You can install Pure products in the enterprise with an instruction sheet that is on a business card, and in fact is on a business card.
It is taking what Apple did and what SaaS has done to dramatically improve customer experience and value and bringing it forward to the storage world.
Pure products are specifically architectured to be that simple, and to enable Evergreen, and yet be as sophisticated as any enterprise product out there (and this is still improving as more and more functions are put out there).
No one comes close to the duplex ratios that PSTG does.
And to meet what PSTG does EMC and NTAP would need to totally change the architectures of its products, its software, and its business models. They will not be able to do so without totally upheaving their businesses. They are built for 5 year forklifts and selling all new storage, all the time.
I agree, I don’t know if this Evergreen model, where they get 3 year service contracts and only sell incremental data storage, that also comes with additional 3 year service contracts, is a viable business model or not.
However, they have reached $1 billion in sales faster than any data company in history, and they are cash flow positive from operations and nearly free cash flow positive (if not FCF positive) at present. Thus evidence that the business model can indeed work. They are shooting for 12 to 15% net margins in the current tax environment.
The share price only has stagnation and failure and inability to turn sustainably profitable built into it. And maybe that will be the case in the end. Their new Blade product is clearly prechasm and it is very possible that no real place for it will be found in the market. That product is a brilliant risk, and not all brilliant risks work out in the end.
So you are correct, but there are also reasons to think you are not correct. The share price agrees with you, which creates a rare opportunity of an actually performing very well, with high growth potential company, disrupting an industry, that is not priced in consistent with its narrative and with its business execution.
Normally the market is correct. But in this instance, and I am usually quite resistant to buying anything where the share price dictates failure, but here the share price is also considered expensive by some, and for the rest, I do not see the negatives coming to pass.
In particular, generic white box software will, I think, have higher cost of ownership, and maybe by quite the margin, over the proprietary solutions offered by Pure, thus they are not competing on price, but value of the whole product to its customers. Which is similar actually to ANET, but lets not compare the two any closer as they are different animals without question despite some similarities in thought and execution.