As you might expect, we believe in the strength, resilience, and utility of platforms and we carefully watch as companies emerge and try to commercialize them. And like many industry observers, we have taken a desparate interest in the hyperconverged server-storage hybrid that was conceived of by the founders of Nutanix way back in 2009, which dropped out of stealth in 2011 and shipped its first product virtualizing both compute and storage a year later.

The word on the street – and that would be Wall Street we are talking about – is that Nutanix is “exploring a sale after receiving takeover interest,” and that private equity and industry players are either poking around or being shopped the idea.

Perhaps someone poked and a whole bunch of others are being shopped to get the best price possible. What we know is that Wall Street already owns Nutanix, which has been public since September 2016, and that it can be taken over by an aggressive buyer any time they want to take dump trucks full of cash down to Wall Street and start buying up shares.

This seems like an odd time for a third party to want to buy Nutanix, but a year ago it had a market capitalization in excess of $9 billion, which bottomed out at $3.1 billion back in June of this year. That market cap climbed back up to $5 billion before the acquisition rumors were swirling late last week, and as we go to press today it is kissing $6 billion. Just a few days of rumors added 20 percent to the asking price, and waiting only three months has doubled it.

That’s almost as bad as trying to buy a car these days. . . .

Anyway, if there is a deal in the works, it should have happened back in June and it is getting more expensive by the day for no good reason other than the fact that Nutanix has been able to rein in its losses somewhat in recent quarters and everybody seems to be expecting some sort of deal. This is a silly reason for the company’s stock to move so much, but that’s Wall Street for you. Or maybe it’s Numberwang. No, it’s definitely Numberwang….

If Nutanix actually made revenue grow and broke even for four consecutive quarters and was on the way to consistent profitability, that would be a good reason to be worth maybe $6 billion, especially for a company that has $1.32 billion in cash in the bank.

As you can see, the financials at Nutanix are improving, but it also looks like sales are getting a bit wiggly, and the company just laid off 4 percent of its workforce, too. Everyone is jumpy right now, and Nutanix is no exception, even with all of that cash in the bank.

In the trailing twelve months, Nutanix had $1.58 billion in sales, up 13.4 percent, and chopped its annual net loss by a quarter to $778 million. But that is still a huge loss, and there is no way to get around that. In the prior nine years that we have financial data, Nutanix has brought in $8.29 billion in revenues and booked a staggering $4.48 billion in losses.

Nutanix is a good company with a polished product that, as we have pointed out before, should be a platform akin to the DEC VAX of the 1980s, the IBM AS/400 of the 1990s, and the Microsoft Windows Server of the 2000s. Meaning, given so many small and medium businesses that want virtualized compute and storage that is resilient and easy to manage, and that can scale by just popping a few more servers onto the network, you would expect for Nutanix to have 200,000 customers – or maybe even 2 million customers – by now, not the 22,600 it ended its fourth quarter of fiscal 2022 with back in July.

For whatever reason – and we think it is simply the price of the Nutanix stack is too high even though the value is great for the kinds of customers for which this is most useful – the Nutanix base is smaller than we thought it would be and not growing very fast anymore.

The Nutanix customer base would be organizations with at least three servers running the normal set of infrastructure, all the way up to hundreds or thousands of nodes. Nutanix has been able to scale its hyperconverged infrastructure to thousands of nodes for years, and even has some customers that do that and that also spend millions of dollars per year on licenses and support. Which is why we cared about Nutanix at all. There was always a chance that this pyramid would be quite large and scale, in production, like many other distributed computing platforms we follow.

Nutanix also represented a polar opposite to the approach taken by the hyperscalers and cloud builders, who disaggregate storage from compute, using massive Clos networks running at Layer 2 of the network to interconnect everything together in a massive cluster spanning 50,000 to 100,000 nodes that offer reasonably deterministic performance. In the battle of hyperconverged compute and storage, with a shared hypervisor substrate running over Layer 2 networks, versus disaggregated compute and storage as embodied by Amazon Web Services, Google, Microsoft, and Facebook, it was not clear which one would win out in the enterprise.

