The Strategic Positioning Of Nutanix Can't Be Denied

Viable Partner

Analysts Alex Kurtz and Steve Enders believe Nutanix remains a viable partner to Hewlett Packard Enterprise Co HPE and Cisco Systems, Inc. CSCO, given its multi-hypervisor support, mature and battled-tested OS and expanding enterprise and cloud capabilities. This is despite these companies now having in-house hyper-converged infrastructure platforms.

Pacific Crest is of the view that these OEMs would need a high-end competitive solution like Nutanix that has a defined multi-year product roadmap, as Dell/EMC expands its VxRail platform.

The firm noted that Nutanix announced a strategic partnership with Alphabet Inc GOOGL GOOG'S Google Cloud Platform on Wednesday. Thus, the company now has integration efforts with the top 3 hyperscale providers, the firm said.

Xi: An Opportunity To Expand TAM

The firm sees the Google partnership as fitting into Nutanix' Xi platform announcement. The firm also pointed to the management's statement the company could eventually derive a license or subscription fee for data managed in public cloud via Xi.

Pacific Crest thinks executing on this vision is critical to expand its total addressable market from the near-term $11 billion for integrated systems to the $100 billion "all-in" TAM outlined at the IPO.

Pacific Crest has an Overweight rating and it reiterated its $30 price target on the shares of Nutanix.

At the time of writing, shares of Nutanix were down 1.05 percent to $19.72.

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