You say 70 percent of Scale Computing’s customers came directly from VMware. Why?
The question is, ‘Well, why are they looking for VMware alternatives?’ And that comes around to ‘Well, VMware is expensive.’ Expensive is sort of a generic term, but it’s expensive because when you’re only using 20 percent or 30 perfect of the features -- well, of course it’s expensive. You’re paying for 100 percent of the features but using 30 percent. That doesn’t seem right. And then there’s these other challenges.
Where Scale initially gained traction is -- and we embraced this wholeheartedly -- was among mid-market companies. That’s who initially was attracted to Scale. When you think about that mid-market customer, they stereotypically have smaller IT departments, less specialization within those IT departments, and when you look at our core strength in things like manufacturing and education, very often mid-market customers are managing multiple sites with a relatively small IT team.
Many of those elements now sound sort of in the direction of edge computing. The back of the grocery store has no IT people. Without realizing it at the time, the reason we were getting all these mid-market customers was because of the ease of use and our total value relative to what they needed of the solution. As edge computing has sort of come onto the scene, what’s happened is Scale now has much, much larger customers, Fortune 500 companies and so forth, when they’re deploying an edge-type environment. Which looks a lot like that local K-12 environment than the traditional data center.