Market Overview

Nutanix Sees 74 Percent AHV Hypervisor Adoption By U.S. Federal Government Customers in 2017

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Agencies Turning to Nutanix Enterprise Cloud Solutions to Upgrade
Legacy IT

Nutanix
(NASDAQ: NTNX),
a leader in enterprise cloud computing, today announced record adoption
of its AHV hypervisor within the federal government vertical in calendar
year 2017. 74 percent of all Nutanix Enterprise Cloud OS nodes sold to
federal agencies in 2017 are leveraging AHV, compared to 30 percent
adoption by the Nutanix worldwide customer base, based on a rolling
four-quarter average.

In addition to growth in AHV adoption, Nutanix's federal business
experienced several milestones during the last fiscal year, including:

  • Adding nearly 100 new customers in 2017, including component
    organizations within the U.S. Departments of Defense, Commerce,
    Interior, Energy, Health and Human Services, the U.S. Federal Court
    system and federal systems integrators
  • 20 new federal customers with total investments valued at more than $1
    million each, an 82 percent increase from the number of customers in
    previous fiscal year
  • 320 unique federal customers at the end of 2017

"Gartner
estimates U.S. federal cloud spending will more than double over the
next four years... Although some agencies — Recovery Accountability and
Transparency Board (RATB), Consumer Financial Protection Bureau (CFPB),
GSA's 18F and Commerce's International Trade Administration (ITA) —
were, are or will be cloud-only, that model will likely be atypical."
Instead, "most agencies will retain a hybrid model for the foreseeable
future, choosing cloud-native services for some fraction of their
portfolio and maintaining an on-premises component for those most
sensitive and mission-critical applications." (Gartner, Inc., Get Ready
for the Inflection Point in U.S. Federal Government Cloud Adoption, Rick
Holgate and Neville Cannon, January 19, 2016, refreshed June 9, 2017).
We believe this will allow agencies to stay true to federally mandated
cloud-first strategies, prevent them from becoming locked-in to a single
provider, and enable agencies to modernize systems without increasing
cost, complexity or impacting performance.

"The demands on federal IT customers couldn't be higher. They are facing
increasing pressure to modernize systems and implement heightened
security, all while reducing costs," said Dheeraj Pandey, co-founder and
CEO of Nutanix. "Nutanix's momentum in the federal vertical demonstrates
that customers are increasingly turning to Nutanix to meet these
needs—pulling back from ‘one-size-fits-all' public cloud strategies and
placing a greater emphasis on hybrid ecosystems to modernize their
legacy systems. We are eager to continue to partner with federal
customers to achieve these goals."

Government agencies are turning to hybrid ecosystems to lower total cost
of ownership and match applications with appropriate cloud environments.
Federal organizations that are modernizing and optimizing their
infrastructure are finding strong value in Nutanix's ability to help
them reduce the number of separate IT silos. As Nutanix continues to
introduce new technologies, like the recently acquired Botmetric, which
provides visibility into cloud usage so organizations can better manage
costs, federal agencies will continue to see value from adopting the
Nutanix Enterprise Cloud OS.

By including AHV in the Nutanix Enterprise Cloud OS software stack,
Nutanix helps government agencies reduce cost and complexity while
enhancing the visibility and functionality of their infrastructure.
Customers leveraging AHV can eliminate the need to purchase separate
virtualization technology, significantly reducing costs and eliminating
the need to manage multiple licenses. Federal customers continue to
account for the largest portion of the Nutanix AHV user base.

Additional Resources

  • For more information about Nutanix's work in the federal sector, see here
  • Connect with Nutanix via Twitter,
    LinkedIn
    and YouTube

Forward-Looking Statements Disclaimer

This press release includes forward-looking statements including but not
limited to statements concerning our plans and expectations relating to
product features and technology that are under development or in process
and capabilities of such product features and technology. These
forward-looking statements are not historical facts, and instead are
based on current expectations, estimates, opinions and beliefs. The
accuracy of such forward-looking statements depends upon future events,
and involves risks, uncertainties and other factors beyond our control
that may cause these statements to be inaccurate and cause actual
results, performance or achievements to differ materially and adversely
from those anticipated or implied by such statements, including, among
others: failure to develop, or unexpected difficulties or delays in
developing, new product features or technology on a timely or
cost-effective basis; the introduction, or acceleration of adoption of,
competing solutions, including public cloud infrastructure; a shift in
industry or competitive dynamics or customer demand; and other risks
detailed in our quarterly report on Form 10-Q for the fiscal quarter
ended January 31, 2018, filed with the U.S. Securities and Exchange
Commission. These forward-looking statements speak only as of the date
of this press release and, except as required by law, we assume no
obligation to update forward-looking statements to reflect actual
results or subsequent events or circumstances.

About Nutanix

Nutanix is a global leader in cloud software and hyperconverged
infrastructure solutions, making infrastructure invisible so that IT can
focus on the applications and services that power their business.
Companies around the world use Nutanix Enterprise Cloud OS software to
bring one-click application management and mobility across public,
private and distributed edge clouds so they can run any application at
any scale with a dramatically lower total cost of ownership. The result
is organizations that can rapidly deliver a high-performance IT
environment on demand, giving application owners a true cloud-like
experience. Learn more at www.nutanix.com
or follow us on Twitter @nutanix.

© 2018 Nutanix, Inc. All rights reserved. Nutanix and the Nutanix logo
are trademarks of Nutanix, Inc., registered in the United States and
other countries. All other brand names mentioned herein are for
identification purposes only and may be the trademarks of their
respective holder(s).

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