Hybrid multicloud computing company Nutanix has simplified Marist College Canbera’s IT infrastructure to enhance the learning experience of its students and educators.
ICT systems and operations manager Sam Walton and his five-man team are responsible for providing the IT infrastructure and rolling out of new projects that keep students connected.
“From an IT perspective, schools are always a complex environment,” Walton said. “Not only are we a relatively large school with more than 2000 end-users including students and teachers, but we also offer many extracurricular activities. The role of IT is to support all the different departments and all the applications they want to run in a single environment.”
Walton said maintaining such a complex environment with a legacy three-tier data centre architecture including servers, storage and networking—a system created decades ago—would be a resource-intensive challenge.
He added that a accurate investment in Nutanix hyperconverged infrastructure, however, freed him and his team to deliver greater value to the school.
“Nutanix is the heart of our digital learning experience,” he said. “We went from a full rack of SANs (storage area networks) and hosts which were much more complicated and required a lot more maintenance just to keep running, to Nutanix which is essentially ‘set up and forget.’
“In our IT team, we have to know so much about everything, so the really good thing about Nutanix is that it just works—I can’t be dedicating resources to maintaining the environment every week. The infrastructure we have now means my team can focus on more strategic projects for the College.”
Another benefit, according to Walton, has been the reduced hardware footprint which has in turn reduced the college’s energy consumption.
“IT infrastructure, particularly outdated infrastructure, can be a major energy burden,” he said. “Instead of a full rack, we’ve gone down to six RU (rack units) in our production environment. This has reduced power consumption to the point we’re now downsizing our UPS (uninterruptible power supply), which provides emergency power if the main power source fails.”
Marist is also deploying three Nutanix nodes for its on-campus Disaster Recovery (DR) environment which keeps systems going in the event of an outage, and another three nodes for object storage, which enables greater data scalability for the school.
“DR is now instant,” Walton said. “For example, late last year I had to move everything to the DR site and performance wasn’t impacted at all. No one noticed any difference. This has enabled me to sleep at night because I know now if something ever goes wrong, we can seamlessly switch over to DR.”
Walton also said he has worked closely with Nutanix partner, Qirx, which has been instrumental in guiding the College during its architecture transformation.
“Qirx has been incredible. They’ve been a trusted partner, making sure the College gets the best outcome. They’re not about pushing products. They understand every school is different, has different challenges, and needs different solutions—and they really took the time to understand what would work best for us.”
Nutanix ANZ managing director Jim Steed said Marist College Canberra has ensured the best learning experience for its students, both today and into the future.
“With its IT team liberated from having to keep the lights on, Walton and the Marist IT team can focus on the things that matter—like improving the student and educator experience—rather than putting out fires and constant maintenance. At Nutanix, we believe IT infrastructure should be invisible so organisations like Marist can focus on what they do best—educating the next generation of Australian leaders,” Steed said.
Established in 1968, Marist College Canberra is a Catholic school for boys from Years 4 to 12. The school’s 200 teachers and staff provide a diversity of academic, spiritual, cultural, and personal development opportunities to its 1,800 students.
Data center infrastructure suppliers Pure Storage Inc. and Nutanix Inc. both sprung a surprise on Wall Street today, posting earnings and revenue that topped analysts’ expectations. However, the results failed to excite investors all that much, as both companies’ shares stayed more or less flat after-hours.
Pure Storage has put together a string of impressive quarters over the past couple of years, and once again it managed to ease fears that the faltering economy might harm its prospects. The company reported a net loss of $787,000 for the third quarter, with earnings before certain costs such as stock compensation coming to 31 cents per share. Revenue came to $676.1 million, up 20% from a year earlier.
Both numbers beat Wall Street’s forecasts, with analysts targeting adjusted earnings of 26 cents per share on revenue of $671.8 million.
Pure Storage Chairman and Chief Executive Charles Giancarlo (pictured, above) said a growing number of customers across the world are relying on his company to satisfy their mission-critical storage and management needs. “With the power of our unique Flash-optimized technology and differentiated business model, we look forward to managing increasingly more of their data storage requirements,” he said.
Pure Storage delivered some impressive numbers across the board, with its subscription services revenue rising 30%, to $244.8 million. Annual recurring revenue from subscription services also rose by 30% to exceed $1 billion for the first time.
In addition, the company reported remaining performance obligations of $1.6 billion, up 26% from a year earlier. RPO represents future obligations arising from contracts with customers, or the amount of cash the company is owed that has not yet been invoiced.
Altogether, Pure Storage ended the quarter with total cash, cash equivalents and marketable securities of just over $1.5 billion.
