The Six Five team discusses Pure Earnings.
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Transcript:
Daniel Newman: Pure Storage. Our friend Charlie Giancarlo, CEO of Pure Storage just said to me on a making markets episode, that external market condition doesn’t matter to him as much because there’s so much market share for him to get. And I say-
Patrick Moorhead: That’s so baller. I love that.
Daniel Newman: Yeah. And like I said, that was very verbatim but that was effectively what he said is look, if we were out. It doesn’t matter the market. If we do what we do, we will continue to grow and they’re doing what they’re doing and they’re continuing to grow 26% year on your growth to 2.75 billion, Pat. Great little at a glance mean that you shared, I re-shared your share of Steve’s share. Steve McDowell storage analyst at Moor Insights & Strategy came out with a good piece. Like I said, sometimes borrowing is the best. It’s just faster. And at a glance, kind of running this down, big energy savings company’s got a good economical sustainability story is up to 80% of what the customer’s seen. They’ve gone to 11,000 customers. And Pat that number, customer obsessed is the word of the day for Pure Storage.
This is a customer obsessed company. Never seen a company post their net promoter score. Never seen an infrastructure company spend so much effort to share their net promoter score on their earnings. 85.2, it’s in the top 1% of B2B companies. It’s not even close Pat, I think we’re a 90 at future term research because I made that up. But in all serious, it’s just not a common behavior trait of B2B companies to be this customer obsessed. And they have done that extremely well. They’re seeing their margin go up, they’re seeing their subscriptions up 30% Pat.
Storage, you could say it’s boring but it’s necessary. And the company is doing it right, doing it in the cloud. They’re doing the infrastructure, making it as a service, focusing on customers. Economical sustainability. I’m repeating myself now, sorry, it’s kind of straightforward. But Charlie and team congrats. This is a good result based on good work that’s been done over the last several years and I don’t see it changing direction, Pat.
Patrick Moorhead: Yeah. I kind of view this as the Tesla of this storage industry. Everybody thought that Pure was doing so well because it was primarily a flash play and flash means it’s basically hardware and oh, when everybody else gets flash, everybody else is going to come and they’re going to wipe out Pure. Well, what happened was very interesting. In fact, it’s not a hardware play. I view Pure as a software play. Yes it does have a very revolutionary architecture, particularly when it came out. But it’s seemingly always one step ahead of the competition. First of all, from an architectural basis. Why is Pure so good at ESG? Well I wrote an article about this. Architecturally what they use, it’s more of a bladed architecture that when you need a new capability, you don’t throw out the entire array. You put in a new new blade, 97% of Pure Storage arrays are still in service.
Think about that for a second. Upgrade your software, you upgrade the modules, you don’t rip and replace and throw out the old version. You tag that up with as a service. And yes, this is the real deal. This is not greenwashing at all. Because essentially you, you’re lowering your costs or you’re having eye bleeding performance for what you want to do for the likes of the largest hyperscalers out there. Yes, believe it or not, they can’t talk about it a lot. A lot of the largest hyperscalers are using Pure Storage as opposed to using their own home built or homegrown storage arrays. It truly is a success story. And I think it’s also in another way, it’s also kind of an Apple play which says nobody can make money in hardware. Well actually you can if you are chronically and constantly, first of all change the game coming in.
Like Apple, Pure was not the first storage array provider. In fact it was like the 27th. Apple was not the first smartphone provider, it was the 27th. What they did is they came in with something that was radically different. It was more software defined and then service defined than the hardware. Don’t get me wrong, the hardware’s hot and the hardware’s sexy, especially the upgradable architecture. But in the end they keep moving forward because of their software, not because of their hardware.
Author Information
Daniel is the CEO of The Futurum Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise.
From the leading edge of AI to global technology policy, Daniel makes the connections between business, people and tech that are required for companies to benefit most from their technology investments. Daniel is a top 5 globally ranked industry analyst and his ideas are regularly cited or shared in television appearances by CNBC, Bloomberg, Wall Street Journal and hundreds of other sites around the world.
A 7x Best-Selling Author including his most recent book “Human/Machine.” Daniel is also a Forbes and MarketWatch (Dow Jones) contributor.
An MBA and Former Graduate Adjunct Faculty, Daniel is an Austin Texas transplant after 40 years in Chicago. His speaking takes him around the world each year as he shares his vision of the role technology will play in our future.
