Pure Storage (PSTG - Free Report) recently launched new cloud-based services in a bid to provide a hybrid storage architecture which eliminates the rigidity of choosing either on-premise or cloud infrastructure.
The new suite of Pure Storage Cloud Data Services will run on industry-leading cloud platform of Amazon’s (AMZN - Free Report) Amazon Web Services (“AWS”). The latest Pure Storage Cloud Data enables customers to bring storage software directly to cloud platforms.
With the new suite of services, Pure Storage strives to empower customers with flexibility in the data-driven era in which enterprise application mobility is vital. Moreover, the cloud data services users can leverage the company’s robust storage capabilities including multi-zone replication, data reduction and snapshots.
In the words of Charles Giancarlo, chairman and CEO, Pure Storage, "Customers should be able to make infrastructure choices based on what's best for their environment, not constrained by what the technology can do or where it lives.”
Features & Availability
The unified cloud data services enable customers with sturdy storage support to develop applications which can run on “all clouds”. The new set of Pure Storage’s Cloud Data Services will support the company’s software applications on AWS, comprising Cloud Block Store for AWS, CloudSnap for AWS and StorReduce.
Cloud Block Store for AWS provides hybrid mobility which aids mission-critical applications to function in the cloud. Cloud Block Store also permits users to add new storage services which enable webscale applications to run on cloud.
CloudSnap for AWS ensures data protection and facilitates the transfer of FlashArray snapshots to Amazon’s Simple Storage Service (Amazon S3), seamlessly.
The company attempts to make Cloud Block Store and Stor Reduce available by mid of 2019 and around first half of 2019, respectively. Meanwhile, the company announced the accessibility of CloudSnap, which offers cloud based data protection.
Cloud Based Storage Solutions to Aid Top Line Growth
Pure Storage’s recent buyout of StorReduce is enabling the company to provide enterprises with purpose-built backup appliances (“PBBA”). Further, management remains elated on gaining StorReduce’s de-duplication technology. StorReduce is aimed at providing backup and accelerating the analytics processes for the data warehouses.
Per ResearchAndMarkets data, the global data center storage market is envisioned to increase at a CAGR of 11.8% from 2018 through 2022. Further, per MarketsandMarkets, the hybrid cloud market is projected to reach $97.64 billion by 2023 from $32.87 billion valued in 2017at a CAGR of 17% from 2018 to 2023.
We believe Pure Storage is well poised to capitalize on the aforementioned growth prospects. The company is making continuous efforts to ensure its products deliver high quality storage solutions across all emerging data-driven technologies. The ongoing trends in enterprise mobility bode well in this regard. We believe this expansion of its product portfolio bodes well for the top line.
Other Players in the Market
With the strengthened portfolio, we expect Pure Storage to compete better in the market against its peers including the likes of NetApp (NTAP - Free Report) .
Notably, NetApp recently released Kubernetes Service with StackPointCloud buyout in a bid to accelerate cloud deployments. Further, with a view to expand its cloud-based data services portfolio, the company has introduced NetApp Cloud Volumes for Google Cloud Platform (“GCP”).
However, per latest data from Synergy Research, AWS dominates the cloud market, which adds on to the prospects of Pure Storage’s new solutions.
Zacks Rank & Key Pick
Pure Storage carries a Zacks Rank #3 (Hold).
Cadence Design Systems, Inc. (CDNS - Free Report) is a stock sporting a Zacks Rank #1 (Strong Buy), worth considering in the sector. You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Cadence is pegged at 12%.
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