Maybe the issue holding back Nutanix really is the price, and that means with the right cloud underneath it, that cloud can amortize that cost at the same time as giving their enterprise customers something that feels like their own private compute-storage cluster in the cloud. A new kind of logical partition, but at the cluster level, not a fractional node level.

Maybe one of the reasons why a lot of customers are still computing and storing on premises, at both small and large scale, is that the cloud is just too different. And maybe, just maybe, a big cloud – that means you, AWS, Microsoft, or Google – could take the Nutanix stack and add it as an overlay to their disaggregated infrastructure to supply customers not a hodgepodge of interlinked services, but something that looked and smelled and was secured like a distinct system. That might attract who knows how many tens of thousands to millions of customers to the cloud, pulling their infrastructure out of on premises datacenters. But only if that acquiring cloud took a very long view on how it was going to get all of that money back.

Nutanix might be a quick and dirty way to get a hybrid cloud setup going across enterprises, governments, and academic institutions, allowing them to run their Windows Server and Linux applications “as is” but on that virtualized server-storage substrate that makes it feel like a distinct system. They would probably pay a premium for such a comfort level – but almost certainly not what Nutanix is charging today. And that includes its ongoing transition from selling software licenses and support contracts to selling subscriptions that span multiple years.

But only a company with deep pockets in proprietary software, or advertising, or cloudy infrastructure (or a mix of these in some cases) can take that long view. And frankly, as thought experiments go, we admit this one is pretty weak. But so is the idea that some private equity firm is going to buy Nutanix for a premium over its current market cap and despite its limited growth and continuing losses, take a hatchet to the payroll, make it profitable, and then sell it for a 1.5X or 2X multiple of what they paid for it.

It can happen, and it might even happen, but that doesn’t mean it actually makes any sense. But maybe what we suggest above could make sense. Maybe.

Nutanix Inc., a major maker of software for managing cloud and on-premises infrastructure, is reportedly exploring a sale.

The Wall Street Journal today cited people familiar with the matter as saying that Nutanix began weighing a sale after receiving takeover interest. However, it’s reportedly “far from certain” that a sale will take place. 

The report didn’t specify the potential buyer or buyers who expressed interest in purchasing Nutanix. However, the Journal’s sources suggested that Nutanix may seek to secure bids from other prospective acquirers. The company is reportedly “expected to target” private equity firms, as well as fellow market players in the tech industry.

Nasdaq-traded Nutanix sells a collection of software products that organizations use to manage their compute, storage and network infrastructure. Nutanix’s software can be installed in public cloud environments to ease day-to-day maintenance tasks. The company also offers versions of its products that run on hyperconverged infrastructure appliances, which combine computer, storage and network equipment in a single chassis that companies can deploy on-premises.

Nutanix went public in 2016. In the years since, the company has expanded its focus to several new market segments. 

Nutanix in 2018 launched a service called Era that can help organizations manage their database deployments. In 2020, it debuted a managed Kubernetes platform that reduces the amount of manual work needed to operate software container environments.

One of the latest additions to the company’s product portfolio, Nutanix Data Lens, helps companies manage unstructured data. It enables administrators to centrally monitor how business records are used and detect potential ransomware attacks. The service also eases several other tasks, including the process of moving data stored on-premises to the cloud.

Nutanix generated revenue of $385.5 million in its most recent fiscal quarter ended July 31, significantly more than what analysts had expected. The company’s revenue guidance for the current quarter and its 2023 fiscal year surpassed expectations as well. Nutanix says its technology is used by more than 22,000 organizations worldwide.

According to the Journal, it’s believed that a potential sale would value Nutanix significantly higher than its Thursday market capitalization of about $5 billion. Today, shares of the company jumped more than 23% in trading on the report that it may be acquired. The steep share price jump suggests that investors also expect Nutanix to fetch a significant premium in any prospective acquisition.

The report of the potential acquisition comes amid an effort by the company to shift from selling software licenses to a subscription-centric business model. Nutanix reported that annual contract value bookings, a metric tied to subscription sales, grew 10% last quarter. Annual recurring revenue increased 37% year-over-year. 

Photo: Nutanix

Nutanix NTNX shares jumped 24.6% on Friday after the Wall Street Journal reported that the company is exploring its sale after receiving a takeover interest.

