Pure Storage reported a first-quarter loss and revenue on Monday that beat Wall Street expectations. But a weak second-quarter outlook pushed shares of the flash storage company down 7 percent on Tuesday
CEO Charles Giancarlo isn't too concerned about the setback, or behemoths, like Amazon, Google and Microsoft moving in on the cloud industry. In fact, he says giants entering the space actually drive business.
"It's been very good for us," Giancarlo said. "What these hyperscalers have done is create architectures that private companies want to use inside their own data centers. As they move to that, they move to much more modern storage technologies, like Pure."
Artificial intelligence — and the massive amount of data it requires — is also fueling business to companies like Pure, Giancarlo said.
"The interest in A.I. by corporations is just off the charts," Giancarlo said on CNBC's "Squawk Alley."
"At Pure, we are able to...feed GPUs, high speed applications, and A.I. environments — at the speed they want that data to provide the intelligence companies want to make their businesses better."
Since A.I. is all about crunching huge amounts of data, older, tiered storage systems that rank data by age aren't nimble enough to grant researchers quick access to even the oldest data sets, says Giancarlo.
"These days, people want access to data, whether it was last week or last year or last decade. And in order to do that, the data needs to be kept hot," Giancarlo said. "If you want to look at long term trends and data...you want to be able to mine it for more than a week or two."
Pure Storage is a flash storage company, founded in 2009 by John Hayes and John Colgrove. It made CNBC's Disruptor 50 list in 2014 and 2015.
