back to article Software is eating the world – and Nutanix's hardware revenues

Nutanix wants be seen as a sexy software business and not a hardware appliance biz stuck with crap commodity hardware margins. So it is changing its business mode to position itself as a software-focused company. Senior Wells Fargo analyst Aaron Rakers said the hyper-converged firm "currently sells hardware and software …

  1. Bill M

    "Nutanix wants be seen as a sexy software business"

    Have they thought about setting up a porno web site ?

    Surely there must be a deviant sexual proclivity nicknamed "Nutanix".

  2. Anonymous Coward
    Anonymous Coward

    Cloud computing a new target for litigation

    'As Cloud IPQ will continue to demonstrate, a growing but often overlooked trend of NPE patent litigations against cloud computing providers .. The lawsuits target both cloud computing providers (e.g., Nexon, Blackboard, Netsuite, Nutanix, etc.) and users (e.g., Riot Games, AthenaHealth, H&R Block, etc.).'

  3. Anonymous Coward
    Anonymous Coward

    What happens to existing install base ?

    While companies makes such moves it makes me wonder what will a customer think.

    There are tons of their Appliance model lying around who bought their vision. Now what ? Who supports the so called "commodity hardware" ?

    It seems they are under pressure from board members to show profit unlike others like Pure, Tintri etc.

    Also. Will they continue to brand their hypervisor free ?? Come on even donkey knows nothing comes for free in this world. Support?? Future development???

    Interesting time ahead....

    1. Anonymous Coward
      Anonymous Coward

      Re: What happens to existing install base ?

      Nutanix will continue to sell NX (aka "supermicro") hardware platform. However, sales teams will not get compensated for it. So, there will no longer be a benefit to selling it versus selling on Dell, IBM, HP, etc.

      But, Supermicro, just like Dell and Lenovo, is still a viable and productive OEM and it will continue. So, no worry in that platform going away.

      It's not that Nutanix is under pressure from the likes of Tintri, Pure, etc. Just the opposite: Nutanix never required proprietary h/w and this is the next logical move for them to from offering their own generic h/w to software-only like a VMware, or Microsoft.

      Finally, there is no value in charging for the hypervisor. Hypervisors are generic and the only company charging is VMware and that is due to their market saturation. They can get away with it but not forever. Customers are looking for ways to save money and not charging for that is one way. Their "payload" (all the additional features that come along with the hypervisor that customers don't necessarily need) is huge and fat. Customers are tired of paying a "vTax" and are looking to get cheaper. Microsoft has pushed hard and deep into public sector accts by not charging for their hypervisor. Unfortunately, in order to use their cloud (Azure), they are requiring customers use Hyper-V. Not a smart move IMO.

  4. registered-on-register

    and when the last company has moved to „software-centric“ and „cloud“, they will find out that their stuff still requires metal to run...

  5. Anonymous Coward
    Anonymous Coward

    if their software first approach is so confident they will stop paying their reps on HW related sales.... i find that unprecedented for a mainstream storage vendor, is it not? There have been SW only plays before but never really seemed to make it into the mainstream. There are always issues with performing/supporting reliably when you don't control the whole integrated platform. Makes sense. if they can offer the same product irregardless of the customers approved choice of HW and fully become a software defined storage company - major kudos.

  6. Anonymous Coward
    Anonymous Coward

    Poor customers and AM's

    Hope the AM's get a massive quote reduction, in my region hardware sales are a very large part of the Nutanix revenue.

    Pity those customer that have bought the hardware recently.

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