Citing sources familiar with the matter, the WSJ stated that the company is likely to aim at private equity and strategic buyers who are willing to pay a significant premium over its current valuation, which is around $5 billion. However, the deal stands uncertain amid the ongoing broader market sell-off in the United States.

Nutanix is considered a pioneer of the hyper-converged infrastructure (“HCI”) market, which is projected to grow rapidly in the long term. Gartner recognized the software maker as a 2022 Gartner Peer Insights Customers’ Choice vendor for HCI for the fourth time.

The strong adoption of Nutanix products and a high customer satisfaction rate are helping the company to expand its customer base. The company’s built-in hypervisor has been gaining significant traction as customers continue to select it as a low-cost alternative to other vendor offerings. Nutanix’s cloud-based deployment strategy is a differentiator. The company’s Xi Cloud Services is expected to challenge AWS, Microsoft Azure and Google Cloud in the infrastructure-as-a-service (IaaS) market.

Nutanix Price and Consensus

© Provided by Zacks.com Nutanix Price and Consensus

Nutanix price-consensus-chart | Nutanix Quote

Even though the company has been making losses since its inception, it is reporting narrower-than-expected losses. In fourth-quarter fiscal 2022, Nutanix reported a non-GAAP loss of 17 cents per share, narrower than the year-ago quarter’s loss of 26 cents per share.

Nutanix’s growing recurring revenue stream reflects customer loyalty to its solution portfolio, which improves the visibility of its revenue growth trajectory. During the latest quarterly release, the company added 620 new customers, bringing the total client number to 22,600. Further, the company’s transition to software-only sales is expected to significantly boost gross margin.

We believe that Nutanix’s remarkable transformation journey from a loss-making company to more of a high-growth recurring revenue-generating firm has made it a lucrative takeover target recently.

The company reported revenues of $1.58 billion in fiscal 2022. Subscriptions, Non-Portable Software, Hardware and Professional Services accounted for 91%, 3%, 0.4% and 6% of revenues, respectively. Further, Nutanix is a cash-rich company, which ensures that it can pursue strategic acquisitions and investments in growth initiatives. As of Jul 31, 2022, the company had cash, cash equivalents and short-term investments of nearly $1.32 billion.

Though most of the technology sector stocks have been hit hard due to several economic issues, including the Federal Reserve’s aggressive interest rate hikes, the Russia-Ukraine war-led energy crisis and the persistent inflation over the last year, Nutanix stands strong, despite being one of the most beaten-down stocks.

Shares of Nutanix have plunged 17.3% year to date. At Friday’s closing price of $26.35, the stock traded 29.1% lower than its 52-week high of $37.16 attained on Oct 22, 2021. NTNX currently trades at a forward 12-month price-to-sale multiple of 3.27, significantly lower than the five-year high of 8.16 as well as the Zacks IT Services industry’s average of 3.75.

The strength of Nutanix’s fundamentals and solid prospects, along with attractive valuations, is likely to have made the company a lucrative acquisition target.

Zacks Rank & Other Key Picks

Nutanix currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader Computer and Technology sector are Keysight Technologies KEYS, Digi International DGII and Baidu BIDU, each sporting a Zacks Rank #1 (Strong Buy), at present. You can see the complete list of today's Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Keysight's fourth-quarter fiscal 2022 earnings has been revised 10 cents north to $1.99 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 30 cents north to $7.47 per share in the past 60 days.

KEYS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 9.32%. Shares of the company have declined 25.3% over YTD.

The Zacks Consensus Estimate for Digi’s fourth-quarter fiscal 2022 earnings has increased by 2 cents to 42 cents per share over the past 60 days. For fiscal 2022, earnings estimates have moved 3.2% up to $1.61 per share in the past 30 days.

DGII's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 28.6%. Shares of the company have improved 32.2% over YTD.

The Zacks Consensus Estimate for Baidu's third-quarter 2022 earnings has been revised 46 cents southward to $2.51 per share over the past 60 days. For 2022, earnings estimates have moved 16.2% north to $9.16 per share in the past 60 days.

Baidu's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 58.1%. Shares of BIDU have slumped 32.6% over YTD.

