back to article SimpliVity claims fivefold sales boost, hugs Cisco tightly

Things are looking up for hyperconverged vendor SimpliVity, which reported record growth in 2014 on the back of a number of strategic wins and a key partnership with Cisco. Simplivity is claiming a nearly 500 per cent increase in sales compared to 2013 and has now passed 400 employees worldwide, all of which makes me wonder …

  1. Anonymous Coward
    Anonymous Coward

    I smell bullshit...

    I know you are just reporting Simplivity's claims but 1500 cubes does in no way relate to 1500 customers because you at minimum always deploy them in pairs, so at most they would have 750 new customers in a year if everything was new business. And that is very hard to believe.

    And if it does end up being correct, where are all the reference cases and win reports on all those customers?

    Nah, I smell bullshit, and must agree on your assumption of them wanting to grab a quick IPO and run..

    1. Trevor_Pott Gold badge

      Re: I smell bullshit...

      1500 licenses...which is a really odd way to proclaim things. That's probably way the heck more than 1500 cubes. Even at SimpliVity's prices, 1500 individual cubes couldn't sustain that company's cash burn. That's why I am thinking they have between 1000 and 1500 customers, with some customers having multiple licenses (due to multiple locations/regions/etc). I am waiting to hear back from them on the exact details.

      1. Nate Amsden Silver badge

        Re: I smell bullshit...

        any idea what a license covers? (I sure don't have a clue) I would think they would advertise whichever number is biggest, so would not expect them to say 1,500 licenses if that covered 4,000 deployments or something.

        1. Trevor_Pott Gold badge

          Re: I smell bullshit...

          Not yet. Will update here when I know.

          1. Pancakes

            Re: I smell bullshit...

            Waiting for that update, Trevor...

            1. Trevor_Pott Gold badge

              Re: I smell bullshit...

              has been officially confirmed by the SimpliVity CEO to be 1500 units. Sorry it took so long.

  2. dan1980

    Buy!

    "Underdog grows into possible buyout target"

    A possible buyout target? The way things have been going the last few years, I suspect that being bought out is the very aim of the company. Well, perhaps not the company itself but most likely the investors.

    It takes time to build a company like this to start seeing real return of investment and a big IPO and investors generally want to see money far sooner so buyouts are a great option for them. The company itself is 5 years old but serious funding is about 3 years old now I think so in the next year or so, I'd expect the investors to want to start seeing that pay off.

    The pattern that has been repeated time and again for tech company 'startups' is one of massive injection of venture capital funds followed by fast expansion nationally and, after another round or two, globally. They are then snapped up for handsome sums by one of the existing large players who evidently find it easier to buy technology and market share rather than creating their own.

    So, they are definitely a buyout target - the question is who.

    In a way, it's like draft time in the various codes, where professional analysts and avid amateurs map out which rookies will be snapped up by which club, matching the needs and the talents - often with uncanny accuracy. You see the tech equivalent often in these pages, saying that such and such a company doesn't have a developed (e.g.) de-duplication technology* so will be looking to acquire some company or other to add this functionality in.

    And happy new year mate.

    * - As was the case with Kempel's previous company, Diligent, which was bought by IBM for their dedupe tech.

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