Software and Data Efficiency Define Storage Differentiation
Last Friday, Violin Memory went public and they didn’t really knock it out of the park. In fact, they ended their first day down over 22%. Several analysts hit the nail right on the head though. Just like I mentioned in my Valuation Math blog, it’s all about software and margins.
Steve Duplessie from ESG tweeted: “Violin …stumbling because it has limited software, thus margins.”
Arun Taneja from the Taneja Group was also quoted “’‘Violin excels in performance while falling short on some software capabilities…’”
Even Chris Mellor at The Register picked up on this, “Violin lacks deduplication, which would drive down its cost/GB (improve margins)….”
There you have it, software and data efficiency define storage differentiation, say the experts.