To read this article on Zacks.com click here.

Nutanix Inc. shares rallied Friday following a report that the hyperconverged-infrastructure company is looking for a possible sale of the company.

Nutanix NTNX, +0.72% shares surged 24.6% to close at $26.35, near their intraday high, following a report by The Wall Street Journal that said the company is exploring a sale following recent takeover interest. That move just fell short of the stock’s recent best one-day performance of a 29% gain on Sept. 1. following a strong quarterly report and outlook. The last time shares closed north of $25 was in early May.

In the post-pandemic era, enterprises are looking for elasticity, agility and the ability to drive innovation without upfront investments. Given that organizations have an on-premises footprint for regulatory or data reasons, hybrid cloud has emerged as something of an ideal operating model.

Nutanix is meeting this need with its Nutanix Cloud Clusters on Azure. The solution makes it simple to extend on-prem Nutanix to any Microsoft Azure region by moving applications and workloads without refactoring or retooling, according to Thomas Cornely (pictured, left), senior vice president of product management at Nutanix Inc.

“What we do is we extend the Nutanix operating model to workloads running in Azure using the same core stack that you’re running on-premises,” he stated. “So once you have a cluster deployed in NC2 on Azure, it’s going to look like the same cluster that you might be running at the edge or in your own data center using the same tools, using the same admin.”

Cornely; Eric Lockard (pictured, right), corporate vice president of Azure Specialized Workloads at Microsoft; and Induprakas Keri (pictured, center), senior vice president of HCI and chief product security officer of Nutanix, spoke with theCUBE industry analyst Dave Vellante during a special broadcast, titled “Accelerate Hybrid Cloud With Nutanix and Microsoft.” They discussed how NC2 on Azure delivers an easy, secure and seamless hybrid cloud by offering the same performance, stack, automation, workflows and networking across on-prem and cloud environments.

In a separate interview, Alvaro Celis, vice president of global ISV commercial solutions at Microsoft, and Michal Lesiczka, vice president of the cloud and database partner ecosystem at Nutanix, spoke with theCUBE industry analyst Lisa Martin. They discussed the partnership between Nutanix and Microsoft and why hybrid cloud is a perfect fit for enhanced scalability, flexibility and app modernization. (* Disclosure below.)

Providing a consistent infrastructure and management plane

Not only does NC2 on Azure simplify cloud migration, but it also provides Elastic Disaster Recovery. As a result, the ultimate vision is to make the cloud journey easy without rewriting applications, as well as extending some of the cloud capabilities down to the on-prem infrastructure, according to Cornely.

“We’re doing on-premises IT disaster recovery and something that we refer to as Elastic Disaster Recovery, being able to go and actually configure a secondary site to protect your on-premises workloads,” he explained. “With investments that we’ve done together with Azure Arc, for example, we’re really extending the Azure control plane down onto on-premise Nutanix clusters and bringing the capabilities that provides to the Nutanix customer, as well as various Azure services like our data services and Azure SQL Server.”

NC2 on Azure takes the challenge of “remodeling” away because applications are shifted to the cloud as they are. This makes the cloud journey easier, given that enterprises are able to access Azure services from the same application running on an NC2 cluster, according to Keri.

“One of the things that you have done really well with the NC2 on Azure is that NC2 is not something that sits by Azure’s side; it’s fully integrated into the Azure Fabric, especially the software-defined networking, SDN piece,” he said. “Your management claim looks the same, your high-performance notes, the NVMe notes, they look the same.”

Despite the complexity of hybrid cloud, NC2 on Azure makes it simpler because a similar operating model is deployed at the edge, on-prem and in the public cloud. Furthermore, a lift-and-shift approach is employed, according to Cornely.

“We allow teams to go and basically have a solution that allows you to go and take any application running on-premises and move it as-is to any Azure region where NC2 is available,” he added.

Even though public cloud has a bunch of inherent advantages, such as being able to innovate without significant upfront costs, Lockard believes retaining some workloads on-prem is being driven by sovereignty and data-gravity reasons. As a result, the need for hybrid cloud becomes more pressing.

