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Subject:  Re: Why I sold Pivotal (PVTL) Date:  6/20/2018  11:25 AM
Author:  DreamerDad Number:  43040 of 71977

I'm mainly posting this to add my thoughts (non-expert thoughts) to the discussion. Hope someone convinces me to get back in.



I just bought back in on the down day yesterday. Had similar concerns on customer acquisition, but i think those are outweighed by the (relatively) early phase of the multi-cloud PaaS cycle we are in. Large enterprises dont move quickly on major shifts, due to existing investments and fact that humans dont want to be fired when something goes wrong. So they dip toes in and then expand as it is validated to work. The more other customers serve as successful case studies, the more the other large enterprises move forward. This is another human effect of not wanting the boss to ask why you arent using the innovative thing that their competition has leveraged to get ahead.

I am dumbing this down more due to time constraints, but the other piece is in how this is sold. A direct sales force can only do so much. With Accenture pushing Pivotal aggressively and other channel partners doing the same, it greatly accelerates the sales activity.

Many IT VARs/SI's are more and more focused on services. Servers and storage and networking hardware has continually become more commoditized, squeezing margins. You can get credit for selling software and cloud subscriptions, but there is no hardware sales to be had in the public cloud game for a channel partner. So a huge focus on cloud services is and has been underway, and will only increase. West coast companies tend to be earlier adopters than more conservative midwest companies. You see this trend in things like hci and cloud. So there will also be an upswing in clients that are just more cautious in moving to multi-cloud and needing/benefitting from Pivotal.

Finally, i had to reply mostly because i disagreed with you on TTD, and that worked out pretty good. Color me superstitious. :)

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