2/27/2024 0 Comments Nimble storage market cap![]() ![]() At one point, at the dawn of the internet, EMC was one of the so-called four horsemen companies and was priced as though it would never face competition. Going back many years, there has never been a low-risk way of investing in the enterprise storage space. It may have entered the lists for AFA just in time and its latest forecasts call for growth to re-accelerate. For some years, its focus was on a hybrid flash product which is probably on the road to obsolescence. It entered the market for what are called all-flash arrays ( AFAs) just a few months ago and its growth trajectory is certainly less well-established than that of its larger rival. The company, at least thus far, has shown a less distinct path to profitability although there are signs of improvement in the last couple of quarters. Nimble share valuation is significantly cheaper than Pure and there are many reasons for that. It would appear to have developed a positive culture with regard to customer engagement that is not seen on the part of most other industry vendors - NTAP had but later lost that distinction some years past. It has made the leadership quadrant of all of the MQ surveys that get published and of equal significance it has achieved a remarkable score in terms of user satisfaction that was remarked on by IDC in its latest survey as being unprecedented. It has shown signs of a real path to profitability and its market share gains are stunning. ![]() While high-growth companies can readily hit murderous speed bumps, at this point, I think the odds favor Pure's ultimate success. I think as a company and as an investment, Pure is easier to understand. Nimble and Pure have some similarities and differences. Spinning discs are on a course to sunset in the next few years and the market will be more transformed by that time than has been the case since NetApp ( NTAP) came into the market in the 1990's with network attached storage ( NAS ) but this is a far more basic transition than that ever proved to be. Flash marks a transformation of the same magnitude that spinning disc represented when it replaced tape at the start of my business career. Spinning discs are a mechanical product that has the limitations and constraints inherent in all mechanical products. I first got into the IT business working for IBM right after the dawn of spinning discs. When I originally composed this sentence, I wanted to say that flash is the hottest trend in storage since the last one. ![]() And so while the article is a bit long, readers get to learn about two companies for the price of a single read.) The lead in is the title for a song in the Irving Berlin hit of 1946 called 'Annie Get Your Gun' which was one of the showstoppers of that very successful musical. But many investors seem to consider them in the same context and so I think it makes sense to include them in the same article. It appears that over time that they will become competitive but that is not quite the case these days. (At this point Nimble and Pure are really only competitors in that they both provide flash storage products. They were both formed about a decade ago to provide flash storage arrays in competition not just with each other but almost every storage vendor who has ever walked the earth. Pure Storage ( NYSE: PSTG) and Nimble Storage ( NYSE: NMBL) are the current enfant terribles of the enterprise storage business.
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