“There is a trend toward public cloud, but you know not everything can go to the cloud, especially right away,” he pointed out. “So, really, hybrid is the way to achieve the best of both worlds, really to kind of leverage the assets and investments that customers have on-premises but also take advantage of the cloud for bursting, originality or expansion, especially coming out of the pandemic.”

Since NC2 is an infrastructure layer, Keri believes it enhances and makes security and management easier through the company’s Prism solution, which provides an automated control plane that uses machine learning to support predictive analytics and automated data movement. Furthermore, it tackles the network complexity, because users are provided with a virtual private cloud.

“Down the road, if you have a containerized application, you’ll actually be able to take it from on-prem and run it on NC2,” Keri stated. “The NC2 offering itself is an infrastructure-level offering. And the trick is that the storage that you’re used to, the high-performance storage that defines Nutanix to begin with, the hypervisor that you’re used to, all of them are available to you on NC2 in Azure the same way that they used to do on-prem.”

Here’s the complete video interview with Thomas Cornely, Induprakas Keri and Eric Lockard:

An innovation journey: Doing more with less

Since the business context has significantly changed, especially in the post-pandemic era, enterprises have become conscious about cost and efficiency. NC2 on Azure accelerates the cloud journey, given that organizations have different amounts of pressure, priorities and imperatives, according to Celis.

“The Nutanix Cloud Clusters are often the fastest way on which customers will be able to do that journey into the cloud, because it’s very consistent with environments that they already know and use on-premise,” he noted. “And once they go into the cloud, then they have all the benefits of scale, agility, resiliency, security and cost benefits that they’re looking for.”

The foundation of the partnership between Nutanix and Microsoft has been customer centricity, Lesiczka pointed out, adding that this has been instrumental in enabling the hybrid cloud concept to see the light of day.

“We actually entered a partnership a couple years ago, so we’ve been working on this solution for quite a while,” he said. “But really our ultimate goal from day one was really to make our customers’ journeys to hybrid cloud simpler and faster. So really for both companies, I think our goal is being that trusted partner for our customers in their innovation journey.”

By combining the advanced capabilities of Nutanix and Microsoft, Lesiczka believes the silos between networking and computed storage are broken down. As a result, operations get simplified and Nutanix’s hyperconverged infrastructure has been instrumental in the materialization of hybrid cloud.

“If you look at Azure at Microsoft, they’re truly best-in-class cloud infrastructure with cutting-edge services and innovation and really global scale,” Lesiczka explained. “So when you think about those two combinations, that’s really powerful for customers to be able to take their applications — whether they’re on-prem, in the cloud or even at the edge — and really combining all those various hybrid scenarios.”

Value addition and delivering consistency is at the heart of the Nutanix-Microsoft partnership, according to Celis. As a result, scalability, performance, resilience and elasticity are benefits when utilizing hybrid cloud.

“When you see two companies coming together with the mission of empowering customers and with the customer at the center and trying to solve real problems — in this case, how to drive hybrid cloud and what is the best approach for them — opening more opportunities is extremely inspiring,” Celis said. “So how do we combine our capabilities between Nutanix and Microsoft to be sure that that hybrid cloud journey that everyone is going to take can be simplified?”

Since the North Star of the partnership is to continue to make it easy for enterprises to adopt, migrate and modernize their applications, Lesiczka believes NC2 on Azure has set the ball rolling. In fact, the preview of NC2 on Azure was oversubscribed, indicating a high demand for the product. Working from the customers backwards has also been an ideal stepping stone.

“Like you mentioned, we’ve had a great preview, oversubscribed,” Lesiczka noted. “We had lots of, not only customers, but also partners battle-testing the solution. We’ve been working with partners like TCS and Citrix, where they share the same goal as Microsoft and Nutanix. So they’re going to be leveraging NC2 on Azure to really provide those hybrid cloud experiences for their solutions, building on top of the work that we’ve done together.”

