Re: Um...
They were arrogant from the get go but it unbearable lately. Their marketing keeps writing checks their products cannot cash.
Sure, the smooth upgrade and management were cool at first but everyone does that now and Nutanix’ first mover product is showing cracks. Sucks to be the first one to try things.
But now that the competitors are equal or even better in many aspects, Nutanix was pushing into more and more spaces. Software Defined Networking! Application Blueprint! Application Performance Management!
Honestly, all those products look like shareware. It’s laughable to demand almost as much as New Relic for APM and Morpheus for CMP but offering a puny subset of the functionality.
And now you have to start paying license per core and per storage capacity. WTF? Forcing customers into this new SW license model including audits and enforcement. They went from expensive to Oracle-esque but keep harping about the “vTax”.
And still, only 13% growth in a 70% growth market and $120m losses with another $100m coming (it will be more, you’ll see).
The convertible note for $500m (give us a loan, stock is collateral) they issued last May or so is due soon and almost depleted. They need more cash to keep the lights on and they need it quick. Problem is, their stock is worth shit now and might go lower.
They’ve entered the death spiral: big losses and no cash, more pressure, more discounts, more losses, smart talent sees the signs and bails, all leads to worse quarter, cuts, more pressure, more losses, ...
Six to nine more months until they get bought by IBM.