Nutanix – Possible First Public Hyper-converged Infrastructure Startup
Nutanix may make history as the first hyper-converged infrastructure startup to go public. In late December 2015, Nutanix filed for an IPO in hopes of going public sometime during the early months of the new year.
This company sells IT systems, which consist of x86 hardware and advanced software. This advanced software simplifies management and infrastructure deployment for enterprises. The hyperconverged infrastructure allows enterprises to use a single stock keeping unit with one management layer for computing, storage, and networking. The hyperconverged infrastructure features advanced software-defined storage capabilities.
Despite the many uses of this architecture, interest was non-existent just two or three years ago. Fortunately, interest in this architecture has been on the rise for quite some time and Nutanix is pioneering the industry. So far, Nutanix has succeeded in securing a solid customer base, including Nintendo, Best Buy, Nordstrom, Activision Blizzard, Toyota, and Kellogg. Nutanix has also partnered with IT vendors like Lenovo and Dell, which are some of the largest IT vendors in the world.
Due to the poor performance of enterprise tech IPOs in 2015, the IPO of Nutanix will be closely monitored. The uncertainty and excitement surrounding hyperconverged infrastructure will also contribute to the amount of attention that Nutanix’s IPO will receive in 2016.
Today, hyperconverged infrastructure seems promising to most. However, no one can tell whether hyperconvergence is here to stay for the long run or if it will be deemed obsolete by another technology. Nutanix fully acknowledges both possibilities in its SEC filing.
Another risk factor that Nutanix will encounter is competition. Nutanix, a startup company, is up against many major IT vendors like Dell, HP, IBM, Cisco, and Oracle. Many of these IT vendors sell pre-integrated full IT stacks, converged infrastructure products, and even hyperconverged infrastructure products. Currently, Dell is attempting to acquire EMC. If Dell’s efforts work, Dell, EMC, and VMware will become a single company. This single company could become a major source of competition for Nutanix.
As of now, Nutanix has not made much money. While Nutanix made $240 million during the last fiscal year, it also lost $126 million. The entire world is watching to see if Nutanix will ever turn this trend around for the better.
