Pivot3 Moves From Video to Hyperconvergance
Author: Brian Karas, Published on Mar 15, 2016
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Comments (17)
Undisclosed #1
Maybe Pivot4 would be more appropriate at this point.
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Gautham Gopalakrishna
Makes sense to pivot into a growing market?
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John Honovich
A note to Pivot3 and other manufacturers: We reach out for comment to give them an opportunity to put their strongest case forward. We may still write something negative but refusing to respond is a poor PR move.
If you respond, we will definitely run your response and it can help your supporters (or people skeptical about IPVM) believe what you are doing. Saying nothing deprives those people of that and strengthens the critical case.
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Steve Mitchell
"Hyperconvergence" is a crowded field where differentiation will be all about wowing them with fancy names for your own flavor of the software (virtualization management, etc).
The hardware is effectively commodity and software always wants to be free.
The winners are those with the biggest marketing budgets who can sell to CxO suckers that can't govern their technology with reference hardware and open source software that does all the same things at a fraction of the cost.
Pivot, raise money, repeat.
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John Honovich
The Register Sticks it to Pivot3:
IPVM evidently took it easy on Pivot3....
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Undisclosed Manufacturer #2
A year ago, Pivot3 was doing well in the Middle East / Gulf circuit for surveillance projects. But for the past few months haven't heard any chatter.
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Undisclosed Manufacturer #2
I believe that the Middle East will be a challenging market in years to come, primarily because of the oil money drying up. Saudi A and other GCC countries are running large budget deficits and borrowing money to keep pumping oil.
If OilPrice >= $95
Sell HighEndProduct(myBrand);
else
EnterTheDragon(boo);
The market is / was very brand conscious and is / was very "west" leaning rather than "east". There is significant price competition and like everywhere else, relationships do matter as well in closing large deals.
In the UAE, all brands have to be registered with the Police department. I think similar in other GCC member countries (Saudi A, Qatar, Oman, Kuwait Bahrain etc.). Qatar mandates 120 days of high resolution (1080p I think) storage. With the FIFA Soccer World Cup 2022 (if it ever happens there) stadium construction happening there, I believe there is / was a ton of business.
Anyone care to share the Middle East experience.
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Brian Karas
We spoke with Bruce Milne, Pivot3's CMO, who joined in November 2015. He disagrees with our assessment of Pivot3's position in the security industry. Surveillance is at least 50% of revenue, though slower growth rate than other areas.
He claims tripling of the sales and marketing team in the last 2 years though many of those employees come from the acquired company NextGen. He also said that surveillance specialist employees were flat.
Pivot3 expects to leverage their much larger sales and marketing team to reach new accounts. They will also target existing security accounts to upsell general IT storage.
The CMO also stated NexGen's all-flash performance oriented products are also expected to have applicability within the security market, though we are skeptical about the additional value of flash for video surveillance performance especially given the much higher cost of such solutions and the storage needs of video surveillance.
He stated Pivot3 is set to release an appliance at ISC West 2016 targeted at smaller applications. Years ago Pivot3 did offer a similar product, Minibank, which was then discontinued. We will be curious to see how the new product succeeds where the previous attempt failed, especially in the competitive space of small hardware appliances. We will analyze this product once available.
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Sergio Guzman
I just spoke with various vendors, and they seem to be under the impression that Pivot3 is 50% to 60% dependent on their security sales. I will be honest with you, the system has had some very good results here at my job for 4 years, but if you don't consider a fail-safe for when you need to update the system, their HCI system will not work for you. We are in the process of deciding if they will be part of our NVR refresh, or if we are going to just go with Seneca on a raid 10 solution.
They are definitely a cheaper solution.
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