Storage Soup

Oct 31 2018   2:39PM GMT

Pivot3 spins larger HCI deals

Dave Raffo Dave Raffo Profile: Dave Raffo

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Pivot3

If Pivot3 is a valid indicator, the hyper-converged market is not only adding customers rapidly, it’s also moving into far bigger deals.

Pivot3 was among the first hyper-converged vendors, and the private company now competes with the largest storage and server vendors. Pivot3 claims its third-quarter books grew 50% over the same period last year. More impressively, it’s average deal size in the quarter nearly doubled from the 2017 average. Pivot3 said its deal size increased 95%, as 86% of new bookings came from large enterprises and more than 70% of new cutomers deployed multiple workloads on Pivot3 Acuity HCI products.

Bruce Milne, Pivot3’s chief marketing officer, said the vendor last quarter landed its biggest deal ever, a federal government contract. Milne said Pivot3’s background selling storage for video surveillance is paying off, as cities around the world are buying its HCI systems to deploy analytics and applications such as facial and license plate recognition software.

“More people are deploying an entire platform as opposed to a single application,” Milne said. “As market acceptance of hyper-convergence accelerates, larger companies are also realizing they’ve been missing out.”

Milne said Pivot3 has more than 2,500 customers. It has raised $253 million in venture funding, but none since early 2016.

Milne said Pivot3 is “making good progress” towards profitability but remains in growth mode. He said Pivot3’s investors are happy with its progress, and the company is adopting good business practices. He said Pivot3 is aiming for profitability in late 2019. “We won’t predict a specific quarter [to hit break-even], we can continue to invest in innovation,” Milne said. “We’re competing with big vendors and we don’t have a huge amount of pressure to become profitable. We went to do it for our own purposes. We’ve flattened our spending and increased bookings. It’s a good trajectory to be on.”

Milne said Pivot3 will add business policity management capabilities to its Acuity product by the end of 2018, extending its ability to manage data services and application on the platform. He said Pivot3 will also enable the ability to move workloads to and from public clouds, the way it does now for data.

That follows a few hardware releases in recent months. Pivot3 in August released a ruggedized system aimed primarily at military and intelligence organizations in the field, and formalized a partnership with Lenovo to sell its HCI software on ThinkSystem servers.

Milne said a large deal with the city of Bogota, Colombia, involving Pivot3 and Lenovo helped bring about the formal partnership.

“That cemented an opportunitie for smart cities, internet of things and edge computing with Lenovo, and was the catalyst for a larger joint go-to-market deal,” he said.

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