This week, we have seen a couple big announcements from Pure Storage. First, Pure announced strong financial results for the fiscal quarter. Leading to its stock price increasing as much as 19% and reaching all times highs. The news doesn’t stop there, however. Pure Storage also announced the acquisition of StorReduce, a software company that delivers a cloud-first software-defined storage platform for managing large scale unstructured data. Pure Storage also gets access to StorReduce’s deduplication technology.
All and all, it was a good week for Pure.
On the acquisition, from what I have seen so far, I love the move. Acquisitions are, however, tricky business. For a company like Pure, where culture is so important, there can be some unsuspected growing pains bringing a new group into the family. That being said, there is a lot to like, and it is all based on where IT is headed.
Remember the days of high performance tier-1 SAN storage and slower tier-2, or archive, file/object storage? Yeah, those days are gone now. And by gone, I mean yes, IT organizations often still perceive data storage this way. To compete in the digital economy nowadays, however, this model just doesn’t work anymore. There are several truths in the new world of IT that everyone needs to understand:
- Both block and file data are critical to business success: Databases have long been high priority workloads, but lately, unstructured (file/object) based workloads have risen in priority. When you think about the workloads that are among the top growth areas, such as big data analytics, AI/ML, and IoT, all of these workloads are highly important and have heavy file data requirements.
- All important data (yes, that includes file, too) needs to be fast data: Companies that understand the value of their data and how to harness it most effectively understand the value of high performance storage platforms. To keep pace, these workloads often require incredibly low-latency data access. This is an area where Pure excels.
- Multi-cloud infrastructure is the norm: According to ESG’s research, 85% of organizations leverage public cloud services. And 81% of infrastructure-as-a-service (IaaS) users leverage more than one IaaS partner. Enterprise storage needs to comprehend the cloud, and not as a disparate remote silo, but as an integrated part of the solution. Here is where StorReduce’s platform and deduplication will likely play a role.
Ultimately, this acquisition should be good for Pure, good for StorReduce, and good for their customers. IT organizations need high performance data platforms of both block and file data that can scale beyond the data center and into the cloud. But only time will tell. I like the technology, and the fit, but, like I said, acquisitions are tricky business. Getting a bunch of passionate engineers to work together can be more complex than you might think. We will just have to wait and see.