Nutanix Uses Q2 Financial Call To Discuss Dell EMC Relationship, HPE's SimpliVity Buy, Future Direction

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Nutanix is increasing its dependence on channel partners, and on vendor partners such as Dell EMC and Lenovo, as it continues to drive toward profitability in the hyper-converged infrastructure market.

Nutanix, which on Thursday reported its second fiscal quarter 2017 financial results, also said it continues to perform well against competitors such as Hewlett Packard Enterprise and its newly acquired SimpliVity business, but is seeing the current memory shortage impacting results for the next quarter.

Nutanix for its second fiscal quarter of 2017, which ended Jan. 31, reported revenue of $182.2 million. That was up about 77 percent over the $102.7 million the company reported for the second fiscal quarter of 2016, said Dheeraj Pandey, chairman and CEO of the San Jose, Calif.-based company.

[Related: 23 Powerful Hyper-Converged Infrastructure Products]

Pandey, speaking to financial analysts during Thursday's analyst conference call, said Nutanix signed 900 new customers during the quarter, compared with 700 new customers in the prior quarter, bringing the company's total customer count to over 5,300 companies.

The company's growth came in part because of its partnership with Dell EMC, which integrates Nutanix software on its PowerEdge servers, and because of a growing partnership with Lenovo, which integrates the software on its System x servers, Pandey said.

While there are those who doubted that Nutanix would continue to thrive once Dell finished its acquisition of EMC and gained VMware's hyper-converged infrastructure technology, that has not proven to be the case, he said.

Despite Dell EMC's move to improve front-end compensation for selling that company's VxRail offering, Dell EMC is also continuing to do well with Nutanix, Pandey said. "There's only our brand that works at scale," he said.

Howard Ting, Nutanix's chief marketing officer, said during the call that Nutanix continues to spend time with Dell EMC to show its sales reps the areas where the Nutanix offering works best.

Pandey said Nutanix has done much to train Dell EMC on the Nutanix portfolio because corporate executives will look at what is best for them and not what the corporate officers say

"This is going to come down to hustle on the street," he said.

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