Nutanix Stock

Nutanix, Inc. (Nutanix) provides a leading enterprise cloud platform, which it calls the Nutanix Cloud Platform that consists of software solutions and cloud services that power its customers’ enterprise infrastructure.

The company’s solutions deliver a consistent cloud operating model across edge, private-, hybrid- and multicloud environments for all applications and their data. The company’s solutions allow organizations to simply run and move their workloads, including enterprise applications, high-performance databases, end-user computing and virtual desktop infrastructure (VDI) services, container-based modern applications, and analytics applications, between on-premises and public clouds.

To give its customers even more choice, the company engineered its software solutions to run on a variety of server platforms, decoupling its software from its Nutanix-branded hardware appliances and powering a variety of on-premises private cloud deployments; a significant step in its transition from a hardware to a software company. The company continues to transform its software solutions into a comprehensive enterprise cloud platform, based on web-scale engineering principles and with a focus on automation and operational simplicity, which allows its customers to power nearly any scale IT deployment. The company’s customers primarily use its enterprise cloud platform to power their on-premises private cloud deployments, its solutions also simplify the complexities of multicloud environments with a single management console for automation, cost governance and compliance. The end result will be an enterprise cloud platform that empowers the company’s customers to unify operations, infrastructure and data services from the edge, to private cloud and public clouds, allowing IT to choose the right cloud for each application.

The company operates a subscription-based business model to provide its customers with the flexibility to choose the licensing that works best for them based on their specific business needs. A subscription-based business model means one in which the company’s products, including associated support and entitlement arrangements, are sold with a defined term.

The Nutanix Cloud Platform

Leveraging the foundation of the company’s core HCI technology, the Nutanix Cloud Platform delivers a rich set of products, solutions and services to enable its customers to simply run and manage their private cloud and, increasingly, their public and hybrid multicloud environments. The Nutanix Cloud Platform’s scale-out architecture, enterprise-grade data services and freedom of infrastructure choice enable customers to standardize on the Nutanix Cloud Platform as a single cloud platform to run a wide variety of their workloads ranging from end-user computing, VDI, enterprise applications, high-performance databases, and analytics applications to container-based modern applications, artificial intelligence (AI), machine learning (ML), and generative AI workloads.

INutanix Cloud Infrastructure (NCI) – The company’s offerings in hybrid cloud infrastructure combine its core HCI software stack (AOS), native, enterprise-grade hypervisor (AHV), virtual networking, disaster recovery, network and data security and Kubernetes container runtime.

AOS: AOS converges virtualization, storage, and networking services into a turnkey solution. AOS supports major hypervisors, including AHV and VMware ESXi, and uses software running across a scale-out cluster of servers to deliver advanced storage capabilities to all workloads running on the cluster. Building on a distributed data fabric, AOS enables robust enterprise storage services across multiple storage protocols. Storage capabilities include snapshots and cloning, performance acceleration capabilities, such as data locality and all flash optimizations, storage optimization, such as deduplication, compression and erasure coding, data protection and disaster recovery features, and data security with software-based data encryption. The company’s disaster recovery solutions include long distance data replication between multiple sites, advanced failover orchestration capabilities and support for metro high availability configurations, zero data loss synchronous replication and snapshot-based disaster recovery over any distance.

AHV: AHV is a native, enterprise-grade virtualization solution that is included with the company’s enterprise cloud platform with no additional software components to license, install or manage. AHV is built upon a widely-used open source hypervisor technology, known as KVM, and extends its base functionality to include additional features for storage performance and workload management, such as virtual machine high availability and live migration. AHV also includes features, such as flexible migrations, automated workload placement, security hardening, network virtualization, data protection, disaster recovery and rich analytics.

Flow Virtual Networking and Flow Network Security: Flow provides services to visualize the network, automate common network operations, build virtual private networks, and integrate with various third-party networking and security products. Flow Virtual Networking simplifies creation, isolation, and management of software defined networks (SDN) that connect applications running in the hybrid multicloud environments without manual configurations of physical networks. The company supplements these networking capabilities with application-centric, stateful, distributed firewall services based on advanced microsegmentation technology (Flow Network Security) that protect applications against internal and external threats.

Nutanix Kubernetes Engine: The company’s cloud infrastructure stack also provides for automated deployment and management of Kubernetes clusters to simplify the provisioning, operations and lifecycle management of cloud-native environments, containerized applications and microservices.

Nutanix Cloud Clusters (NC2): The company provides full automation to deploy its cloud infrastructure stack in public cloud environments like Amazon Web Services (AWS) and Microsoft Azure as NC2. NC2 provides ultimate flexibility for customers as just another deployment model for their NCI licenses, allowing them to take advantage of the elasticity of public cloud resources while maintaining the same operating model they have been accustomed to on-premises. Elastic disaster recovery, cloud bursting, site consolidation and cloud migration are typical NC2 use cases.

