Pivot3 Increasing Revenue by 50% From 4Q15 to 1Q16

Pivot3, Inc., provider of dynamic hyperconverged solutions, demonstrated growth and market leadership in 2015 with new products, and partnerships, as well as new and expanded customer deployments.

This growth has extended into 1Q16, where the company delivered its highest revenue growth rate in history.
 
The year 2015 was pivotal for setting the company up for rapid growth, which continues in 2016.

This growth in 1Q16 included:

• Increasing quarterly revenue by more than 50% from 4Q15 to 1Q16;
• More than doubling the size of the development team, giving a strategic advantage in a crowded market;
• Expanding the size of the go-to-market team by almost 50%;
• Continuing to expand the HCI and storage product portfolio with customer installations that address a larger set of use cases in the data center;
• Providing customers with a greater option of server platforms by certifying Lenovo and Cisco as OEM platforms;
• Expanding international distribution and sales, and delivering groundbreaking new business in Latin America and the Middle East;
• Increasing channel partner community by more than 400%;
• Acquiring PCIe storage technology leader, NexGen Storage, to enable the company to offer customers a broad choice of capabilities, while redefining the hyperconverged market by adding dynamic QoS capabilities that guarantee the performance of key workloads across the data center; and
• Integrating NexGen Storage with Pivot3, as well as completing initial work on a new series of products leveraging the technology from both companies.

Pivot3 also saw 50% of its revenue in 1Q16 coming from use cases outside of the single use case of video surveillance data management, the company’s historic ‘beachhead’ application. New use cases driving growth include virtual desktop, remote offices, database, BC and server virtualization, which demonstrates Pivot3’s dynamic range in supporting workloads of all types and requirements.

The company’s revenue is evenly split between new customer acquisition and customer expansions of existing implementations, with most of its installed base of customers expanding from HCI for surveillance into other use cases.

At the same time, the video surveillance business continues to grow by more than 50%.
 
“We started using Pivot3 solutions to help us manage video surveillance data to mitigate risk and litigation,” said Philip Lisk, director of information technology, Bergen County Sheriff’s Office. “After seeing first-hand the impressive results of Pivot3’s solution, we implemented and expanded it to other IT workloads, including VDI, in order to reduce cost, simplify manageability and increase storage and compute performance.”
 
Because of Pivot3, Bergen County has been able to reduce the amount of time needed to manage their data center. Additionally, their power consumption has been reduced by a third and their storage capacity has increased five fold.
 
Lisk continued: “This is the next era in technology, and our hope is to continue rolling out Pivot3’s unique software across our data center to move us closer to a software-driven model.”  
 
“We are seeing a shift in buyers, as more than half of our conversations are now with CIOs who are keenly aware of the positive impact hyperconvergence can have on their data center. Customers are reducing the TCO of their infrastructure, and they have the agility to adapt as new business requirements emerge, being able to efficiently manage the explosion of data while reducing complexity in their data center,” said Pivot3 CEO, Ron Nash. “Because Pivot3’s patented technology is more efficient and reliable than any other hyperconvergence solution on the market, CIOs are turning to us to support an increasing number of workloads in the data center, as is evidenced in our growth over last year.”
 
Pivot3’s momentum aligns with the growth of the hyperconverged market. According to Technology Business Research, annual hyperconverged platform purchases are nearing $10.6 billion in United States data centers. Drawn to more efficient internal processes and operations management, organizations are increasingly turning to hyperconvergence when upgrading their hardware infrastructure.
 
Despite a slowing venture capital investments climate, investors and financiers see the growth potential in Pivot3, and as a result provided an additional $55 million to Pivot3 in March. This funding will fuel growth and allow to continue to extend its leadership by bringing to market a suite of hyperconverged and storage solutions available, with dynamic provisioning and guaranteed workload performance.
 
“Pivot3’s accomplishments over the past year have put us in an advantageous position to help customers take advantage of this emerging technology opportunity,” Nash continued. “Supported by forward-thinking customers, new channel partners and a visionary leadership team, Pivot3 will continue to transform the market and allow organizations to realize the potential of the software-defined data center.”
 
Pivot3 now operates in 53 countries and supports more than 2,000 customers.