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Nutanix Shares Under Pressure Following Public Cloud Delay

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Nutanix Shares Under Pressure Following Public Cloud Delay

Cloud computing software company Nutanix Inc (NASDAQ: NTNX) saw its stock fall nearly 5 percent Friday afternoon.

What Happened

Nutanix had hoped to launch a public cloud platform in the bottom half of 2018 that would rival industry leader Amazon.com, Inc. (NASDAQ: AMZN)'s AWS, Bloomberg reported. Nutanix's engineers are experiencing "challenges," however, which puts into question the timing of the launch of its new platform called Xi Cloud Services.

Why It's Important

Nutanix is a pioneer in a type of enterprise computing that combines server, storage and virtualization software into one single machine. The company's CEO Dheeraj Pandey told Bloomberg its woes has "less to do with products," but the the ‘how' of engineering.

"How do you break things down, how do you do smaller releases, how do you have multiple parallel streams of engineering going on at the same time?," Pandey said.

What's Next

As an industry pioneer, Nutanix isn't abandoning its cloud ambitions and management has hired new workers so it can take a "truer but longer path to Xi," Jennifer Massaro, a spokeswoman for Nutanix told Bloomberg.

Nutanix closed Friday at $49.59 and at one point was down another 1.2 percent Monday morning, but was nearly unchanged at time of publication.

Related Links:

Global 2000 Companies Will Be 'Core Driver' For Nutanix's $3B Billings Target

KeyBanc Raises Nutanix Price Target As Cloud Computing Company Nets European Contracts

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