back to article Pure Storage the latest pipes 'n' plumbing playa to slash sales forecast

Pure Storage has clipped forecasts for its current fiscal year due to fears over the slowdown in corporate spending that is gripping other infrastructure outfits and a sharp decline in NAND prices. Revenue for Pure's Q2 of fiscal '20 ended 31 July was up 28 per cent year-on-year to $396.3m. Product sales brought in $300.1m, up …

  1. Wonder Dog

    It's not China it's the cloud

    The reason these pipe and plumbing companies are forecasting revenue drops isn't US v ChiCom trade wars... It's cloud hyperscalers taking the workloads. They can't ever say that though because it would indicate a far bigger and longer term issue for them.

    1. Hoosier Storage Guy

      Re: It's not China it's the cloud

      Disagree - the ODM sales have been down the past few quarters as well according to the IDC data.

      June 2019 - ODM down 5.3%: https://www.idc.com/getdoc.jsp?containerId=prUS45155319

      March 2019 - ODM down 1.5%: https://www.idc.com/getdoc.jsp?containerId=prUS44909519

    2. Equals42

      Re: It's not China it's the cloud

      Not likely. That's a known longterm trend but this looks to be a CapEx spend reduction or postponement by enterprises. Trade uncertainty, Trump's <cough> unhelpful economic statements on Twitter daily, and the signs of looming recession (already happening in manufacturing) in US, EU, and India showed large slowdown. Those things make large enterprises hold back CapEx spend. Might help cloud providers if OpEx moves forward with uncertainty but I can't see how a cloud spend that's locked in is better when looking at an uncertain next few quarters.

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