back to article Nutanix spanked as it predicts sales slowdown

Nutanix posted excellent quarterly revenue results – but its outlook for next quarter is so comparatively low that its shares took a hammering. The hyperconverged system supplier's revenues were US$182.2m for its second quarter, ended January 31, up a chunky 77 per cent from the $102.7 million reported a year ago. The …

  1. JohnMartin

    Turns out we done all know it

    "As we all know they are largely fading away mostly not refreshed the second time."

    (Disclosure NetApp employee, opinions are my own etc etc)

    Sorry wrong on both counts .. from where I sit, flexpod sales to new accounts are looking really healthy, and they don't use a rip and replace upgrade strategy in any case, so theres a lot of evolutionary growth throughout the stack over time in the existing customers. Thats one of the advantages of independent scale at each layer in the stack, as compute network and storage don't always need to be refreshed simultaneously (usually they don't, network tends to stick around the longest and compute cycles through the fastest)

    I think vBlock used to be rip and replace at the end of their maintenance period, but they were built to be a large scaling unit, good in their own way, but the last time I looked they seemed to have moved towards a more flexpod like way of doing their life cycles. In any case DMC seems to be more focussed on VXsomething so maybe the vBlocks are fading at the hands of the incongruity of Dell selling Cisco servers.

  2. Anonymous Coward
    Anonymous Coward

    Any thoughts?

    And here's me thinking that Nutanix was unstoppable. Those forward forecasts are either lowballed to make them look better next Q or they are running out of steam already.

    Anyone care to comment?

    1. Anonymous Coward
      Anonymous Coward

      Re: Any thoughts?

      One of the accounts them mentioned as a closed deal I'm fairly certain isn't actually closed. Going to Check on that but I feel like they under-estimate their competition.

      VSAN bundles with ELAs and it being perceived as "mature" are likely what is slowing their large deal adoption. Both Microsoft and VMware have public cloud plays that nutanix is frozen out of (Azure, IBM Softlayer running VSAN now, and VMW on AWS coming soon).

      They are trying to get into the cloud management portal space (Clam.IO) but this is a saturated market.

      OEM revenue was flat for them (and not for VMware obviously) so their limited partnerships actually saw a lowering (stated on the call about Dell).

      Goldman and other underrighters have dumped shares, the bleeding only slowed on Friday as someone started defending the put line at 22.5 is my suspicion).

      Something like over 80% of their shares are still under lockup with less than 30 days ans I expect the employee dumping to begin soon.

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