Nutanix Cloud Management (NCM): The company’s offerings in cloud management combine Intelligent Operations, Self-Service for infrastructure and applications, Cost Governance and Security Governance for the hybrid multicloud. Intelligent Operations provides critical capabilities such as integrated management, capacity planning, robust operational analytics, automated remediation, and one-click administration (previously known as Prism Pro/Ultimate). Self-Service provides automation services that streamline application lifecycle management, self-service provisioning for infrastructure and applications, and powerful hybrid multicloud orchestration. Cost Governance (previously known as Nutanix Beam) provides deep visibility, rich analytics and easy remediation across hybrid multicloud to optimize IT spend. Security Governance (also known as Security Central) enables monitoring, threat detection and remediation of real-time security vulnerabilities and compliance issues.

Nutanix Unified Storage (NUS): The company’s Unified Storage product offering includes scale-out storage services that consolidate management of structured and unstructured data. Nutanix customers can simplify storage operations, while delivering enterprise-grade Network File System (NFS) and Server Message Block (SMB) files services (Nutanix Files), as well as S3-compatible object services (Nutanix Objects), at nearly any scale. NUS can be enabled on a Nutanix HCI cluster next to virtualized workloads or can be deployed as a dedicated cluster, as a full replacement for traditional network files and object storage appliances. In addition to the scale and performance of NUS, the company further differentiates NUS with the same focus on simplicity and user experience that Nutanix is known for, as well as with complementary data security governance offerings, such as Nutanix Data Lens.

Nutanix Database Service (NDB): NDB provides automated database management to simplify database administration and to efficiently manage database copies that proliferate in most IT environments. NDB supports a variety of databases, both proprietary and open source, and can run both in the private datacenter and in public clouds through Nutanix Cloud Clusters. NDB is a foundational offering in line with the company’s longer-term vision to deliver a portfolio of data-centric platform services in the hybrid multicloud environment.

Delivery of Solutions

The Nutanix Cloud Platform can be deployed on-premises at the edge or in data centers, running on a variety of qualified hardware platforms, in popular public cloud environments, such as AWS and Microsoft Azure through Nutanix Cloud Clusters, or, in the case of the company’s cloud-based software and software-as-a-service (SaaS) offerings, via hosted service. Non-portable software licenses for the company’s platform are delivered or sold alongside configured-to-order appliances, with a license term equal to the life of the associated appliance. The company’s subscription term-based licenses are sold separately, or can also be sold alongside configured-to-order appliances. The company’s subscription term-based licenses typically have terms ranging from one to five years. The company’s cloud-based SaaS subscriptions have terms extending up to five years. Configured-to-order appliances, including its Nutanix-branded NX hardware line, can be purchased from one of its channel partners, original equipment manufacturers (OEMs) or, in limited cases, directly from Nutanix.

The company’s enterprise cloud platform typically includes one or more years of support and entitlements, which provides customers with the right to software upgrades and enhancements, as well as technical support. Purchases of term-based licenses and SaaS subscriptions have support and entitlements included within the subscription fees and are not sold separately. Purchases of non-portable software are typically accompanied by the purchase of separate support and entitlements.

Partners

The company has established relationships with its channel, OEM, ecosystem and cloud partners, all of which help to drive the sale and adoption of its solutions with its end customers. The company’s solutions can be purchased through one of its channel partners or OEMs.

Channel Partners: The company’s channel partners sell its solutions to end customers, and in certain cases, may also deliver its solutions to end customers through a managed or integrated offering. The company’s Elevate Partner Program simplifies engagement for its partner ecosystem using a consistent set of tools, resources, and marketing platforms. The company’s channel partners include distributors, resellers, managed service providers, telcos and global systems integrators. Arrow Electronics, Inc., a distributor to the company’s end customers, represented 32% of its total revenue for fiscal 2023. Tech Data Corporation, another distributor to the company’s end customers, represented 16% of its total revenue for fiscal 2023.

OEM Partners: The company’s OEM partners typically pre-install its software on hardware appliances and sell to end customers as an appliance. The company’s OEM partners can also sell its offerings as software-only to its end customers. Dell Technologies (Dell), Lenovo Group Ltd. (Lenovo), Fujitsu Technology Solutions GmbH (Fujitsu), and Hewlett Packard Enterprise (HPE) pre-install its software on their hardware to create the Dell XC Series, Lenovo Converged HX Series, Fujitsu XF Series, and HPE DX Series appliances, respectively. HPE also delivers the company’s software with HPE DX Series Servers as a service through the HPE GreenLake offering. Some of the company’s OEM partners also sell associated support offerings. The company announced a strategic partnership with Cisco Systems, Inc. (Cisco) to offer a hyperconverged solution that integrates Cisco's Unified Computing and Cisco Intersight with the Nutanix Cloud Platform.

Ecosystem Partners: The company has developed relationships with a broad range of leading technology companies that help it deliver world-class solutions to its customers. Through the Technology Alliance Partner arm of the company’s Elevate Partner Program, its developer, application, networking and security, data protection, hardware and infrastructure partners receive access to resources that allow them to validate and integrate their products with Nutanix solutions and engage in joint sales training and enablement. Such integrations enable a simpler deployment and consumption experience for the company’s customers in their environments and increases adoption of its enterprise cloud platform. The company has also developed and announced strategic technology partnerships that bring together best-in-class solutions across the ecosystem into integrated offerings and demonstrated interoperability and support for its customers, including partnerships with Red Hat, Inc., Citrix Systems, Inc., and Intel Corporation. In addition, the company works closely with its technology partners through co-marketing and lead-generation activities in an effort to broaden its marketing reach and help it win new customers while retaining existing ones.

