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ExaGrid says ‘McDonald’s franchise’ go-to-market is clearly winning

ExaGrid says ‘McDonald’s franchise’ go-to-market is clearly winning

Data backup appliance vendor ExaGrid is reporting wider growth for its joint go-to-market with partners.

Overall, the company’s sales are said to be growing 15% a year, as the firm sees ever-more sales outside its established US market.

It is 100% focused on backup storage, with its software run on commodity hardware. While the firm is an appliance player, it emphasises its real secret sauce is in its patented software, which appropriately tiers customer data for efficient operations.

The company currently has 4,400 customers across over 80 countries, and runs its “scalable and repeatable” operations like a “McDonald’s franchise model”, it says.

“We have the same go-to-market model in every country. We outsource all manufacturing, and have no scale issues using mass market commodity components,” ExaGrid CEO Bill Andrews (pictured standing) told the recent IT Press Tour of Boston and Massachusetts.

The privately-owned Marlborough, MA-headquartered firm does all the post-sales support and installs itself remotely, to support “fast worldwide geographic expansion”.

Almost two-thirds (60%) of the time, ExaGrid competes in the market space involving primary storage behind the backup app, which sees it pitted against the likes of Dell primary storage, HPE Nimble and Apollo solutions, the NetApp eSeries, Pure Storage, IBM, Hitachi Vantara, and Huawei in a more limited number of markets.

A quarter of the time (25%), the vendor is involved in pitching for the supply of dedicated deduplication appliances, against solutions like Dell Data Domain, HPE StoreOnce, and Veritas Flex Scale.

For the rest of the time (15%), it is trying to replace the customer backup app, against the likes of Cohesity or Rubrik, for instance.

“We now have 220 staff in the sales organisation, with currently 30 open sales positions, and work with resellers worldwide to gain access to new customer accounts,” said Andrews. “We co-sell with resellers, while we do the remote install and support.”

Andrews claims ExaGrid is achieving a 70%-plus competitive win-rate overall against market rivals, with 45% of business now outside the US.

While inviting new partners to get onboard, he added: “We are currently growing at 15% a year, with a lot of headroom for further growth.”