Analyst(s): Krista Case, Camberley Bates
Publication Date: February 6, 2025
Hammerspace achieved 10x revenue growth in 2024, driven by rising demand for AI storage and hybrid cloud computing. Its Tier 0 storage solution transforms underutilized NVMe storage inside GPU servers into a shared, high-speed data resource, eliminating bottlenecks and maximizing GPU efficiency. This innovation positions Hammerspace as a key enabler of AI infrastructure, solving a critical challenge in AI and high-performance computing environments.
What is Covered in this Article:
- Hammerspace’s record 10x revenue growth in 2024, driven by rising demand for AI storage and hybrid cloud computing.
- The inefficiencies in GPU storage, where local NVMe capacity remains underutilized.
- Hammerspace’s Tier 0 storage solution eliminates bottlenecks, enabling GPUs to access data instantly and improving AI workload efficiency.
- Enterprise and government adoption highlighting strong market validation.
- Hammerspace’s global expansion into Asia, workforce growth, and leadership hires to drive international adoption.
The News: Hammerspace reported 10x revenue growth in 2024, driven by rising demand for AI storage and hybrid cloud computing. The company’s Tier 0 storage solution, launched in November 2024, transforms local NVMe storage in GPU servers into shared storage, eliminating bottlenecks and improving GPU efficiency.
Key customers, including Meta, the National Science Foundation (NSF), and the Department of Defense (DoD), have adopted Hammerspace’s solutions to enhance AI infrastructure. The company also expanded into China, South Korea, Japan, Singapore, and India, appointing Jeff Giannetti as CRO to drive global growth.
Can Hammerspace’s Tier 0 Unlock the Full Potential of AI GPUs?
Analyst Take: The rapid expansion of AI and high-performance computing has placed unprecedented pressure on existing storage infrastructure. While GPUs have become the backbone of AI workloads, their efficiency is often throttled by slow data access, leading to the underutilization of costly computing resources. Hammerspace’s 10x revenue growth and rapid customer adoption reflect a market shift toward more efficient AI storage solutions. With its Tier 0 storage solution, the company addresses a fundamental inefficiency in GPU infrastructure, unlocking stranded NVMe capacity while improving data access speed and cost efficiency.
The Hidden Bottleneck in GPU Computing
AI workloads require high-speed data access to keep GPUs running at full capacity, but traditional storage architectures create delays that slow processing. Organizations have relied on external storage systems, leaving high-speed NVMe storage inside GPU servers underutilized. This results in higher costs, wasted storage capacity, and increased power consumption.
With growing AI model complexity and larger datasets, delayed data retrieval forces GPUs to remain idle instead of performing computations. Given the significant investment in GPU infrastructure, enterprises are now prioritizing solutions that eliminate storage inefficiencies, ensuring seamless data flow to maximize processing power and cost efficiency.
Hammerspace’s Tier 0: Advancing AI Storage Efficiency
Hammerspace’s Tier 0 storage solution addresses this challenge by transforming local NVMe storage into a shared, high-speed data resource. Instead of requiring new storage hardware, Tier 0 unifies fragmented, siloed data within GPU clusters, enabling instant access to data across nodes. By leveraging standard Linux NFS capabilities and the Linux 6.12 kernel’s local I/O patch, the solution allows direct, high-speed data transfer without additional software installation on compute nodes. This eliminates storage bottlenecks, ensures peak GPU utilization, and reduces infrastructure costs by eliminating the need for external high-speed storage. As AI models grow in complexity, solutions like Tier 0 will be critical in optimizing both performance and cost efficiency.
Global Expansion and Industry Adoption
Hammerspace’s rapid adoption across enterprises and government organizations reflects the growing need for AI-optimized storage. In 2024, the company saw a 32% increase in its customer base, alongside strong customer retention (Gross Revenue Retention (GRR) > 95%) and expansion (Net Revenue Retention (NRR) > 330%), signaling strong organic growth within existing accounts. Key clients such as Meta, NSF, and DoD have integrated Hammerspace’s solutions to support AI model training, research data aggregation, and large-scale computing.
To capitalize on this momentum, Hammerspace expanded its global footprint and workforce, with a 75% increase in headcount in 2024, particularly in go-to-market and customer support teams. In January 2025, the company launched operations across Asia, setting up resources in China, South Korea, Japan, Singapore, and India. Additionally, the appointment of Jeff Giannetti as Chief Revenue Officer highlights a focused push toward international expansion and market penetration.
What to Watch:
- Hammerspace’s ability to scale its Tier 0 storage solution will determine its long-term competitive positioning in AI infrastructure.
- Wider enterprise adoption may hinge on continued performance validation and seamless integration with existing AI workloads.
- Sustaining high customer retention (GRR > 95%) and strong spending growth (NRR > 330%) will be key indicators of success.
- Expansion into Asia presents opportunities but also challenges in competing with established vendors and navigating regional data regulations.
See the complete press release on Hammerspace’s 10x revenue growth and Tier 0 storage innovation on the Hammerspace website.
Disclosure: The Futurum Group is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
Analysis and opinions expressed herein are specific to the analyst individually and data and other information that might have been provided for validation, not those of The Futurum Group as a whole.
Other insights from The Futurum Group:
Hammerspace Expands Global Data Platform with New Appliances
The New Tier 0 from Hammerspace – Six Five On The Road at SC24
SuperComputing 2024: A Playground for the Future of Technology
Author Information
With a focus on data security, protection, and management, Krista has a particular focus on how these strategies play out in multi-cloud environments. She brings approximately 15 years of experience providing research and advisory services and creating thought leadership content. Her vantage point spans technology and vendor portfolio developments; customer buying behavior trends; and vendor ecosystems, go-to-market positioning, and business models. Her work has appeared in major publications including eWeek, TechTarget and The Register.
Prior to joining The Futurum Group, Krista led the data protection practice for Evaluator Group and the data center practice of analyst firm Technology Business Research. She also created articles, product analyses, and blogs on all things storage and data protection and management for analyst firm Storage Switzerland and led market intelligence initiatives for media company TechTarget.
Camberley brings over 25 years of executive experience leading sales and marketing teams at Fortune 500 firms. Before joining The Futurum Group, she led the Evaluator Group, an information technology analyst firm as Managing Director.
Her career has spanned all elements of sales and marketing including a 360-degree view of addressing challenges and delivering solutions was achieved from crossing the boundary of sales and channel engagement with large enterprise vendors and her own 100-person IT services firm.
Camberley has provided Global 250 startups with go-to-market strategies, creating a new market category “MAID” as Vice President of Marketing at COPAN and led a worldwide marketing team including channels as a VP at VERITAS. At GE Access, a $2B distribution company, she served as VP of a new division and succeeded in growing the company from $14 to $500 million and built a successful 100-person IT services firm. Camberley began her career at IBM in sales and management.
She holds a Bachelor of Science in International Business from California State University – Long Beach and executive certificates from Wellesley and Wharton School of Business.