Here’s the complete video interview with Alvaro Celis and Michal Lesiczka:

And make sure to watch the complete “Accelerate Hybrid Cloud With Nutanix & Microsoft” event video below:

(* Disclosure: TheCUBE is a paid media partner for the “Accelerate Hybrid Cloud With Nutanix & Microsoft” event. Neither Nutanix Inc., the sponsor for theCUBE’s event coverage, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Image: SiliconANGLE

Customers Can Seamlessly Extend Nutanix Environment to Microsoft Azure

SAN JOSE, Calif., October 12, 2022--(BUSINESS WIRE)--Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced today the general availability of Nutanix Cloud Clusters (NC2) on Microsoft Azure, extending its hybrid cloud environment to Microsoft Azure dedicated bare metal nodes.

NC2 on Azure offers a seamless hyperconverged infrastructure and unified management spanning private and public cloud environments to accelerate hybrid cloud adoption. NC2 on Azure enables customers to deploy and manage their workloads in their own Azure account and VNet enabling them to keep the operating model simple and consistent between Azure and on-premises.

With license portability of Nutanix term-based software and the ability to leverage all Microsoft Azure benefits, NC2 on Azure provides customers the investment protection and choice to run their workloads in a hybrid cloud environment. NC2 on Azure is now generally available to customers on Azure dedicated bare metal nodes in North America Azure regions, with additional global Azure regions to follow in 2023.

"Organizations are embracing hybrid multicloud to easily scale from on-prem to the public cloud, optimize costs for performant and secure workloads, and tap into a flexible subscription model," said Rajiv Ramaswami, President and CEO of Nutanix. "NC2 on Azure gives our customers a frictionless on-ramp to Azure with consistent management of apps and data across their hybrid multicloud environment."

"While public cloud has solidified as a crucial investment for businesses, many customers need to run and manage workloads across public and private cloud environments," said Scott Guthrie, Executive Vice President, Cloud + AI Group, Microsoft. "NC2 on Azure provides consistent management for businesses’ infrastructure across on-premises and cloud, reduces network latency, and increases cost efficiency."

Story continues

Customers can now run workloads on NC2 on Azure and manage Azure instances from Nutanix's management interface. This enables customers to run hybrid workloads seamlessly across private clouds and Microsoft Azure without needing to re-architect their applications. The expected result is simplified and consistent IT operations across clouds, hybrid cloud adoption in hours, and lower total cost of ownership when compared to other cloud deployment solutions.

Customers can also take advantage of Azure Hybrid Benefit as well as Extended Security Updates to Excellerate cost, security, and efficiency. Nutanix customers will be able to port their existing term licenses to NC2 on Azure or get on-demand consumption of Nutanix software through the Azure Marketplace, enabling frictionless movement between private clouds and Microsoft Azure.

"Customers are struggling with the reality of managing workloads across private and public clouds, and this challenge is not going away," said Paul Nashawaty, Senior Analyst at The Enterprise Strategy Group. "This Nutanix and Azure solution addresses key challenges many enterprises are facing by providing unified management across clouds with applications, data and license portability."

Customers can leverage NC2 on Azure to:

• Simplify and optimize disaster recovery, eliminating the need to maintain a secondary site by utilizing Microsoft Azure's on-demand capacity for failover.

• Access on-demand capacity bursting to Microsoft Azure, rapidly scaling capacity while leveraging existing applications and tooling.

• Migrate and modernize their datacenters by easily moving their existing applications and data as-is without costly and time-consuming refactoring or retooling.

"As we strive to financially protect 39 million customers around the world with our products and services, we continue to see hybrid cloud as a key milestone in our digital transformation journey," said David Fitzgerald, Assistant Vice President of IT Delivery at Unum. "With NC2 on Azure, we are excited about leveraging a seamless hybrid cloud platform for disaster recovery as well as to migrate and run workloads in Azure to handle a myriad of hosting scenarios. We can now, on-demand, expand our Nutanix Cloud Platform to Azure regions without having to re-factor our applications. We look forward to continuing our strong partnership with Microsoft and Nutanix."

"TCS has a long track record of embracing technology innovations to satisfy customer demand and enable them to focus on business outcomes," said Dinanath Kholkar, SVP and Global Head of Partner Ecosystems & Alliances at TCS. "Microsoft Azure and Nutanix have been popular technology choices of TCS customers looking for digital transformation, and NC2 on Azure is an attractive option for us to help our customers extend and migrate their on-prem workloads into a cloud space more easily. The ability to rapidly deploy and burst workloads through NC2 on Azure is vital to our customer’s hybrid and multicloud strategy. TCS Microsoft Business Unit (MBU) is looking forward to taking this solution to our joint customers."

