Nutanix(NTNX) - 2025 Q4 - Annual Report

Part I Business Overview Nutanix is a hybrid multicloud computing leader, providing a unified software platform for applications and AI, simplifying distributed app and data management. - Nutanix is a hybrid multicloud computing leader, offering a unified software platform for running applications and AI and managing data anywhere, with a vision to simplify distributed app and data operations[19] - The Nutanix Cloud Platform supports diverse workloads including business-critical applications, data platforms, enterprise AI (machine learning, generative AI, agentic AI), general-purpose, end-user computing, and cloud-native applications[20] - Nutanix has transitioned to a subscription-based business model, offering term-based licenses and SaaS subscriptions typically ranging from one to five years, with support and entitlements included[21][22][31][32] - Key growth strategies include landing new end customers through targeted sales and marketing, expanding sales to existing customers by targeting new workloads and upselling, and driving renewals and retention for profitable growth[40][44] - The company had over 29,000 end customers as of July 31, 2025, across diverse industries, with approximately 77% of customers with Nutanix for 18+ months making repeat purchases[39][329] Overview Nutanix is a hybrid multicloud computing leader focused on simplifying distributed application and data management through its unified software platform. - Nutanix is a hybrid multicloud computing leader, offering a unified software platform for running applications and AI and managing data anywhere[19] - The company's mission is to delight customers with an open, secure platform with rich data services that increases their ability to take advantage of new technologies such as cloud native and AI, optimizes how they run their organizations today, and accelerates innovation, efficiency, and growth[19] - Nutanix pioneered hyperconverged infrastructure (HCI) and developed its native hypervisor, Nutanix AHV, transitioning to a subscription-based business model[21] The Nutanix Cloud Platform The Nutanix Cloud Platform provides a consistent operating model for applications and data across core data centers, edge, and public clouds. - The Nutanix Cloud Platform provides a consistent cloud operating model for running applications and managing data in core data centers, at the edge, and in public clouds[20] - It supports diverse workloads including business-critical applications, data platforms, enterprise AI (machine learning, generative AI, agentic AI), general-purpose workloads, end-user computing, and cloud-native applications[20] - Key components include Nutanix Cloud Infrastructure (NCI) for distributed HCI, Nutanix Cloud Manager (NCM) for unified management, Nutanix Kubernetes Platform (NKP) for enterprise-grade Kubernetes, Nutanix Unified Storage (NUS) for consolidated data services, Nutanix Database Service (NDB) for automated database management, and Nutanix Enterprise AI (NAI) for centralized inferencing[23][24][25][26][27][28][29][30] Delivery of Our Solutions Nutanix solutions are deployed across various environments, offered via subscription licenses, with hardware typically purchased from partners. - The Nutanix Cloud Platform can be deployed in core data centers, at the edge, or in public/managed clouds (AWS, Microsoft Azure, Google Cloud via NC2), running on various qualified hardware platforms[31] - Subscription term-based licenses typically range from one to five years, with cloud-based SaaS subscriptions extending up to five years[31] - Customers generally purchase qualified hardware platforms from channel partners or OEMs, and support and entitlements are included within subscription fees[31][32] Our Partners Nutanix leverages a diverse partner ecosystem, including channel, OEM, and cloud partners, to drive sales and solution adoption. - Nutanix leverages channel, OEM, ecosystem, and cloud partners to drive sales and adoption of its solutions[33] - Channel partners (distributors, resellers, MSPs, telcos, GSIs) represented 41% of total revenue for fiscal 2025 from the top two distributors[34] - OEM partners (Cisco, Dell, Fujitsu, HPE, Lenovo) sell Nutanix software bundled with their hardware, including new solutions integrating with Dell PowerFlex and certifying Cisco UCS blade servers[35] - Ecosystem partners (e.g., AMD, Intel, Nvidia) integrate their products with Nutanix solutions, while cloud partners (AWS, Microsoft Azure, Google Cloud) extend the platform's reach[36][37] Our Support Programs Nutanix provides various levels of software and hardware support, alongside professional services for optimal environment management. - Nutanix offers varying levels of software support and hardware support for Nutanix-branded NX platforms[38] - Professional services are provided for assessment, design, deployment, and optimization of Nutanix environments[38] Our End Customers Nutanix serves a broad base of over 29,000 end customers across diverse industries and also supports service providers. - Nutanix serves a broad and diverse base of over 29,000 end customers as of July 31, 2025, across industries like financial services, retail, manufacturing, public sector, and technology[39] - The company also sells to service providers who use the Nutanix Cloud Platform to offer cloud-based services to their own customers[39] Growth Strategy Nutanix's growth strategy focuses on customer acquisition, expansion, and retention, while driving profitable growth and deepening partner engagement. - Key growth elements include landing new end customers through sales and marketing investments and partner networks, expanding sales to existing customers via a 'land-and-expand' strategy, and driving renewals and retention[40] - The company aims to build on its hybrid multicloud vision, deepen engagement with all partner types, and drive profitable growth by balancing investments with operational efficiencies[44] Sales and Marketing Sales efforts involve a global force supporting partners, while marketing focuses on educating customers and promoting cloud platform capabilities. - Sales primarily involve a global sales force interacting directly with IT decision-makers and supporting channel partners and OEMs[42] - Marketing focuses on educating customers about the benefits of the cloud software platform, driving market awareness of virtualization, cloud-native, and enterprise AI-ready capabilities, and leveraging co-marketing with partners[43] Research and Development R&D efforts are dedicated to enhancing existing technologies, developing new solutions, and supporting current customer deployments. - R&D efforts focus on enhancing existing technologies, developing new ones in current and adjacent markets, and supporting existing customer deployments[45] - Significant resources are dedicated to global R&D teams to support solution enhancements, improve ecosystem partner integration, and expand platform technologies and features[45] Manufacturing Nutanix does not manufacture hardware; its NX series platforms are manufactured by Super Micro Computer, Inc. - Nutanix does not manufacture hardware; its NX series hardware platforms are manufactured by Super Micro Computer, Inc. (Supermicro)[46] - Supermicro designs, assembles, and tests the Nutanix-branded hardware, procuring components from third-party suppliers[46] Competition Nutanix operates in intensely competitive cloud infrastructure and platform services markets, facing diverse competitors and evolving competitive factors. - Nutanix operates in intensely competitive cloud infrastructure and platform services markets, facing competition from software providers (VMware, Microsoft, Red Hat), public cloud providers (AWS, Google Cloud, Azure), and traditional IT systems vendors (Dell, HPE, NetApp)[47][49] - Competitive factors include platform features, scalability, performance, ecosystem, management, total cost of ownership, customer choice, application mobility, and customer experience[50][54] - The company has expanded into adjacent markets like Kubernetes management, data/platform services, AI platform services, and cloud management, facing new and established competitors[50] Intellectual Property Nutanix protects its intellectual property through patents, trademarks, copyrights, trade secrets, and confidentiality agreements. - Nutanix relies on patents, trademarks, copyrights, trade secret laws, confidentiality procedures, and employee agreements to protect its intellectual property[52] - As of July 31, 2025, the company had 578 issued U.S. patents (expiring between 2033 and 2045) and 159 non-provisional patent applications pending[52] Facilities Nutanix's corporate