- The Wall Street Journal takes a look at the rise in use of and revenue derived from flash-based storage products over recent years.
- Pure Storage (NYSE:PSTG) and Nimble Storage (NYSE:NMBL) are highlighted with respective 9,650% and 641% annual revenue increases from 2013 to the present trailing 12 months period.
- The examination, however, cites a 20% decrease in share price for Pure Storage on the year with a 9% lower price for Nimble Storage over the same term. Competition in the enterprise data storage space, particularly in regard to flash solutions, is cited as becoming increasingly tight as demand for more efficient data centers continues to rise.
- Flash arrays offered by competitors EMC (DVMT), IBM (IBM), NetApp (NASDAQ:NTAP), Hewlett Packard Enterprise (NYSE:HPE), Hitachi, Oracle (NYSE:ORCL) and others are expanding onto the market and subsequently heightening pricing pressure within it.
- Despite a competitive strain, the report goes on to assert current downcast valuations for small players in the area, especially Pure and Nimble, could pose appealing buyout opportunities going forward.