Good morning – My name is Marc Sultzbaugh You can rest your brains now it is time for sales !
We continue to expand our global footprint to increase our ability to build Mellanox brand and have direct touch with our customers.
We have multiple ways we drive sales to our customers – first we have direct sales to OEMs, value added resellers and distributors, in addition we find great value in direct touch with key end users in our target verticle markets. Our relationships with the ultimate consumers of our products allows us to understand how we enable their business, as well as create pull for Mellanox solutions thru our partners.
So what are the macro factors we see in our key markets that will drive our growth in the coming quarters.First within the HPC market we continue to maintain dominate market share and see growth of Mellanox FDR as % of deployments. Our customers are already working with us on the next wave of supercomputers using EDR/100Gb in 2H of 2014 and into 2015. In addition, we see growth WW in hyperscale systems driven by national competitiveness, national security, the huge requirements of search, social media and the move to cloud for compute and storage.Our second largest market today is in Storage and appliances. Here we continue to see strong growth in both revenue and design wins. – new customers like Teradata are moving us into more and more enterprise datacenters, and new design wins at customers like EMC, NetApp and IBM, reinforce Mellanox as the leader in embedded storage fabrics.
We see additional drivers for us around the growth in Big data, data analytics, and general infrastructure updates by governments world wide. There are significant changes taking place in the ethernet switch market that provides a tremendous opportunity for us.Similar to other areas of the datacenter - customers are looking for alternatives to proprietary software stacks and the need for much better price performance than is available from traditional suppliers. So trends around Open Stack, and Software Defined Networks will be catylsts for new growth for Mellanox.
As we look at our opportunities by region - One of the most important factors in Mellanox success is the tremendous customer base we have. We are strategic to the T1 providers of server, storage and interconnect, and we are aligned with their initiatives around building solutions for hyperscale, cloud, big data and storage.
Asia Pacific provides us with the biggest upside in the coming quarters and we are investing in our sales and support channels to capitalize. One of the biggest drivers is the move of ODM’s like Quanta and Asus to become direct OEM suppliers to the web and cloud providers, in addition we see Huawei moving aggressively into the data center. These and others will be significant customers for us in the near future
In EMEA we are seeing strong signs of recovery, but especially in Russia, Germany and UK. We expect large HPC deployments in 2014/2015, and new opportunities in service providers.
As we have discussed one of the largest greenfield growth opportunities for Mellanox is in the ethernet switch market. We see many factors driving customers to deploy with Mellanox. I want to show you a few of the early adopters and why we win.The first is an research cloud in Asia Pac – key requirements were single network for compute storage and network, second was for high BW fabric with the ability to support wide variety of applications, finally customer preferred open source software stacks. Why did we win - Mellanox VPI capability, which enables the customer to configure the fabric for either Infiniband or ethernet depending on the workload was a key differentiator, in addition our leadership in driving open stack was a critical benefit, it was an very competitive and strategic opportunity and with our partner Dell were able to win against Cisco UCS offering
Next a large scale web2.0 and cloud provider in Asia, Here the customer knew they needed more that 10Ge, but the cost from current suppliers Arista and Cisco was way too expensive in both capex and opex.Mellanox ability to support end to end 40Gbe with a highly scalable solution and un precedented price/performance along with direct working relationship with the end customer allowed us to win what we believe will be a long term high growth light house customer.
Finally – a large research institute that had huge bottle neck to their storage even at 10GbE. Again they wanted to move to 40Ge but could not find the density and price points needed.With our Virtual Modular Switch and non-blocking TOR we were able to provide non blocking high BW e2e solution that beat out both Arista and Brocade.
So in summary why Mellanox – we are clearly in the heart of the macro drivers around explosion of data, – Mellanox interconnect solutions provide differentiation and unique price/performance that provide customers with much better ROI.Our ability to deliver e2e allows our customers to accelerate their time to market, and ensures a better customer experienceBeing vertically integrated – allows us to provide customers with a flexible engagement model, in ensures we control our own destiny, and customers appreciate and understand our level of expertise to solve any issues.Whilte we are certainly on the radar of large competitors who we do not take lightly, however we are fortunate to have customers that view Mellanox as a strategic alternative to ensure they have choices.
Mellanox's Sales Strategy
Mellanox’s Sales Strategy
Marc Sultzbaugh – SVP of Worldwide Sales
October 25, 2013