Release Date: December 03, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What drove the decision by the hyperscaler to choose Pure Storage over building their own solution, and what is the potential revenue opportunity? A: Charles Giancarlo, CEO, explained that Pure Storage's unmatched reliability, power savings, and price-performance ratio were key factors. The hyperscaler valued Pure's ready-to-deploy technology, which fit well with their architecture. Kevan Krysler, CFO, noted that the hyperscaler market drives 60-70% of all disk sales, indicating significant long-term revenue potential for Pure. However, meaningful revenue contribution is expected in FY27, with no hardware included in the sale.
Q: Can you explain the financial mechanics of the hyperscaler deal and whether they plan to go 100% flash? A: Charles Giancarlo, CEO, clarified that Pure is licensing both software and hardware design, with the hyperscaler purchasing hardware from an integrator. The hyperscaler aims to use a consistent architecture across most of their storage, including higher performance storage, which is currently SSD-based.
Q: What is the expected size and structure of the hyperscaler deal, and will it be gross margin accretive? A: Kevan Krysler, CFO, stated that the deal is multiyear, with volumes yet to be determined. The majority of the deal's value will be hardware, impacting gross margins. The company expects gross margins to align with current company averages.
Q: How does the opportunity evolve with density expansion of DFM modules? A: Charles Giancarlo, CEO, noted that while the opportunity doesn't depend on specific modules, the roadmap, including higher density modules, played a role in the hyperscaler's selection. The technology's ability to serve both low-cost and high-performance needs with a single architecture is a significant advantage.
Q: How does the CoreWeave partnership differ from the hyperscaler opportunity? A: Rob Lee, CTO, explained that the CoreWeave partnership expands Pure's presence in the GPU cloud market, making Pure's technology available in CoreWeave's dedicated cloud. This partnership builds on a previous large-scale deployment and is separate from the hyperscaler deal.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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