Analyst Steve McDowell of Moor Insights & Strategy told SiliconANGLE that while every major storage provider delivered revenue growth in the most accurate quarter, Pure Storage once again outperformed the market, growing at almost twice the rate of its nearest competitor. He said the company’s success is due to three factors: a healthy market overall, a richer mix of products and strong financial discipline.
“Pure is profiting from smart product bets it’s placed over accurate years,” McDowell explained. “Pure has one of the most modern all-flash portfolios in the industry and customers are responding to that. Its new high-end FlashArray XL is beating expectations, while its entry-level QLC-based products continue to sell very well.”
In addition, Pure Storage’s bet on Portworx, a data management platform for Kubernetes-based applications, is also paying off handsomely for the company, McDowell said. The company’s subscription revenue, which includes Portworx, now accounts for almost 30% of its overall business.
“I expect Pure will continue to do well, at least in the near- to mid-term,” the analyst continued. “Flash prices are way down across the industry, but I anticipate that Pure will take advantage of the glut in NAND flash to leverage its position as one of the only QLC-based flash vendors. I also believe it will further expand its market into traditional hard-disk near-line storage. Its competitors really can’t follow them there.”
Looking to the fourth quarter, Pure Storage is eyeing revenue of $810 million, just below Wall Street’s forecast of $813.3 million. For the full year, it’s forecasting total revenue of $2.75 billion, which is in line with the analyst’s consensus estimate.
Nutanix delivered impressive results too, with first-quarter earnings before certain costs coming to three cents per share, well ahead of Wall Street’s forecast of a 12-cent loss. Revenue for the period rose 15%, to $433.6 million, comfortably ahead of the $413.1 million consensus estimate. All told, Nutanix posted a net loss of $99.1 million, which was a big improvement on the $419.9 million loss it delivered one year earlier.
While Pure Storage is laser-focused on storage arrays, Nutanix sells a software-defined hyperconverged infrastructure or HCI stack that integrates compute, storage and networking components into a single appliance or cloud service.
Although it still sells physical gear, Nutanix has attempted to shift away from its hardware roots, putting more focus on its “hyperconvergence” software that can run on third-party servers and systems. At the same time, the company has been urging customers to adopt its new subscription model.
Nutanix President and CEO Rajiv Ramaswami (pictured, adjacent) said the company’s solid performance, amid an uncertain macro backdrop, reflects the value that customers see in the Nutanix Cloud Platform and its subscription-based business model. “We also made important progress towards realizing our hybrid multicloud vision with the general availability of Nutanix Cloud Clusters (NC2) on Microsoft Azure and enhancements to our platform to accelerate the adoption of Kubernetes at scale in the enterprise,” he said.
Like Pure Storage, Nutanix reeled off a list of impressive numbers, saying its annual contract value billings rose 27%, to $231.9 million. It also reported ARR of $1.28 billion, up 34% from a year ago. It ended the quarter with free cash flow of $45.8 million.
McDowell said Nutanix caught everyone by surprise with its top-line and bottom-line earnings beat and that there are several reasons why. “Nutanix is selling one of the industry’s best stacks for managing hybrid cloud infrastructure, and its products are resonating well with enterprise IT,” McDowell explained. “It’s also placing strong bets on the public cloud. While on-premises IT spending is down, cloud spending continues to grow and that’s good news for Nutanix.”
Nutanix is also doing very well on the customer acquisition front and landed some important deals that contributed to its success in the quarter. Its new customers included a major federal agency and a large colocation provider. “It’s these kinds of deals that can help take a good quarter and transform it into a great quarter, and that’s what happened here with Nutanix,” McDowell said.
Finally, the analyst said, Nutanix is no doubt benefiting from the ongoing uncertainty around the impact of Broadcom Inc.’s pending acquisition of VMware Inc. The latter company is a major rival to Nutanix, and McDowell said that a lot of customers are skittish about continuing their investments in it. This plays into Nutanix’s hands, McDowell said, because it’s offerings are the natural alternative to VMware’s for many customers.
“Beyond growing its revenue, Nutanix is managing its bottom-line very well,” McDowell added. “This is an organization that’s demonstrating good fiscal control. That’s exactly what’s needed in a market where IT spending overall is shaky.”
Nutanix offered a strong forecast too. For the current quarter ending in January, the company expects to deliver revenue of between $460 million and $470 million, well ahead of Wall Street’s target of $450.7 million. For fiscal 2023 as a whole, Nutanix said it expects revenue of between $1.77 billion and $1.78 billion, which is in line with Wall Street’s consensus estimate of $1.78 billion.