Cloud Partners: The company’s partnerships with public cloud providers help it to realize its vision of a hybrid multicloud. The deployment of Nutanix Cloud Clusters on AWS extends the availability of the company’s core HCI software, along with all of its solutions, to bare metal Amazon Elastic Compute Cloud (EC2) instances on AWS. The company also has a partnership with Microsoft Corporation (Microsoft) to offer a hybrid cloud solution on Microsoft Azure by extending Nutanix Cloud Clusters to Azure environments.

Support Programs

Product Support: The company offers varying levels of software support to its customers based on their needs. The company also offers hardware support for customers who purchase the Nutanix-branded NX configured-to-order hardware appliances.

Professional Services: The company provides consulting and implementation services to customers through its professional services team for assessment, design, deployment and optimizing of their Nutanix environments. The company typically provides these services at the time of initial installation to help the customer with configuration and implementation.

End Customers

The company’s solutions serve a broad range of workloads, including enterprise applications, databases, virtual desktop infrastructure, unified communications, and big data analytics, and it supports both virtualized and container-based applications. The company has end customers across a broad range of industries, such as automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology, and telecommunications. The company also sells to service providers, who utilize its enterprise cloud platform to provide a variety of cloud-based services to their customers. The company had a broad and diverse base of over 24,000 end customers as of July 31, 2023, including approximately 1,020 Global 2000 enterprises. The company defines the number of end customers as the number of end customers for which it has received an order by the last day of the period, excluding partners to which it has sold products for their own demonstration purposes.

Growth Strategy

The key elements of the company’s growth strategy include continually innovate and maintain technology leadership; invest to acquire new end customers; continue to drive follow-on sales to existing end customers; enhanced focus on renewals; and deepen engagement with current channel, OEM, cloud and ecosystem partners and establish additional routes to market to enhance sales leverage.

Sales and Marketing

Sales: The company primarily engages its end customers through its global sales force who directly interact with key IT decision makers while also providing sales development, opportunity qualification and support to its channel partners. The company has established relationships with its channel partners, who represent many of the key resellers and distributors of data center infrastructure software and systems in each of the geographic regions where it operates. The company also engages its end customers through its OEM partners, which license its software and package it with their hardware and sell through their direct sales forces and channel partners.

Marketing: The company’s marketing team enables its global sales force and sales via its partner ecosystem. The company’s marketing focuses on educating its customers, prospects, partners, media and analysts, and influencers about the benefits and business outcomes its cloud software platform and solutions can deliver. The breadth of the company’s product portfolio allows it to engage multiple buyer and user personas across the organization, including senior executives, IT professionals, and developers. The company launched a modernized brand identity and new strategic narrative that highlights its evolution in corporate positioning from being the pioneer and a leader in HCI to now solving the market’s toughest challenges in operating hybrid multicloud environments. The company engages buyers through a variety of outbound and inbound marketing programs that include email, digital marketing, corporate and third-party events that generate customer and prospect awareness, including its annual user event .NEXT, in-person and virtual demand generation activities, social media outreach, media and analyst relations activities, learning certifications, community programs, platform test drives, thought leadership, and its website. The company’s robust community empowers customers and partners to share and discuss best practices for leveraging its solutions, as well as network with peers. Through its unified Elevate Partner Program, the company offers qualified partners access to market development funds, co-branded marketing campaigns, joint demand programs, and comprehensive learning paths.

Manufacturing

The Nutanix-branded NX series appliances, including those that are delivered by the company, are manufactured for it based on its specifications by Super Micro Computer, Inc. (Supermicro). Supermicro designs, assembles and tests the Nutanix-branded NX series appliances and it procures the components used in the NX series appliances directly from third-party suppliers.

Competition

The company’s main competitors fall into the following categories:

software providers, such as VMware, Inc. (VMware) (which has agreed to be acquired by Broadcom Inc.) that offer a broad range of virtualization, infrastructure and management products to build and operate enterprise and hybrid clouds;

providers of public cloud infrastructure and SaaS-based offerings, such as AWS, Google Cloud, Oracle Cloud, and Microsoft Azure; and

traditional IT systems vendors, such as Dell, HPE, Hitachi Data Systems (Hitachi), International Business Machines (IBM), Lenovo, Pure Storage, Inc. (Pure Storage), NetApp, Inc. (NetApp), and Huawei Technologies Co., Ltd. (Huawei) that offer integrated systems that include bundles of servers, storage and networking solutions, as well as a broad range of standalone server and storage products.

Intellectual Property

As of July 31, 2023, the company had 420 United States patents that have been issued and 205 non-provisional patent applications pending in the United States. The company’s issued U.S. patents expire between 2031 and 2041.

History

Nutanix, Inc. was founded in 2009. The company was incorporated in the state of Delaware in 2009.