Pivot3 Blog

Why 2017 Will Be the Year of Hyperconvergence

It’s hard to ignore hyperconverged infrastructure these days. After HCI vendor Nutanix went public this past fall followed by HPE acquiring SimpliVity just days ago, business leaders and investors are curious about this technology that’s taking the IT world by storm.

I’m frequently asked what I think of these recent developments and what it means for Pivot3. Here are a few thoughts.

1.    HCI has reached a new level of validation by the market. For years, larger, incumbent IT companies have been ignoring HCI, hoping it’s just a fad that will quietly fade away. But it’s hard to argue with customers, who are clearly attracted to the simplicity and economics of HCI. In order to stay out ahead of leaner, more agile startups, larger vendors have tried to cobble together solutions or acquire another company’s HCI technology, which further validates what we’ve been saying for years: that HCI is bringing about a fundamental, software-defined evolution in the datacenter.

2.    In today’s VC climate, slow and steady wins the race. According to Dow Jones VentureSource, funding for U.S. startups fell 32 percent in 2016. I believe the old model of burning through cash in a drive to achieve unicorn status is growing stale, and we’re entering a new era in which the winners and losers will be determined by both profitability and technology. As investors scrutinize their portfolios more closely, startups will start to feel the pinch, causing them to sell out or rush to IPO out of desperation.

At Pivot3, we sensed this shift early on, and decided to focus on sustainable growth, profitability and long-term stability. This gives us freedom: freedom to be more agile, more aggressive and more innovative than everyone else. Our funding supports growth and development which allows us to make smart business decisions with the best outcome for our customers, partners and employees.

3.    Customers are trusting HCI even more. We are moving beyond the single-workload-only use of hyperconverged, with customers deploying more business- and mission-critical applications onto HCI platforms. Implementations sizes are also increasing; Pivot3 currently powers two of the world’s largest HCI installations. As IT moves more applications onto HCI infrastructure, businesses need to ensure that these applications receive the appropriate level of performance and resources at all times. This means that automated policy-based management, like Pivot3 provides, will become increasingly important and I think, a game-changer in the world of HCI solutions.

4.    2017 will be the year of hyperconvergence. I’ve witnessed several big waves of technology throughout my career, and HCI is poised to outshine them all. With every new wave comes a fundamental change to the traditional way of doing things.

As HCI and software-defined technology becomes more pervasive, new industry giants will emerge. Some speculate that the only way to survive is through acquisition, but I would argue that this new wave of technology is big enough to support the rise of several new leaders that can stand on their own for decades.

At Pivot3, we’re building a company for the future. That means creating the smartest infrastructure for the modern data center, one that provides the best scalability, performance and storage efficiency. It also means running a sustainable business, with a smart strategy, unified vision and the world’s best team. Pivot3 is set on continuing to deliver on that model, and providing the leading HCI technology in the industry.