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Nutanix CEO: Why Hardware Vendors Are Becoming ‘Irrelevant’

‘Hardware companies are scratching their heads on how they’ll help in this public cloud transition -- and they can’t. They become irrelevant,’ says Nutanix CEO Dheeraj Pandey in an interview with CRN.

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Pandey On How COVID-19 Is Changing The IT And Business World

Years ago, Nutanix CEO Dheeraj Pandey made the decision to transform into a pure software and subscription-based company, pulling away from all hardware sales. Nutanix’s leader says the coronavirus pandemic is making many IT hardware vendors “irrelevant” as many businesses speed up their digital transformation projects and seek new cloud solutions.

“Hardware companies are scratching their heads on how they’ll help in this public cloud transition -- and they can’t,” said Pandey in an interview with CRN. “They become irrelevant. Hardware companies, especially proprietary hardware companies, are having to think really hard about how they can actually help in this transition to the cloud.”

Last week, the San Jose, Calif.-based hyperconverged and hybrid cloud specialist reported fiscal third quarter software and support sales of $315 million, up 18 percent year over year, while also unveiling that its executive team will take a 10 percent pay cut due to economic uncertainty caused by COVID-19.

In an interview with CRN, Pandey talks about the decision to cut pay for executives and not employees, shifting sales compensation to an annual contract value (ACV) model, and the coronavirus pandemic’s impact on market competition.

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