, this service is now a crucial element for many businesses as risk aversion increases and IT expenditure becomes more conservative.
How We’re Making a Difference to Our Customers
Our solutions are always designed with the customer front of mind. This is in the very fabric of everything we do and why we have attracted a number of world-class organisations from every sector and every corner of the globe. In an impressive international portfolio that already boasts the likes of Mercedes-AMG Petronas Motorsport, Berrios and ServiceNow, we are very pleased to welcome a host of new customers. Some recent highlights from the past quarter include:
- We’re working with Macau University of Science and Technology (MUST) in the build of its AI High Performance Computing Center. Our work with them has significantly improved the speed in which they can conduct data analysis and plays a vital role in supporting the needs of its various AI computing scenarios.
- CGMH, Taiwan’s largest hospital, has established the Center for Artificial Intelligence Research in Medicine (CAIM) to help implement AI in real world clinical practice. By using Pure’s technology, CGMH has transformed processes in blood classification which usually takes 5 minutes to just 2 seconds.
- The Institute of Public Administration (IPA) in Saudi Arabia has leveraged Pure’s technology to support online training for its 2,000 employees, who play a central role in the implementation of Saudi Vision 2030 and the National Transformation Plan for economic development.
- Metito, a leading global player in intelligent water-management solutions now relies on Pure’s technology to improve the performance of its business-critical applications, provide cost predictability, and simplify management.
- The Technical Agency for Information on Hospitalization (ATIH) in France works to improve the speed and efficiency of processing health data. Pure’s all-flash technology has delivered a 10-fold increase in processing speed, which has enabled AITH to deploy new data processing solutions.
- Localiza, the largest car rental network in South America, is leveraging Pure’s technology to support its digital transformation. Pure is helping Localiza to modernise its platform and reducing response time by 32%.
Our impressive customer roster, and recent revenue performance across all of our products and services just reinforces that we are delivering the solutions that organizations need.
One Big Virtual Team
It is by placing customers at the heart of our strategy and vision that has enabled us to deliver solutions that work for them and become their trusted partner. We are grateful for the support of our customers and partners. I’d also like to thank all Pure team members for all of their efforts during this crisis. Like most companies we have had to adapt to a new way of working, but it’s thanks to their amazing work in helping our customers and partners that we have had the quarter that we had.
I’ve always been proud of my international team, but seeing how everyone has pulled together over the past few months has been extraordinary. The challenges we have faced have only served to strengthen those bonds. We know that uncertainties lie ahead as we seek to navigate our way through his new normal and we have taken this into consideration in our expectations for the future. One area, however, where there is certainty is our focus on continuing to deliver the flexible, scalable and agile solutions that customers need now more than ever.