To begin with, we wish all our readers a slightly delayed, but a very happy new year! We’re charging ahead with our plans for 2019, but wanted to take a quick minute to share some of our highlights from a very busy, and successful 2018. We had set some steep goals for ourselves, and are proud to say that we achieved every single one of them. Enjoy reading!
To kick off the new year of 2018, we announced our new partnership with Tech Data. The partnership allows Tech Data to provide supply chain, integration and product support services for our composable data platform solutions. This alliance was a strategic business model shift for us, combining software-defined storage technology with Tech Data’s product and supply chain expertise to deliver fully integrated hardware-software all-flash storage appliances at a disruptive industry price point. “This business model shift, enabled by our partnership with Tech Data, positions us to deliver the economics and flexible consumption models that cloud providers need with absolutely no compromises on our well-proven technology capability,” said Dani Golan, CEO, Kaminario.
At the end of January 2018 we announced our transition from a hardware storage business to a software only business model. With this announcement we launched our software-defined composable data platform, Kaminario Cloud FabricTM, a new software-defined storage offering. Cloud Fabric delivers software-defined agility with the proven technology capability and enterprise-class features that earned Kaminario K2 the highest ranking in three out of five use cases compared to 19 all-flash arrays evaluated in Gartner’s 2017 Critical Capabilities Report. “Cloud Fabric represents the next phase of Kaminario’s journey toward becoming a cloud software company,” said Dani Golan, CEO, Kaminario. “We see software-defined, composable infrastructure becoming the dominant storage paradigm for modern datacenters. Fixed storage array architectures no longer make sense in the era of the cloud.”
While attending MSPAlliance’s MSPWorld in March 2018 for the first time, we were awarded the highly coveted MSPWorld Cup Best Cloud Solution Award™. MSPAlliance and MSPWorld events are recognized worldwide as the premier gathering place for managed service providers (MSPs). This award recognizes technology enabling companies that have demonstrated consistent efforts to advance the cause of managed service providers across the globe by providing cutting edge technologies and solutions. “Kaminario is proud to have been recognized as the MSPWorld-Cup Best Cloud Solution,” said Josh Epstein, CMO, Kaminario. “We launched Kaminario Cloud Fabric to address the needs of the modern cloud-scale datacenter and the service providers that are building cloud-based businesses. We help build secure cloud solutions that provide better flexibility and economics than other vendors such as Amazon Web Services.”
We were recognized as a Leader in the Gartner 2018 Magic Quadrant for Solid-State Arrays, second year in a row for our ability to execute and completeness of vision. We also ranked the highest for analytics and high performance computing in the 2018 Gartner Critical Capabilities Report. Gartner Critical Capabilities documents are companion research notes to Gartner Magic Quadrants. As an essential companion to the Gartner Magic Quadrant, this methodology provides deeper insight into providers’ product and service offerings by extending the Magic Quadrant analysis. “Kaminario has always been focused on product innovation and developing capabilities that help customers quickly adopt emerging technologies and new hardware to maintain their competitive edge,” said Eyal David, Chief Technology Officer, Kaminario. “We feel that this report underscores our commitment to building the best composable data platform in the industry and offers a seamless path to next generation NVMe-based datacenter infrastructure.”
In early August 2018, we announced our strategic collaboration with Western Digital. This collaboration is designed to deliver superior economics and greater flexibility for designing today’s cloud-scale datacenters. Our combined partnership/products deliver a NVMe/NVMf solution with the capability to dynamically compose, control, reconfigure and manage storage resources at the software layer using Kaminario Flex. This composable storage paradigm delivers the flexibility and economics of software-defined storage with the performance and enterprise-class data services of traditional shared storage. “This strategic collaboration with Western Digital allows us to deliver a new storage paradigm for the modern cloud infrastructure,” said Eyal David, chief technology officer, Kaminario. “As many players seek to emulate the efficiency and agility of hyperscale providers, this is an enormous market opportunity for hardware and storage providers to work together to deliver compelling solutions for next-generation datacenter infrastructure.”
After building on a successful technology collaboration with Western Digital, we were able to announce that we received a strategic investment from Western Digital Capital a few months later. “Kaminario’s vision for delivering highly flexible, composable storage solutions on NVMe/NVMf hardware aligns closely with Western Digital’s composable infrastructure strategy,” said Mark Long, president, Western Digital Capital. “Western Digital’s OpenFlex™ architecture and products enable the independent scaling of compute, storage and network resources and advanced orchestration through an open API. We look forward to working with Kaminario to advance SCI and software-defined solutions that improve scalability, flexibility and cost efficiency for cloud-scale data center customers.”
Last but not least, we announced growth of our topline software business by more than 55 percent during the first nine months of 2018, relative to the same time period in 2017. In addition, we had been operating with positive cash flow for the quarter ending Sept. 30, 2018. Our operating efficiency was aided by our adoption of a software-based business model that leverages our unique partnership with Tech Data. Our strong growth reflected our success in expanding our business with cloud scale datacenter operators, including software-as-a-service, consumer internet, and cloud service providers. “Kaminario has committed to a software business model and to transforming its go-to-market strategy with innovative partnerships that help us accelerate growth, while containing cost,” said Dani Golan, founder and CEO, Kaminario. “Reaching cash-flow positive is a milestone for Kaminario and will give us the ability to chart our own strategic path, while continuing to deliver unique value to our customers and partners.”
We hope you enjoyed reading our highlights. We’d like to thank our customers, partners, analysts and investors for all the collaboration through 2018, and look forward to setting an even higher bar in 2019.