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Nutanix Targets USD3 Billion by FY2021

Global hybrid cloud trend expected to boost company’s standings; Nutanix reinforces commitment in Asia with new Singapore HQ.

Enterprise cloud leader, Nutanix (NASDAQ: NTNX) recently launched its new Asia headquarter regional office in Singapore.

Located at Suntec, the office will be Nutanix’s flagship facility in the region and can host up to 120 staff to meet the company’s rapidly growing workforce to meet the brand’s skyrocketing preference as a dominant global player in the Hyper Converged Infrastructure (HCI) market.

Global CFO Duston Williams said, “Nutanix in Singapore marks another step in our ongoing commitment to the Asia Pacific where we are serving over 12,000 customers now”

USD3 Billion Target by FY2021

FY2018, Nutanix’s growth in the APJ region exceeded the growth of that in North America.

Duston said, “Overall, the company grew about 60% from the last financial year and is currently now a USD1 Billion organisation.

Since 1980 about 11,000 software companies that have gone public. Of this number, only 300 made it to USD100 million, 45 to USD1Billion and just 15 to USD3 Billion.

At the mid of FY2018, we have set a target to be a USD3 Billion company by FY2021. And consider this – we are such a young company, only starting to ship out products aggressively starting 2015.

As per IDC report for 2nd quarter of 2018, Nutanix and VMware have almost similar market share of about 34% of the global hyberconverged software; with the three other significant HCI players Dell, Cisco and HPE each having about 5% market share each.

Duston says, “In the cloud world, Nutanix an underdog compared to other more established brands who have much more resources.

However the value proposition that Nutanix offers to enterprise customers – that to be able to reap the benefits of the public cloud using the same legacy Tier-3 infrastructure already invested in, that is really hard to resist.

Nutanix is about taking the private cloud, public – into a hybrid environment that is essentially cost effective, simple and fast to deploy.”

This is exactly Nutanix’s value proposition, which offers the ability for customers to manage and control their own infrastructure, while at the same public cloud experience of simplicity and easy (of use).”

Nutanix in Malaysia

n Malaysia,  Nutanix brand is really well known as an Enterprise Cloud player, with over 200 established customers from a diversity of sectors including the public, FSI & insurance and commercial sectors.

Supporting the company’s channel partnership model in Malaysia, PK shares that Nutanix’s distributors are ECS and Cloud Vision.

In a video interview with EnterpriseITNews, hPK Lim, Managing Director, Nutanix ASEAN says:-

Today, most (enterprise) customers prefer the public cloud experience, simply because it simple and easy, allowing them to focus on running their (business) application) without having to worry about the complexity of the (private) cloud infrastructure. This is exactly Nutanix’s value proposition, which offers the ability for customers to manage and control their own infrastructure, while at the same public cloud experience of simplicity and easy (of use).”

Overall in ASEAN, PK says that the Singapore and Thailand market experience the fastest growth. The Nutanix Singapore office brings its regional presence to 25 offices in 13 countries.

Full Software Strategy

It is well known that Nutanix is striving to be a full-software company in a strategy that saw a doubling down of Nutanix’s control over its branded hardware sales starting in FY2018, where the company allowed legacy hardware manufacturers to sell its hardware directly.

Analysts observed that this allowed Nutanix to eliminate a bulk of its hardware costs; that concurrently also resulting in a growth boost in software and support revenue.

Duston confirmed this observation saying, “Just in FY2017, 100% of Nutanix’s appliances-based (hardware) sales were still recognized, as compared to FY2018 of just less than 10%.

By Q12019, Nutanix expects 51% of its cloud revenue to come from the subscription-based model (versus the current dominant license-based model). In belief that subscription-based model is the way to go, Duston says, “…we are hoping to bring this figure up to over 70% revenue contribution over the next 3 to 4 quarters.”