SimpliVity, a leader in hyperconverged infrastructure that’s revolutionizing enterprise IT, today released first quarter results that demonstrate a surge in enterprise demand to run mission-critical applications on SimpliVity’s hyperconverged infrastructure, signaling the market’s transition to mainstream adoption—with SimpliVity at the helm. 

Compared to the first quarter of last year, SimpliVity has increased its total customers by 177% year over year with a repeat purchase rate of more than 30%, indicating the company’s continued leadership in this exploding market. The quarter was also fueled by SimpliVity’s largest enterprise transaction to date, a Fortune 50 financial services firm that chose SimpliVity after a thorough evaluation of all legacy and alternative hyperconvergence technologies, and will replace all legacy IT infrastructure and support all mission-critical applications on SimpliVity.

SimpliVity Continues Experiencing Stellar Win Rates Even as Legacy Vendors Enter Hyperconverged Market

Q1 2016 saw a lot of activity and product announcements within the hyperconverged infrastructure market, especially from legacy storage vendors who have been impacted by recent declines within the enterprise storage market. According to IDC’s Worldwide Enterprise Storage Systems tracker, Q4-2015 spending on total enterprise storage fell 2.2% during the final quarter of 2015. By contrast, SimpliVity and its partners win more than 80% of qualified opportunities against all competitors—legacy and converged—due to its more mature and advanced hyperconverged offering.

“SimpliVity’s immense investment in its foundational technologies – 6.5 years thus far – is paying off just as adoption of hyperconverged infrastructure is accelerating within large enterprises. Other hyperconvergence upstarts rushed into the market early on with limited capabilities, while the most recent entrants have hastily introduced products as the market has grown,” said Doron Kempel, CEO, SimpliVity. “SimpliVity, on the other hand, has industry-proven technology, supporting mission-critical applications in some of the largest companies in the world. Our early investment allowed us to deliver a more complete offering to customers—providing all enterprise IT infrastructure, storage and data services, and giving SimpliVity the ability to transform customer data centers around the globe with support from a dedicated partner community.”

Fortune 50 Financial Services Firm Transforms its Enterprise IT with SimpliVity and Cisco UCS

A financial organization named by Forbes as one of the world's top hundred most valuable brands turned to SimpliVity to drive down $100 million in IT infrastructure and operational costs, consolidating six current data centers down to just three—all built from the ground up. SimpliVity’s OmniStack Integrated Solution with Cisco UCS will completely transform its data center, running 100% of workloads, including all mission-critical applications and SimpliVity’s built-in data protection. The hyperconverged solution will also provide cost-effective application deployment while reducing its data center footprint.

With about 1,000 Cisco systems deployed across hundreds of customers, SimpliVity is the No. 1 deployed hyperconvergence vendor for Cisco UCS. Additional OmniStack customers for Cisco UCS include some of the largest organizations in the world, such as a top five global insurance company, a worldwide media company, and one of the three military departments of the US Department of Defense.

SimpliVity Demand Surges for Hyperconvergence in the Enterprise

SimpliVity saw a steady increase in million dollar deals and traction with Fortune 500 and Global 2000 enterprises, as they want proven, industry-leading solutions to support mission-critical applications. The average deal size for OmniStack for Cisco UCS Servers and Lenovo System x grew by 43% quarter over quarter and momentum continues to build. An April 2016 IDC White Paper, sponsored by SimpliVity^*, highlighted why some enterprise customers are rapidly switching to SimpliVity—the company’s hyperconverged infrastructure increases operational efficiency, freeing enterprise IT resources to focus on business innovation. In fact, the IDC study revealed that customers increased the time spent on innovation and new projects from 16% to 29%—the equivalent of an 81% increase.

“As OpEx costs continue to rise, companies around the world are investing in technologies that can reduce the overall spend and allow them to refocus funds on driving business outcomes rather than maintaining the status quo,” said Eric Sheppard, Research Director, IDC Corp. “Our recent survey of SimpliVity customers tells us that the company’s hyperconverged solutions are helping to solve these very challenges by reducing complexity and combining many IT functions into one solution.”

Additional Q1 2016 milestones include:

• Customer satisfaction and returning customers: After announcing new enterprise-grade support services, SimpliVity reported an overall customer CSAT rating of 9.5 out of 10.
• Channel program expansion: SimpliVity also rolled out the PartnerAdvantage program in several new countries: Argentina, Ecuador, Guadeloupe, Uganda, and Zambia, grew the number of partner reps trained on SimpliVity’s solutions, and hired Geoff Fancher as VP of North American Channels, who brings more than 30 years of technology experience to his role.
• Partners become more seasoned with selling SimpliVity: SimpliVity’s 100% dedication to the channel continues to pay off as the company saw growth in overall partner productivity. The number of partners that have won opportunities with SimpliVity on a repeated, consistent basis increased by 55% quarter over quarter.
• Global go to market reach: SimpliVity’s global market coverage includes more than 90 territories across the globe, with about half in North America and the rest in Europe, the Middle East, Africa, Asia-Pacific, and Japan.