With Industry-First Energy Efficiency Guarantee, Pure Storage Further Expands SLA Offerings for Evergreen//One

Rhea-AI Summary

Pure Storage (NYSE: PSTG) announced a milestone with its Evergreen Portfolio, surpassing $1 billion in Annual Recurring Revenue (ARR) for the first time, reflecting a 30% year-over-year growth. The company introduced a unique energy efficiency service level agreement (SLA) for Evergreen//One™, promising to enhance sustainability in enterprise storage. The SLA guarantees energy efficiency, allowing customers to measure actual Watts per tebibyte (TiB) and qualifies for service credits if targets are unmet. The subscription services revenue reached $244.8 million, up 30% year-over-year, underscoring strong demand for its services.

Positive

• Achieved over $1 billion in Annual Recurring Revenue (ARR), a 30% increase year-over-year.
• Introduced the first energy efficiency SLA in the enterprise storage market, enhancing competitiveness.
• Subscription Services revenue reached $244.8 million, up 30% year-over-year.

Negative

• None.

Pure Sees Strong Customer Adoption of its Evergreen Subscription Services, Surpassing $1B in ARR for the First Time

MOUNTAIN VIEW, Calif., Jan. 17, 2023 /PRNewswire/ -- Pure Storage^® (NYSE: PSTG), the IT pioneer that delivers the world's most advanced data storage technology and services, today announced continued growth of its subscription service offerings, including its Evergreen^® portfolio, in addition to a new energy efficiency service level agreement (SLA) for Evergreen//One™. The introduction of the new SLA represents the first and only energy efficiency guarantee in the enterprise storage as a service market, and supports Pure Storage's mission to provide customers with the most sustainable storage technology to meet their goals.

Momentum Highlights:

• Evergreen//One Energy Efficiency SLA: On the heels of introducing the Pure1^® Sustainability Assessment and the Energy Savings Visualizer to help customers dramatically reduce their environmental footprint, the new Evergreen//One SLA guarantees energy efficiency for organizations of any size.
• The energy efficiency SLA enables organizations to measure the maximum number of actual Watts per tebibyte (TiB).
• If the guaranteed Watts/TiB is not met, customers can request service credits and Pure Storage will execute remediation actions, including densification or consolidation, at no additional cost.

• Subscription Services Growth: As a result of increased demand from existing and new customers for its subscription offerings - including its Evergreen Portfolio (Evergreen//One, Evergreen//Forever™, Evergreen//Flex™), Pure Cloud Block Store, and Portworx^® - in the third quarter of fiscal year 2023, Pure achieved:
• Subscription Annual Recurring Revenue (ARR) of $1 billion for the first time, up 30% year-over-year.
• Subscription Services revenue of $244.8 million, up 30% year-over-year.

Industry Significance:

The enterprise storage industry has long been burdened by substantial energy usage, high costs, short technology refresh cycles, forklift upgrades, unplanned downtime, and overall data storage complexity.

Global enterprises, however, are on a path to embrace flexible, consumption-based operating models and modern services that both drive stronger value and efficiencies, and contribute to the overall reduction of environmental impact over time.

A recent IT Sustainability Impact Survey revealed that 86% of sustainability program directors recognize that companies cannot reach their sustainability goals without significantly reducing their technology infrastructure energy usage. However, organizations cannot manage sustainability without a reliable and consistent way of measuring it.

Through Pure Storage's global partner ecosystem, Evergreen//One enables customers to not only benefit from continuous innovation, financial flexibility, and operational agility, but achieve new levels of energy efficiency by measuring Watts per TiB to meet long-term sustainability goals.

Evergreen//One Milestones:

• Pioneered in 2015, Pure's subscription-based Evergreen Storage program paved the way for the new era of IT ownership by delivering a true subscription to innovation.

• In 2018, Pure Storage unveiled the first true consumption-based model for storage, Pure as-a-Service (now Evergreen//One), which delivers the agility and flexibility of public cloud storage with the security and performance of an all-flash infrastructure.

• In late 2022, Pure Storage's subscription Annual Recurring Revenue (ARR) - supported by the Evergreen Portfolio, Pure Cloud Block Store, and Portworx - reached $1.0 billion for the first time.

