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According to a recent report, the global NAND Flash Memory market is expected to grow from $46.6 billion in 2020 to $85.36 billion by 2026 at a CAGR of 11%. Mountain View-based Pure Storage (NYSE: PSTG) recently reported its second-quarter results that surpassed market expectations.

Pure Storage’s Financials

Pure Storage’s second-quarter revenues grew 23% to $496.8 million, ahead of the market’s estimates by 5.48%. Adjusted EPS of $0.14 also beat analyst estimates of $0.05.

Subscription services revenue grew 31% to $171.9 million. Product revenues grew 19% to $324.9 million.

Pure Storage estimates third-quarter revenues to be $530 million, compared to the analyst estimate of $496.32 million.

Pure Storage’s Product Expansion

Recently, Pure Storage announced further expansion of its subscription services by switching pricing models to a consumption-based model. Pure realizes that customers prefer pay-as-you-go pricing models where they can keep their spending flexible and pay only on need basis. Customers expect the same cloud consumption model and experience irrespective of whether their solutions and infrastructure is on-premise, at the edge, or in the cloud. It is hoping to address this through its FlashStack as-a-Service capability and by releasing the Portworx Cloud Consumption pricing.

FlashStack as-a-Service allows customers to leverage Pure and Cisco’s AI-based software-defined infrastructure with flexible consumption economics. The software-defined modern data infrastructure integrates on-premise and multi-cloud landscapes. While being scalable and holistically managed, FlashStack delivers a full-stack solution for critical apps that is always-on and future-proof. It helps customers to slash deployment and administration time, costs, and risks.

Portworx allows customers to operate and scale their enterprise apps on any cloud or data center while maintaining performance, security, and data protection. Since cloud-native applications running on Kubernetes are highly dynamic, it becomes difficult to estimate the exact number of servers needed to run applications. This inability to estimate results in overprovisioning, and subsequently, higher costs. To address this challenge, Portworx introduced the flexibility to allow customers’ consumption of Portworx to match the demands of their applications. Instead of purchasing fixed licenses that could each be run on any single server, the new flexible pricing allows customers to purchase a number of hours that can be consumed at any rate throughout the year depending on the number of servers they need to run.

Pure Storage’s stock is trading at $24.06 with a market capitalization of $6.81 billion. It had touched a 52-week high of $29.53 in February and a 52-week low of $13.91 in September.