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  "documentTitle": "Pure Storage, Inc. (PSTG)",
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  "authorName": "Kerrisdale Capital",
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  "presentationDate": "2025-09-01 00:00:00",
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  "notes": "This slide serves as a detailed rebuttal of specific financial assumptions made by a competitor or target company.",
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      "text": "Compared to the Solidigm analysis, this would reduce annual HDD rack operating costs by over 90% from $3.1 million to $260K, or by over $28 million over ten years in their analysis, representing a material cost reduction.",
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      "text": "Management resources: As stated, we have excluded the cost of the VAST Data software (likely tens of millions of dollars based on estimates surrounding Pure’s software-only deal with Meta) and attempted to adjust our other Solidigm assumptions accordingly. Pure’s pricing obviously includes the embedded cost of its Purity operating software. Since this is required to run Pure AFAs, we include the fully loaded cost. While we acknowledge that the HDD and SSD scenarios require some analogous resource management overhead capability, we do not adjust the TCO analysis on the assumption that such firmware/software is preexisting in the hyperscaler technology stack, making the incremental cost immaterial.",
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      "text": "representative of high-cost areas and that average commercial rates are lower, and we suspect most hyperscaler data centers achieve closer to our figure. We disagree with Solidigm's assumption of a $5,000/month rack space cost since power and other equipment costs have been accounted for separately. Assuming 25 square feet per rack, construction amortization (for a $1,000/sq. ft. build cost), and other operating costs (at $150/sq. ft./year), we calculate an annual space cost of only about $5,000 per year. Compared to the Solidigm analysis, this would reduce annual HDD rack operating costs by over 90% from $3.1 million to $260K, or by over $28 million over ten years in their analysis, representing a material cost reduction. We ignore any other maintenance costs in our analysis. A traditional rule of thumb is that IT annual maintenance costs can total 3-8% of the upfront acquisition cost, the inclusion of which would severely penalize both flash alternatives, even assuming Pure’s DFMs come with three years of free maintenance.",
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