Shulou(Shulou.com)06/01 Report--

What this article shares with you is how to estimate the TAM of storage participable space. The editor thinks it is very practical, so I share it with you. I hope you can get something after reading this article. Let's take a look at it.

It's time to do BP at the end of the year.

Anyone who has done BP knows that you need to know the market space, or you will be called back by your boss.

So how to estimate the market space of the product?

We usually use TAM to represent the participable space. TAM is the abbreviation of Total addressable market, and some are called total available market. The term TAM is typically used to refer to revenue opportunities available for products and services.

Let's take a look at how Pure Storage, the AFA vendor of the successful IPO, makes the TAM estimate.

First of all, you need to get market spatial data from IDC to store related areas. Of course, you can also choose other companies, such as Gartner. However, IDC is the best at quantifying this piece of word-of-mouth, while Gartner's strength is the trend.

At first, Pure Storage focused on general storage product forms such as DAS, SAN, NAS, and storage software. DAS, SAN and NAS are hardware products. We see that in 2015, the global DAS market space is US $17.1 billion, SAN is US $18.2 billion, and NAS is US $6.6 billion. Hardware products, IDC is divided into different price grades (price band), different price band has different growth rates. There are different price band statistics in different forms. With these basic data, you can calculate the market space for each price band up to 2020. However, your own product certainly can't cover all price ranges, so pick out the shape and range in which you can compete, and then you can estimate the overall TAM.

The storage software part is relatively complex. In the IDC report, Pure Storage believes that their products can participate in the management of software, infrastructure software and replication software three major software categories, because the array provides the same functionality, can cover the space of these software.

According to this calculation, before IPO (2015), Pure Storage thought that the market space it could participate in, that is, TAM, was $24 billion. DAS they did not take into account, NAS at that time actually did not have a product, just a plan, so it was included. The area that can be covered as a whole, the part circled with red dotted lines in the image above.

But in the new year, 2016 after IPO, Pure Storage believes that the market space it can participate in, namely TAM, has expanded to US $35 billion. Why? Pure Storage gives several fixes:

1. Launch PB level / / M70, which can support larger-scale application integration.

2. Launch FlashStack integrated reference architecture with Cisco, which can compete with converged infrastructure and even super-converged systems.

3. Low-end launch / / M10, can participate in the competition of low-end price band

4. The launch of FlashBlade cluster NAS system can not only participate in the competition of NAS, but also participate in the competition of scale-out file and object market, the latter is an independent market segment in IDC, and the market space is up to 18.6 billion US dollars. Pure Storage believes that it can't participate in the super-large part of this piece (mainly public cloud scenarios), and it can participate in everything else.

5. DAS integration. FlashBlade and FlashArray,Pure Storage, which supports NVMe in the future, believe that both can seize part of the high-end DAS market.

Based on these five points, Pure Storage raised its TAM.

The main purpose of sharing the TAM estimation method of Pure Storage today is to give you an idea of how people do Marketing. At the same time, you can also refer to some market space data.

Solid-state storage (SSA) has been growing rapidly, and the figure above should be the forecast of Gartner.

Pure Storage also continues to maintain rapid growth, and Pure Storage collates the 16Q2 data provided by IDC (merging DELL's revenue into EMC) to come up with the above picture. We can see that in the global external storage market, Pure Storage ranks eighth, second only to Huawei. At Q1, Pure Storage once overtook Huawei. Of all the companies, Pure Storage has a growth rate of 80%, while Huawei has the second highest growth rate, but only 18%. If this continues, Pure Storage will soon enter TOP5 or even TOP 3.

In fact, Watermelon does not like Pure Storage very much, just two controls, not scale out, and it is acitv passive (at least the back end is). It feels very Low, but it makes it extremely easy to use, extremely efficient, and strong marketing ability, so it keeps growing rapidly. At present, it is said that its patent lawsuit has also been settled with EMC (accompanied by a sum of money), since then there is no patent trouble, plus scale-out all-flash NAS out, therefore, the later growth rate is estimated to be higher. However, it has been losing money, but as long as it can continue to burn money, it will be the biggest dark horse in the storage industry. However, Pure Storage seems to have little movement in China, but also, these parameters are basically impossible to bid in China, so Chinese companies do not seem to have OEM Pure Storage, but they can see OEM Nimble Storage.

The above is how to estimate the storage participable space with TAM. The editor believes that there are some knowledge points that we may see or use in our daily work. I hope you can learn more from this article. For more details, please follow the industry information channel.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.