For more information on NC2 on Microsoft Azure, please visit: nutanix.com/azure

Supporting Materials

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making clouds invisible, freeing customers to focus on their business outcomes. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their hybrid multicloud environments. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2022 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This release may contain links to external websites that are not part of Nutanix.com. Nutanix does not control these sites and disclaims all responsibility for the content or accuracy of any external site. Our decision to link to an external site should not be considered an endorsement of any content on such a site. Certain information contained in this press release may relate to or be based on studies, publications, surveys and other data obtained from third-party sources and our own internal estimates and research. While we believe these third-party studies, publications, surveys and other data are reliable as of the date of this press release, they have not independently verified, and we make no representation as to the adequacy, fairness, accuracy, or completeness of any information obtained from third-party sources.

This release may contain express and implied forward-looking statements, which are not historical facts and are instead based on our current expectations, estimates and beliefs. The accuracy of such statements involves risks and uncertainties and depends upon future events, including those that may be beyond our control, and genuine results may differ materially and adversely from those anticipated or implied by such statements. Any forward-looking statements included herein speak only as of the date hereof and, except as required by law, we assume no obligation to update or otherwise revise any of such forward-looking statements to reflect subsequent events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221012005405/en/

Contacts

Nutanix
Gabrielle Moynan
pr@nutanix.com

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

Nutanix (NASDAQ:NTNX) stock is climbing over 18% in pre-market trading after The Wall Street Journal indicated that the company could be acquired. NTNX offers cloud services to businesses.

Another provider of cloud services, VMware (NYSE:VMW), agreed to be taken over by Broadcom (NASDAQ:AVGO) for $61 billion earlier this year.

More Information About the Potential Deal

A number of entities have told Nutanix that they would consider buying it, and NTNX is expected to look to sell itself to a private equity firm or another cloud infrastructure provider, The Journal reported, citing unnamed sources.

But an acquisition may very well not materialize the newspaper added, noting that the takeover price would be more than $5 billion, which is Nutanix’s current market capitalization.

An Analyst’s Prior Take on a Potential Takeover

After Nutanix announced changes to its governance rules earlier this month, Needham analyst Michael Cikos wrote on Oct. 3 that: “At best, we see [the] announcement as further opening the door to suitors as an acquisition candidate.” Among the potential acquirers of Nutanix are: private equity firm Bain Capital, Cisco (NASDAQ:CSCO), Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), and HP Enterprise (NYSE:HPE), the analyst stated.

Background on Nutanix and NTNX Stock

 Legion Partners Asset Management LLC, known as “an activist hedge fund,” has a stake of over 7% in NTNX, while private equity firm Bain Capital bought $750 million of Nutanix’s convertible notes in 2020.

In August, Nutanix reported significantly stronger-than-expected fiscal fourth-quarter results. However, the company’s revenue still fell 1.3% year-over-year, while it reported a loss per share of 67 cents.

On two positive notes, its annual contract value (ACV) billings climbed 27% YOY, while it generated a positive free cash flow of $23.2 million, versus a free cash flow loss of $42.2 million during the same period a year earlier.

On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

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Nutanix Inc. shares rallied Friday following a report that the hyperconverged-infrastructure company is looking for a possible sale of the company.

Nutanix shares surged 24.6% to close at $26.35, near their intraday high, following a report by The Wall Street Journal that said the company is exploring a sale following recent takeover interest. That move just fell short of the stock’s recent best one-day performance of a 29% gain on Sept. 1. following a strong quarterly report and outlook. The last time shares closed north of $25 was in early May.

San Jose, California – October 12, 2022 – Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, announced today the general availability of Nutanix Cloud Clusters (NC2) on Microsoft Azure, extending its hybrid cloud environment to Microsoft Azure dedicated bare metal nodes.

NC2 on Azure offers a seamless hyperconverged infrastructure and unified management spanning private and public cloud environments to accelerate hybrid cloud adoption. NC2 on Azure enables customers to deploy and manage their workloads in their own Azure account and VNet enabling them to keep the operating model simple and consistent between Azure and on-premises.

