Pure Storage shares latest insights on China business development trends and outlook for 2023

Pure Storage shares latest insights on China business development trends and outlook for 2023

December 21, 2022, China - Pure Storage® (NYSE: PSTG), a global IT pioneer that provides advanced data storage technology and services for multi-cloud environments, recently shared the latest insights into the development of Pure Storage's business in China and the industry outlook for 2023. Looking at the global business situation, Pure Storage continues to maintain a steady growth momentum. In the third quarter of this fiscal year, as of November 6, 2022, Pure Storage's overall revenue reached US$676 million, a year-on-year increase of 20%, of which subscription service revenue was US$245 million, a year-on-year increase of 30%.

In China, Pure Storage continues to demonstrate excellent execution in strategic practice, spares no effort to create the most advanced, reliable and energy-efficient technology products, and strives to meet customers' mission-critical data storage and management needs. Its solid performance in continuously surpassing and leading the market has proven its strength. IDC's third quarter 2022 global enterprise storage system quarterly tracking report shows that Pure achieved a 39.8% growth, while China's overall market growth rate reached 5.8%.

“Our Chinese customers are turning to technology to transform their businesses and ensure they are more resilient than ever before to meet new challenges in 2023. Not only that, their awareness of environmental sustainability is also growing. Pure Storage is well-positioned to meet our customers’ needs with data technology, helping them modernize their IT infrastructure in a more environmentally friendly way,” said Chua Hock Leng, regional vice president, ASEAN and Greater China, Pure Storage.

Outlook for 2023

Pure also shared insights into the outlook for 2023. "In today's market, the risks of inflation and recession are increasing. Issues such as enhancing resilience, reducing total cost of ownership and optimizing resources must be put on the agenda of enterprises. This will inevitably affect the development trend of regional technology investment." said Andrew Ho, technical director of Pure Storage Greater China.

Trend 1: 2023 will be the year of density for flash storage

As advances in flash technology, such as QLC (quad-level cell) and DirectFlash, are reducing the cost of flash and increasing its density, many companies are beginning to adopt flash to replace existing traditional hard disk storage. As environmental sustainability scrutiny becomes more stringent, companies will gradually abandon traditional hard disks and turn to flash technology to save energy and space. In 2023, Pure Storage expects the density of flash technology to leap forward, making it more suitable for Tier 2 and even Tier 3 workloads.

Trend 2: Anywhere Service Economy will become more and more prosperous

Influenced by cultural shifts within companies, especially those that rely on external investors, IT investment will accelerate in 2023 to flexible consumption models, such as subscriptions or pay-as-you-grow models. Investors and directors will increasingly favor companies that do not hold large amounts of capital assets, as these companies have the financial flexibility to invest in more strategic business areas, which will also enable the ubiquitous service economy to expand further in 2023.

Trend 3: Manufacturing processes will be redesigned to mitigate the harm caused by supply chain disruptions

As supply chain issues persist due to geopolitical tensions, companies will be forced to reconsider whether their software development/product engineering cycles need to be adjusted. This will prompt companies to consider a more modular approach that allows them to reuse and repurpose standard components. This approach can provide greater flexibility to complete project pushes in the event of supply chain disruptions while avoiding duplication of work in the software development lifecycle. Companies can effectively reduce supply chain risks and enhance their resilience by realigning software development and product engineering processes to incorporate part reusability.

Trend 4: ESG accountability will extend from the boardroom to the corporate

For most companies, the importance of ESG will continue to grow, but the focus will be refocused on accountability and practical actions. Governments are developing policies and tax regulations to limit carbon emissions, and companies will need to comply with new standards. Investors, partners and consumers will increasingly decide whether to trust and support companies based on ESG practices and performance. As stakeholders demand ESG integrity, there is continued pressure to drive transformation across the entire enterprise, including ESG strategy and reporting. At the same time, the focus on social and governance aspects of ESG continues to increase, not only to meet regulations, but also to meet the expectations of customers, partners and employees.

Trend 5: Data security will shift to rapid recovery capabilities

Security threats have gone beyond ransomware. Even if victims pay ransom to attackers, they may not be able to successfully extract and restore data. In 2023, hackers will change their strategy from simply locking data for ransom to directly stealing. Relying on cybersecurity insurance policies as a safety net of last resort can no longer provide adequate data protection. Enterprises will tend to adopt a "safer data" approach, using a unified fast file and object storage platform as the last line of defense against ransomware or unscrupulous employees within the enterprise, providing rapid recovery for the enterprise.

Trend 6: The topic of container adoption of nano services will increase in 2023

As adoption of containers and microservices increases, nanoservices will become more of a topic in 2023. Nanoservices are designed for single-function applications and are even simpler to run than microservices. For example, a news site might use a nanoservice to publish headlines or get weather data.