Market Overview

Nutanix Announces Intent to Acquire Frame


Strategic Acquisition Will Bolster Xi Cloud, Enabling First
Multi-Cloud Desktops-as-a-Service

a leader in enterprise cloud computing, today announced that it has
entered into a definitive agreement to acquire Mainframe2, Inc.
("Frame"), a leader in cloud-based Windows desktop and application
delivery. With Frame, Nutanix customers will be able to deliver
desktops-as-a-service (DaaS) from multiple clouds, combining the
consumer-grade simplicity and web-scale design of cloud applications
with the functionality of traditional virtual desktop applications. The
closing of the acquisition is subject to customary closing conditions.

This press release features multimedia. View the full release here:

Nutanix Announces Intent to Acquire Frame (Graphic: Business Wire)

Nutanix Announces Intent to Acquire Frame (Graphic: Business Wire)

According to Gartner, "by 2019, 50% of new VDI users will be deployed on
DaaS platforms." The report goes on to state that, "interest in DaaS has
resurfaced as a hot topic with midsize organizations that have
progressed and matured their cloud strategies." (Gartner, Inc., When
Midsize Organizations Should Select Desktop as a Service, Nathan Hill,
Refreshed: July 19, 2018 | Published: 31 January 2017) Taking advantage
of Frame's cloud-native architecture, Nutanix will extend the service to
Xi Cloud and Google Cloud Platform, while continuing support for popular
third-party clouds like AWS and Azure. This will provide customers with
a genuine multi-cloud deployment model, consistent with Nutanix's
philosophy of customer choice.

Based on recent research from IDC, the DaaS software market is forecast
to grow to $2.99 billion in 2021 at a compound annual growth rate of
32.1% (IDC Worldwide Desktop-as-a-Service Software Forecast, 2017-2021,
Robert Young, June 2017, IDC). The rapid adoption of cloud-native
applications is fundamentally altering how applications and services are
delivered to users. Modern ‘born in the cloud' applications are
inherently elastic, delivering on-demand scalability – and are built to
support multiple organizations from a single cloud. Frame embodies these
same principles for delivering DaaS. Its web-scale architecture
incorporates auto-scale functionality providing impressive performance
at any scale, while natively supporting multiple tenants with complete
isolation of users, desktops and data.

Frame is built from the ground-up to support multi-cloud delivery
models, allowing IT teams to deliver virtual desktops from public clouds
and their own enterprise datacenter – with common tooling and management
constructs. Leveraging a multi-cloud architecture for DaaS provides
easier migration of applications across environments, more seamless
disaster recovery and a single IT environment for delivering both
traditional and cloud-native applications.

Cloud-based delivery has also elevated end user expectations. With
Frame, users get a high-performance desktop experience in just minutes,
without having to install proprietary client software. Applications can
be instantly accessed from an online ‘app marketplace' from anywhere to
maximize customer delight and productivity.

With Frame, Nutanix will address customer requirements for DaaS in the
mid-market, while continuing its long-standing support for large-scale
VDI projects delivered via enterprise datacenters. This includes
continued support for VMware Horizon View, as well as remaining Citrix
Ready certified for Citrix XenDesktop and XenApp. Frame simply provides
Nutanix customers another deployment option for delivering virtual

"Companies desperately need a cloud-native desktop solution for their
multi-cloud environments which combines the performance of on-prem
offerings with the flexibility and cost optimization of the cloud.
That's why we built Frame," said Nikola Bozinovic, Founder and CEO at
Frame. "Nutanix shares our vision of simplifying critical IT functions
so companies can save money, save time and still achieve exceptional
performance no matter their underlying infrastructure, and we're so
proud to be joining the family."

Frame is the only global, infrastructure-independent platform built to
deliver Windows applications from the cloud. Companies from across
industries rely on Frame to run even the most graphically-intense 3D
tools for visualization, science and engineering, and cutting-edge
design. Through Frame Platform Government Edition and Frame on Microsoft
Azure Government, government agencies can take advantage of a secure,
next-generation end-user computing platform which is designed to meet
government requirements, including FedRAMP and NIST 800-171.

"Frame's cloud-native technology represents everything we believe to be
true in the market - customers want easy-to-use, high performance and
cost optimized solutions that just work across the entirety of their
infrastructure," said Sunil Potti, Chief Product and Development Officer
at Nutanix. "We are committed to providing our customers with a robust
multi-cloud DaaS offering through Frame while working with our partners
to enable best-in-class enterprise VDI. We are delighted to add the
Frame technology, and the innovative thinkers behind it, to our family."


Frame will be available following the closing of the acquisition on
third-party clouds from AWS and Azure. Availability on Nutanix Xi Cloud
and Google Cloud Platform will be announced at a later date.

For more information on Frame and Nutanix, watch our video
or read more on our blog.

Forward-Looking Statements

This press release contains express and implied forward-looking
statements, including but not limited to statements relating to the
trend for companies to leverage desktops-as-a-service platforms, the
growth of the desktops-as-a-service market, the closing of the Frame
acquisition, the impact of the Frame acquisition to our business, our
plans to introduce product features in future releases, including
Nutanix Xi Cloud and the integration of Frame into Nutanix Xi Cloud and
our other offerings, our plans to make Frame available on Google Cloud
Platform, and our ability to successfully integrate Frame and its
employees and intellectual property. These forward-looking statements
are not historical facts and instead are based on our current
expectations, estimates, opinions, and beliefs. Consequently, you should
not rely on these forward-looking statements. 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 our actual results,
performance or achievements to differ materially and adversely from
those anticipated or implied by such statements, including, among
others: failure to close, or unexpected difficulties or delays in
closing, the Frame acquisition; failure to develop, or unexpected
difficulties or delays in developing, new product features or technology
on a timely or cost-effective basis; delays in or lack of customer or
market acceptance of desktops-as-a-service platforms or our new product
features or technology; our ability to successfully integrate Frame's
employees and intellectual property; the possibility that we may not
receive anticipated results from the Frame acquisition; the
introduction, or acceleration of adoption of, competing solutions,
including public cloud infrastructure; and other risks detailed in our
Quarterly Report on Form 10-Q for the quarter ended April 30, 2018,
filed with the SEC on June 12, 2018. Our SEC filings are available on
the Investor Relations section of the company's website at
and on the SEC's website at
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
or follow us on Twitter @nutanix.

© 2018 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo and
all Nutanix product and service names mentioned herein are registered
trademarks or trademarks of Nutanix, Inc. 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).

View Comments and Join the Discussion!