• Now, Evergreen//One enables customers to subscribe to five critical enterprise-grade SLAs, including no scheduled downtime for upgrades or maintenance, 99.9999% uptime guarantee, a 25% storage capacity buffer relative to usage, unrivaled storage performance aligned with service tier, and efficiency measured by Watts per TiB.

Executive Insight:

• "Data storage is historically one of the most challenging elements of running a business - it's dynamic, grows quickly, and requires extensive resources to provision and maintain. However, it's absolutely critical to operating a successful and scalable organization. Evergreen//One simplifies storage, scales with business, delivers consistency, and creates financial efficiencies. In fact, Evergreen//One has enabled us to move heavy CapEx costs to OpEx and save cash flow, making it much easier to predict and scale our business." – Tyler Bower, Founder, Cloud@Work

• "Sustainability has become a key pillar of IT strategies today, with an emphasis on reducing power and space to drive operational efficiencies and ultimately reach long-term ESG goals. By introducing an energy efficiency SLA into its storage-as-a-service offering, Evergreen//One, Pure Storage is providing an added and crucial layer of transparency for data storage, delivering a guaranteed measurement of actual Watts per TiB that will support a sustainable IT infrastructure." – Scott Sinclair, Practice Director, Infrastructure, Cloud and DevOps, Enterprise Strategy Group

• "Wipro is committed to collaborating with partners like Pure Storage to build innovative and sustainable solutions for organizations embarking on digital and sustainable transformation. We're excited to help joint customers gain a more sustainable technology footprint, help to achieve ongoing energy goals, as well as to contribute to their organization's overall impact." – Susan Kenniston, Global Head of Sustainability Domain & Consulting, Wipro Limited

Learn More:

• Evergreen//One
• Blog: Evergreen//One (Energy) Efficiency SLA

About Pure Storage
Pure Storage (NYSE: PSTG) uncomplicates data storage, forever. Pure delivers a cloud experience that empowers every organization to get the most from their data while reducing the complexity and expense of managing the infrastructure behind it. Pure's commitment to providing true storage as-a-service gives customers the agility to meet changing data needs at speed and scale, whether they are deploying traditional workloads, modern applications, containers, or more. Pure believes it can make a significant impact in reducing data center emissions worldwide through its environmental sustainability efforts, including designing products and solutions that enable customers to reduce their carbon and energy footprint. And with a certified customer satisfaction score in the top one percent of B2B companies, Pure's ever-expanding list of customers are among the happiest in the world. For more information, visit www.purestorage.com.

Analyst Recognition:
Leader in the 2022 Gartner Magic Quadrant for Primary Storage
Leader in the 2022 Gartner Magic Quadrant for Distributed File Systems & Object Storage

Connect with Pure
Blog
LinkedIn
Twitter
Facebook

Pure Storage, the Pure Storage P Logo, Evergreen, Evergreen//One, Evergreen//Flex, Evergreen//Forever, Pure1, and Portworx are trademarks or registered trademarks of Pure Storage Inc. in the U.S. and/or other countries. The Pure Storage Inc. Trademark List can be found at www.purestorage.com/legal/productenduserinfo.html.

View original content to download multimedia:https://www.prnewswire.com/news-releases/with-industry-first-energy-efficiency-guarantee-pure-storage-further-expands-sla-offerings-for-evergreenone-301722916.html

SOURCE Pure Storage

FAQ

What is the significance of Pure Storage surpassing $1 billion in ARR?

Pure Storage's achievement of over $1 billion in Annual Recurring Revenue (ARR) indicates strong customer adoption and growth in subscription services, marking a key milestone for the company.

What does the new energy efficiency SLA for Evergreen//One entail?

The energy efficiency SLA guarantees customers measurable Watts per TiB and includes service credits if targets are not met, promoting sustainable storage solutions.

What growth did Pure Storage report in subscription services revenue?

Pure Storage reported $244.8 million in subscription services revenue, reflecting a 30% increase year-over-year.

How has Pure Storage positioned itself in the enterprise storage market?

Pure Storage has positioned itself as a leader in the enterprise storage market, focusing on sustainability and innovation through offerings like the Evergreen Portfolio and the new energy efficiency SLA.