Nutanix
Nutanix (NTNX) provide a leading next-generation enterprise cloud platform that converges traditional silos of server, virtualization and storage into one integrated solution that can also connect to public cloud services. Its software delivers the agility, scalability and pay-as-you-grow economics of the public cloud, while addressing enterprise requirements of application mobility, security, data integrity and control. Nutanix provide its customers with the flexibility to selectively utilize the public cloud for suitable workloads and specific use cases by enabling increasing levels of application mobility across private and public clouds. Nutanix has combined advanced web-scale technologies with elegant consumer-grade design to deliver a powerful enterprise cloud platform that elevates IT organizations by enabling them to focus on the applications and services that power their businesses. Nutanix's invisible infrastructure provides constant availability and low-touch management, enables application mobility across computing environments and reduces inefficiencies in IT planning.1
Nutanix was founded in September 2009 and in October 2011 began selling the initial version of the Nutanix Operating System, which pioneered hyperconverged infrastructure by providing block storage for virtualized environments on VMware. In 2012, the company released a new version of its software which included support for file storage, high availability and enhanced security. In 2013, the company released several versions of its software, which added its intuitive Prism interface, built-in disaster recovery, deduplication, compression, and additional hypervisor support for Hyper-V and KVM. In 2014, the company added enhanced resiliency, One-click Upgrade, Cloud Connect backup to Amazon Web Services, or AWS, and Cluster Health Analytics. In 2015, the company rebranded the Nutanix Operating System as Acropolis and introduced the Acropolis Distributed Storage Fabric, Acropolis Mobility Fabric and Acropolis Hypervisor.
Its solution can be delivered either as an appliance that is configured to order or as software only. When end-customers purchase its platform, they typically also purchase one or more years of support and maintenance in order to receive software upgrades, bug fixes and parts replacement. Product revenue is generated primarily from the sales of its solution, and is generally recognized upon shipment. Support and other services revenue is derived from the related support and maintenance contracts, and is recognized ratably over the term of the support contracts.
Nutanix has a broad and diverse base of 6,172 end-customers as of April 30, 2017 , including 521 Global 2000 enterprises. Nutanix define the number of end-customers as the number of end-customers for which the company has received an order by the last day of the period, excluding partners to which the company have sold product for their own demonstration purposes. A single organization or customer may represent multiple end-customers for separate divisions, segments or subsidiaries. Since shipping its first product in fiscal 2012, its end-customer base has grown rapidly. The number of end-customers grew from 3,111 as of April 30, 2016 to 6,172 as of April 30, 2017 . Its platform is primarily sold through channel partners, including distributors and resellers, and delivered directly to its end-customers. A major part of its sales and marketing investment is to educate its end-customers about the benefits of its solution, particularly as the company continue to pursue large enterprises and mission critical workloads. Its solutions serve a broad range of workloads, including enterprise applications, databases, virtual desktop infrastructure, or VDI, unified communications and big data analytics and the company has recently announced the capability to support both virtualized and non-virtualized applications. Nutanix has end-customers across a broad range of industries, such as automotive, consumer goods, education, energy, financial services, healthcare, manufacturing, media, public sector, retail, technology and telecommunications. Nutanix also sell to service providers, who utilize its platform to provide a variety of cloud-based services to their customers.
Nutanix has invested heavily in the growth of its business, including the development of its solutions, build-out of its global sales force and the acquisitions of Calm.io Pte. Ltd., or Calm, and PernixData, Inc., or PernixData, during the nine months ended April 30, 2017 . The number of its full-time employees increased from 1,798 as of April 30, 2016 to 2,672 as of April 30, 2017 . Nutanix has recruited an engineering team focused on distributed systems and IT infrastructure technologies at its San Jose, California headquarters and at its research and development centers in Bangalore, India, Durham, North Carolina and Seattle, Washington. Nutanix has also expanded its international sales and marketing presence by continuing to build out its global teams. Nutanix intend to continue to invest in its global engineering team to enhance the functionality of its platform, introduce new products and features and build upon its technology leadership, as well as continue to expand its global sales and marketing teams.
In October 2016, Nutanix completed its initial public offering, or IPO, of Class A common stock, in which it sold 17,100,500 shares, including 2,230,500 shares pursuant to the underwriters’ over-allotment option. The shares were sold at an IPO price of $16.00 per share for net proceeds of $254.5 million , after deducting underwriting discounts and commissions of $19.2 million . It incurred offering costs of $5.2 million .
