As we come to the end of 2015, I would like to note some of the major changes in the vendor landscape.
Hitachi Data Systems
For Hitachi Data Systems our big event in 2015 was Connect 2015. Hitachi Data Systems pulled together its sales, partners, analysts, leadership and select customers to connect them with the capabilities of our parent company Hitachi and give tangible credibility to our vision of Social Innovation. Social Innovation is the unifying strategy across all Hitachi companies that combines our rich Hitachi heritage in operational technology (OT) with Hitachi Data Systems domain expertise in information technology (IT), advanced data analytics and data infrastructure to deliver holistic solutions addressing an array of modern IT challenges in a number of industries. Hitachi Data Systems has announced several strategic acquisitions over the past year to bolster our Social Innovation and analytics portfolio – including Avrio, oXya, Pantascene and Pentaho – and is now well positioned to help data-driven public and private sector organizations extract deeper, more sophisticated insights and unlock greater value from their data. In April, Jack Domme became the CEO for Hitachi Americas in addition to his current position as CEO of Hitachi Data Systems. In his new role Jack has responsibility for Hitachi technologies in the Americas, including, automotive, power generation, etc.
A quote from Vernon Turner, senior vice president of Enterprise Systems and IDC Fellow for The Internet of Things sums our new direction: “Hitachi Data Systems is rapidly evolving to become more than just a storage company. They’re smartly driving better business and societal outcomes for their customers through the expansion of expertise and offerings that integrate the Internet of Things, operational technology, and machine-to-machine and data analytics, which are increasingly important to organizations in both the public and private sectors,”
The major event in the infrastructure market was the proposed acquisition of EMC by Dell, which is expected to complete in 2016 and raises questions about the future of VMware. Both VMware and EMC stock have fallen off since the announcement. Since Dell went private in 2013, it is hard to judge the impact on Dell.
HP went the other route splitting off it enterprise business from its PC business. HP also sold controlling interest in its Chinese server, storage, and technology assets to Tsinghua University, becoming the first major U.S. technology company to pass control to local owners since the government stepped up restrictions on foreign firms.
Super Bowl Fans over 40 may not remember who played on January 24, 1984, but many will remember this Super Bowl ad. A young lady athlete runs into an auditorium of mindless zombies listening to a talking face on a large computer screen. She is carrying a sledgehammer and is chased by riot police. She winds up and hurls the hammer, smashing the computer screen and the talking face. This was Apple’s brash way of introducing the Apple MAC to challenge IBM and there has been little love lost between them since the days of the PC. This year IBM and Apple announced their exclusive IBM MobileFirst for iOS agreement to bolster IBM’s cloud and mobile business. On the infrastructure side IBM has sold off their PC and X86 server business and even paid Global Foundries to take their chip business.
However, rumors of the demise of their mainframe business appear to be premature.
Amazon AWS turns a profit in 1Q2015 nine years after its official launch in 2006, showing that cloud is a viable business for public cloud providers. Analysts believe that every $1 of revenue for AWS, displaces $3 to $4 of traditional infrastructure spend. Now that AWS has become profitable, the pressure on traditional infrastructure vendors has increased.
The soaring tech valuations for storage in 2014 have tapered off in 2015. While BOX had soared 68% over it $14 initial IPO price in January, it currently trades at $13.19 as of Dec 15. Pure Storage opened below its IPO price of $17 and is currently at $17.27. Not a great year for storage IPOs.
Time to close the books on 2015 and look forward to a great new year. Thank you for reading my posts and your comments on social media. My best wishes to you and your loved ones in the coming new year.