In the after-hours trading session, Pure Storage’s stock chalked up a 2% gain, while Nutanix’s shares dipped by less than a percentage point.
Hewlett Packard Enterprise Co. has expressed interest in acquiring Nutanix Inc., Bloomberg reported today.
Shares of Nutanix, which makes software for managing information technology infrastructure, jumped more than 8% on the news.
HPE’s acquisition talks with Nutanix have reportedly been “on and off.” Additionally, today’s report stated that it’s unclear whether HPE and Nutanix will succeed in agreeing upon an acquisition price.
Nutanix has a market capitalization of more than $7 billion, which suggests that any potential acquisition would carry a significant price tag. And Dave Vellante, chief analyst at SiliconANGLE sister market research firm Wikibon, said that “if HPE is going to drop $7 billion-plus there might be some other considerations in terms of where to invest.”
According to today’s report, Nutanix may eventually decide against a sale and instead opt to continue operating as an independent company. Alternatively, it’s believed that Nutanix may seek a bid from another potential buyer besides HPE.
The development comes less than two months after reports first emerged that Nutanix is considering a sale. At the time, it was reported that a sale to a private equity firm may also be on the table.
San Jose, California-based Nutanix sells software products that organizations use to manage their IT infrastructure. The company’s software can run on both cloud and on-premises infrastructure. In on-premises environments, Nutanix software is commonly installed on hyperconverged appliances, which package compute, storage and network equipment into a single chassis to ease maintenance.
Besides the infrastructure management market, Nutanix also competes in a number of adjacent markets. It provides a database management service called Era and offers multiple cybersecurity features. Additionally, Nutanix sells a Kubernetes distribution that includes automation tools and other capabilities not included in the open-source version.
Acquiring Nutanix could enable HPE to expand the software capabilities of its GreenLake platform. GreenLake, HPE’s flagship offering, enables customers to purchase on-premises data center infrastructure from the company on a pay-as-you-go basis. HPE also installs and manages the infrastructure on customers’ behalf.
HPE’s revenue grew 7% year-over-year, to $7.9 billion, last quarter. The company easily topped analysts’ consensus sales estimate of $7.4 billion. HPE’s Intelligent Edge revenue segment, which includes a part of the revenue it generates from the GreenLake platform, increased sales by 18% year-over-year.
Nutanix also topped analyst expectations during its most accurate quarter. The company significantly narrowed its net loss to $99.1 million from $419.9 million a year earlier and grew revenues by 15%, to $433.6 million, during the same time frame. Nutanix added 530 new customers in the quarter.
In 2019, HPE partnered with Nutanix to make core components of the latter company’s software portfolio available through its GreenLake infrastructure platform. Last year, the companies expanded the partnership to include Nutanix’s Era database management software. HPE combined Era with its popular ProLiant series of servers and made the bundle available as a service for GreenLake customers.
Hewlett Packard Enterprise (HPE) may have hyperconverged infrastructure vendor Nutanix on its wishlist this holiday season as the OEM reportedly weighs an acquisition bid.…
Citing people familiar with the matter, Bloomberg this week reported that HPE has been in talks on and off over the past few months to acquire the converged virtualization and storage vendor. Rumors of a takeover have been circulating around Wall Street since October when it was first reported that the company was exploring a sale.
However, since its market cap fell to $3.1 billion this summer – a development that likely spurred initial interest in an acquisition – Nutanix's financials have improved steadily. In fiscal year 2022 the company's net losses totaled $798 million.
As of its Q1 2023, Nutanix appears to have gotten the bleeding under control, managing to curb its losses and pushing the company's market cap to $6.24 billion in the process. If Nutanix can keep up this trend, the company very well could post a profit before the new year is out.
So what could HPE possibly want with Nutanix? One potential destination for the company's virtualization and storage stack could be HPE's GreenLake everything-as-a-service (XaaS) platform.
As our sister site The Next Platform recently postulated, the only companies willing to drop the kind of cash necessary to buy Nutanix would likely be one of the major cloud providers – Amazon, Microsoft, or Google – which could use the company's software stack as a "quick and dirty" way to sell customers on hybrid cloud.
However, the same qualities that would make Nutanix's virtualization and storage suite attractive to cloud providers would also fit nicely into HPE's GreenLake software strategy.
Introduced in 2018, GreenLake was HPE's bid to bring cloud-style consumption-based pricing to on-prem datacenters. In 2019, HPE announced plans to bring its full portfolio under the GreenLake umbrella.
