Monday, 06 June 2016 18:01

SimpliVity closes its largest multi-million dollar deal yet with Global 50 enterprise

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SimpliVity proudly boasts that "enterprise customers" are flocking to its highly advanced yet simple hyperconverged solution as the company drives mainstream IT adoption for mission-critical applications in Global 2000 companies.

Global leader in "enterprise IT-revolutionising hyperconverged infrastructure", SimpliVity, has released first quarter results that it says "demonstrate a surge in enterprise demand to run mission-critical applications on SimpliVity’s hyperconverged infrastructure, signalling the market’s transition to mainstream adoption – with SimpliVity at the helm".

They are big words, not just because of the voluminous number of letters in many of the words in the previous sentence, but because they throw down the gauntlet to competitors, because they take pride in customer successes and helping customers succeed, and because it’s a great achievement for a company that has made hyperconvergence 3.0 a reality.

My most recent report on SimpliVity is entitled ‘VIDEOS: SimpliVity’s Doron Kempel talks hyperconvergence and the future,’ and features two videos. The first is with Scott Morris, SimpliVity’s vice-president for Asia Pacific and Japan, giving a great overview of SimpliVity’s growth and regional plans.

The second video features SimpliVity chief executive, Doron Kempel, who provided a unique view into what’s on the horizon for businesses and enterprises looking to simplify their IT systems.

Both speakers can be seen in full the link above (or here).

Compared to the first quarter of last year, SimpliVity states it has "increased its total customers by 177% year over year with a repeat purchase rate of more than 30%", which the company says indicates its "continued leadership in this exploding market".

The quarter was also fuelled by SimpliVity’s largest enterprise transaction to date, a Fortune 50 financial services firm that chose SimpliVity after a thorough evaluation of all legacy and alternative hyperconvergence technologies, and will replace all legacy IT infrastructure and support all mission-critical applications on SimpliVity.

SimpliVity proudly boasts that it "continues experiencing stellar win rates even as legacy vendors enter hyperconverged market".

The company then says that "Q1 2016 also saw a lot of activity and product announcements within the hyperconverged infrastructure market, especially from legacy storage vendors who have been impacted by recent declines within the enterprise storage market".

According to IDC’s Worldwide Enterprise Storage Systems tracker, Q4-2015 "spending on total enterprise storage fell 2.2% during the final quarter of 2015".

By contrast, SimpliVity is keen to point out that it and its partners "win more than 80% cent of qualified opportunities against all competitors — legacy and converged — due to its more mature and advanced hyperconverged offering".

Kempel said: “SimpliVity’s immense investment in its foundational technologies  6.5 years thus far  is paying off just as adoption of hyperconverged infrastructure is accelerating within large enterprises.

“Other hyperconvergence upstarts rushed into the market early on with limited capabilities, while the most recent entrants have hastily introduced products as the market has grown.

“SimpliVity, on the other hand, has industry-proven technology, supporting mission-critical applications in some of the largest companies in the world. Our early investment allowed us to deliver a more complete offering to customers  providing all enterprise IT infrastructure, storage and data services, and giving SimpliVity the ability to transform customer data centres around the globe with support from a dedicated partner community.”

Fortune 50 financial services firm transforms its enterprise IT with SimpliVity and Cisco UCS

A financial organisation named by Forbes as one of the world's top hundred most valuable brands turned to SimpliVity to drive down $100 million in IT infrastructure and operational costs, consolidating six current data centres down to just three all built from the ground up.

SimpliVity says its "OmniStack Integrated Solution with Cisco UCS will completely transform [the financial organisation’s] data centre, running 100% of workloads, including all mission-critical applications and SimpliVity’s built-in data protection. The hyperconverged solution will also provide cost-effective application deployment while reducing its data centre footprint".

With about 1000 Cisco systems deployed across hundreds of customers, SimpliVity states it is "the No. 1 deployed hyperconvergence vendor for Cisco UCS".

Additional OmniStack customers for Cisco UCS include some of the largest organisations in the world, such as "a top five global insurance company, a worldwide media company, and one of the three military departments of the US Department of Defence".

SimpliVity reports ‘demand surges for hyperconvergence in the enterprise’

SimpliVity says it saw "a steady increase in million-dollar deals and traction with Fortune 500 and Global 2000 enterprises, as they want 'proven, industry-leading solutions' to support mission-critical applications".

The average deal size for OmniStack for Cisco UCS Servers and Lenovo Systems "grew by 43% quarter over quarter and momentum continues to build".

An April 2016 IDC White Paper, sponsored by SimpliVity, and entitled "SimpliVity Hyperconvergence Drives Operational Efficiency and Customers are Benefitting, April 2016" (free PDF after free registration), highlighted why some enterprise customers are rapidly switching to SimpliVity: "the company’s hyperconverged infrastructure increases operational efficiency, freeing enterprise IT resources to focus on business innovation".

In fact, SimpliVity says ‘the IDC study revealed that customers increased the time spent on innovation and new projects from 16% to 29%  the equivalent of an 81% increase.

Eric Sheppard, research director, IDC Corp, said: “As OpEx costs continue to rise, companies around the world are investing in technologies that can reduce the overall spend and allow them to refocus funds on driving business outcomes rather than maintaining the status quo.

“Our recent survey of SimpliVity customers tells us that the company’s hyperconverged solutions are helping to solve these very challenges by reducing complexity and combining many IT functions into one solution.”

Additional Q1 2016 milestones reported by SimpliVity include:

  • Customer satisfaction and returning customers: After announcing new enterprise-grade support services, SimpliVity reported an overall customer CSAT rating of 9.5 out of 10.
  • Channel program expansion: SimpliVity also rolled out the PartnerAdvantage program in several new countries: Argentina, Ecuador, Guadeloupe (France), Uganda, and Zambia, grew the number of partner reps trained on SimpliVity’s solutions, and hired Geoff Fancher as vice-president of North American Channels. He brings more than 30 years of technology experience to his role.
  • Partners become more seasoned with selling SimpliVity: SimpliVity’s 100% dedication to the channel continues to pay off as the company saw growth in overall partner productivity. The number of partners that have won opportunities with SimpliVity on a repeated, consistent basis increased by 55% quarter over quarter.
  • Global go to market reach: SimpliVity’s global market coverage includes more than 90 territories across the globe, with about half in North America and the rest in Europe, the Middle East, Africa, Asia-Pacific, and Japan.

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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