With license portability of Nutanix term-based software and the ability to leverage all Microsoft Azure benefits, NC2 on Azure provides customers the investment protection and choice to run their workloads in a hybrid cloud environment. NC2 on Azure is now generally available to customers on Azure dedicated bare metal nodes in North America Azure regions, with additional global Azure regions to follow in 2023.

“Organisations are embracing hybrid multicloud to easily scale from on-prem to the public cloud, optimise costs for performant and secure workloads, and tap into a flexible subscription model,” said Rajiv Ramaswami, President and CEO of Nutanix. “NC2 on Azure gives our customers a frictionless on-ramp to Azure with consistent management of apps and data across their hybrid multicloud environment.”

“While public cloud has solidified as a crucial investment for businesses, many customers need to run and manage workloads across public and private cloud environments,” said Scott Guthrie, Executive Vice President, Cloud + AI Group, Microsoft. “NC2 on Azure provides consistent management for businesses’ infrastructure across on-premises and cloud, reduces network latency, and increases cost efficiency.”

Customers can now run workloads on NC2 on Azure and manage Azure instances from Nutanix's management interface. This enables customers to run hybrid workloads seamlessly across private clouds and Microsoft Azure without needing to re-architect their applications. The expected result is simplified and consistent IT operations across clouds, hybrid cloud adoption in hours, and lower total cost of ownership when compared to other cloud deployment solutions.

Customers can also take advantage of Azure Hybrid Benefit as well as Extended Security Updates to Excellerate cost, security, and efficiency. Nutanix customers will be able to port their existing term licenses to NC2 on Azure or get on-demand consumption of Nutanix software through the Azure Marketplace, enabling frictionless movement between private clouds and Microsoft Azure.

“Customers are struggling with the reality of managing workloads across private and public clouds, and this challenge is not going away,” said Paul Nashawaty, Senior Analyst at The Enterprise Strategy Group. “This Nutanix and Azure solution addresses key challenges many enterprises are facing by providing unified management across clouds with applications, data and license portability.”

Customers can leverage NC2 on Azure to:

• Simplify and optimise disaster recovery, eliminating the need to maintain a secondary site by utilising Microsoft Azure's on-demand capacity for failover.
• Access on-demand capacity bursting to Microsoft Azure, rapidly scaling capacity while leveraging existing applications and tooling.
• Migrate and modernise their datacentres by easily moving their existing applications and data as-is without costly and time-consuming refactoring or retooling.

“As we strive to financially protect 39 million customers around the world with our products and services, we continue to see hybrid cloud as a key milestone in our digital transformation journey,” said David Fitzgerald, Assistant Vice President of IT Delivery at Unum. “With NC2 on Azure, we are excited about leveraging a seamless hybrid cloud platform for disaster recovery as well as to migrate and run workloads in Azure to handle a myriad of hosting scenarios. We can now, on-demand, expand our Nutanix Cloud Platform to Azure regions without having to re-factor our applications. We look forward to continuing our strong partnership with Microsoft and Nutanix.”

"TCS has a long track record of embracing technology innovations to satisfy customer demand and enable them to focus on business outcomes,” said Dinanath Kholkar, SVP and Global Head of Partner Ecosystems & Alliances at TCS. “Microsoft Azure and Nutanix have been popular technology choices of TCS customers looking for digital transformation, and NC2 on Azure is an attractive option for us to help our customers extend and migrate their on-prem workloads into a cloud space more easily. The ability to rapidly deploy and burst workloads through NC2 on Azure is vital to our customer’s hybrid and multicloud strategy.” Dina added, “TCS Microsoft Business Unit (MBU) is looking forward to taking this solution to our joint customers.”

For more information on NC2 on Microsoft Azure, please visit: nutanix.com/azure

Supporting Materials

About Nutanix

Nutanix is a global leader in cloud software and a pioneer in hyperconverged infrastructure solutions, making clouds invisible, freeing customers to focus on their business outcomes. Organizations around the world use Nutanix software to leverage a single platform to manage any app at any location for their hybrid multicloud environments. Learn more at www.nutanix.com or follow us on social media @nutanix.

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