But unlike rival XaaS vendors, like Lenovo TruScale, HPE has leaned heavily on software to sell its GreenLake vision – developing a cloud-esque control plane of its own.
And over the past few years the company has regularly rolled out additional functionality – like Kubernetes, block storage, and operations management – to make buying GreenLake feel less like leasing hardware and more like a private cloud.
Despite these efforts, HPE has struggled to sell its more than 80,000 global partners on the model. Late last year, the company admitted that just 900 of its global partners had agreed to resell the platform.
As such, HPE may see Nutanix as a way to attract more customers to its XaaS platform.
Such a strategy would stand in stark contrast to that of rival Dell. Rather than integrating VMware's virtualization stack into its own Apex XaaS service, Dell spun off the virtualization giant late last year. Meanwhile, Lenovo has gone out of its way to avoid the issue of software wherever possible, preferring to partner with software vendors rather than buy or build its own private and/or hybrid cloud stack. ®
SAN JOSE, Calif., December 01, 2022--(BUSINESS WIRE)--Nutanix (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced that its management will present at the following upcoming financial community event:
Barclays Global Technology, Media and Telecommunications Conference
Wednesday, December 7, 2022
1:20 p.m. PST; 4:20 p.m. EST
A live webcast and replay of the presentation will be accessible on the Nutanix Investor Relations website at ir.nutanix.com.
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 trademarks of Nutanix, Inc. in the United States and other countries. Other brand names mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release contains 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20221201005005/en/
Nutanix NTNX reported non-GAAP first-quarter fiscal 2023 earnings of 3 cents per share, significantly narrower than the Zacks Consensus Estimate of a loss of 12 cents and a year-ago quarter’s loss of 22 cents.
Nutanix reported revenues of $433.6 million, beating the Zacks Consensus Estimate of $413.1 million. The top line climbed 15% from the year-ago quarter’s figure of $378.5 million. NTNX noted that the average contract term length declined to 3.0 years from 3.1 years in the year-ago quarter, primarily due to higher federal businesses that usually have shorter contract term lengths.
During the fiscal first quarter, Nutanix’s Annual Contract Value (ACV) billings jumped 27% to $231.9 million.
Nutanix Price, Consensus and EPS Surprise
Nutanix price-consensus-eps-surprise-chart | Nutanix Quote
Product revenues (48.1% of revenues) increased 15.8% year over year to $208.6 million. Support, entitlements & other services revenues (52 % of revenues) grew 13% to $225 million.
The top line was primarily driven by growth in NTNX’s core hyper-converged infrastructure software and the solid adoption of its new capabilities. Nutanix continues to witness a strong adoption of its hybrid multi-cloud solutions across Fortune 100 and Global 2000 companies.
Subscription revenues (92.9% of revenues) climbed 19% from the year-ago quarter’s figure to $402.9 million. However, professional services revenues (5.1% of revenues) declined 7.5% to $22.3 million.
Non-Portable Software revenues (1.8% of revenues) plunged 45.5% year over year to $7.8 million. Hardware revenues (0.1% of revenues) slumped 71.2% to $624 million.
Billings were up 18% year over year to $469.7 million. Annual Recurring Revenues climbed 34% to $1.28 billion.
During the fiscal first quarter, Nutanix added 530 customers, taking the total number of clients to 23,130.
During the fiscal first quarter, Nutanix’s non-GAAP gross margin expanded 130 basis points (bps) year over year and 80 bps sequentially to 83.4%.
Non-GAAP operating expenses decreased 0.4% year over year to $351.1 million.
As of Oct 31, 2022, cash and cash equivalents plus short-term investments were $1.39 billion, up from $1.32 billion at the end of fourth-quarter fiscal 2022.
During the first quarter of fiscal 2023, cash utilized through operating activities was $65.5 million and free cash flow was $45.8 million.
For the second quarter of fiscal 2023, Nutanix expects ACV billings between $245 million and $250 million. Revenues are estimated between $460 million and $470 million.
Non-GAAP gross margin is estimated to be in the 82-83% range. Non-GAAP operating margin is expected in the band of 5-10%.
For the full fiscal 2023, NTNX expects ACV billings between $895 million and $900 million. Revenues are estimated in the range of $1.77-$1.78 billion.
Non-GAAP gross margin is estimated to be 82-83% for fiscal 2023. Non-GAAP operating margin is projected in the range of 2-4%.
Nutanix currently carries a Zacks Rank #3 (Hold). Shares of NTNX have declined 11.8% in the past year.
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ZS' earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 28.6%. Shares of the company have declined 58.1% in the past year.
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