The All Flash Storage Market – Sugar-Coated?

by Mark Zeller  |   in Blog, Latest News  |   0 Comment

Confession time – I love Captain Crunch!

While eating breakfast the other day, I started reading the ingredients on the cereal box.  As you may be aware, the ingredients are listed in the order of greatest volume to the least. Aside from reminding me how much sugar I was consuming, this made me think of an analogy regarding the current state of All Flash Storage. 

At X-IO Technologies, we’ve just launched a new All Flash Storage Array. It is priced a guaranteed 40% lower than any of the perceived industry leaders.  You’re reading that right – 40% lower guaranteed – but how is that possible? Does X-IO know something about All Flash storage that the rest of the industry doesn’t?  Has X-IO found some magic formula to make enterprise storage?

It isn’t magic – I wish it was. Magic would make life a lot easier. It really isn’t something that the rest of the storage industry have either. X-IO is just doing things the rest of the industry is afraid to do. Our competitors are playing the sugar-coated cereal game. Whereas we’re being bright and healthy without losing any of that great taste. Let me explain.

If you think of a vendor’s sales and marketing costs as sugars, and the other carbs (such as fiber) as the actual product cost.  Lastly, think of the protein and fats as R&D and support (don’t tell our support team I called them fat – they may not forgive me).  How a company puts this all together is the recipe and shows their priorities.  So, why does Captain Crunch use that formula?  Well, there’s a certain demographic of the market who crave sugar. Most know it’s not great for them but they still buy it (like me).  For others, it may come down to not reading the label of what they are buying.

Translate this to the All Flash Storage Market and all too often you are paying for the sugar (marketing & sales) and not the healthy stuff (R&D and Support).  Often these sugar-coated vendors are spending as much as $3 on sales and marketing for every $1 that a customer was paying them for products and support.

Is the sugar-coating worth the cost?

The question I would propose is why would you pay 40% more for an equivalent product? i.e. for a  sugar-coated product with little nutritional value? Now it may look nice, it may even taste better when you first take a bite. But, just like eating sugar and food coloring every morning, you know there will be consequences in the longer term.

At X-IO Technologies, not only is our recipe healthy but we have some great ingredients that keep the cost low. As I mentioned before, X-IO has introduced a new product. An All Flash Array that we know we can sell (healthily) at 40% below the industry leaders.

How can we do this?  By having a fantastically engineered core software base and we can get more from less hardware – read more on this over at The Register.  That, coupled with a balanced ingredients list (Engineering, R&D, Support, and Sales/Marketing) means we can beat the competition on price without compromising on both the viability of the company and our product, delivering affordability, reliability and simplicity – guaranteed!

To learn more about our healthy All Flash Storage – ISE 900 Series recently announced, sign up for an upcoming webinar or contact us regarding an upcoming project!

 

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