​Success of NTNX’s AHV could be a problem for Dell relationship: We are increasingly concerned that the Dell OEM relationship that NTNX has begun to fray and this is NOT good news for the company and its investors. We believe Dell has every reason to kill this OEM relationship because NTNX is trying to replace VMware hypervisor with AHV hypervisor at every new customer. In the most recent quarter, Nutanix reported that AHV is running on 21% of the nodes it shipped. The growth of AHV is a direct competitive threat to Dell and VM Ware which in turn will drive Dell not to enable Nutanix with its sales force. According to Nutanix CEO Dheeraj Pandey, AHV is strategic for the company given that it is very sticky. We believe this proliferation of AHV by NTNX sooner or later will end its OEM relationship with Dell.
Nutanix provides an enterprise cloud platform that consists of software solutions. The company's solution allows its customers to virtualize various clouds - private, public, distributed - into one cloud enabling enterprises to choose the right cloud for the right application. The company's enterprise cloud platform converges compute, virtualization, storage, networking, desktop, governance and security services in one integrated solution. Acropolis is the foundation of the company's enterprise cloud platform. Acropolis is comprised of four foundational components: Virtualization, Enterprise Storage Capabilities, Platform Services, and Networking Services.
Summit Insights Group LLC (SIG), founded by Srini Nandury in 2018, is a fundamentals-driven, technology-focused, equity research boutique. SIG analysts cover Semiconductors, Semicap Equipment, Enterprise & Application Software, and IT Hardware & Storage companies. The firm also provides insight into adjacent areas such as Mobile and Internet Technologies.
SIG provides deep, rigorous technology and financial analysis, unlike Wall Street analysis that is mainly driven by financial models. SIG principal analysts are known for their extensive industry experience, which we believe is essential to evaluate technology industry stocks. Each principal analyst has at least 5 years of hands-on industry experience prior to their tenure in equity analysis. SIG analysts are known for making non-consensus prescient stock calls.
SIG analysts follow more than 100 stocks regularly in the areas of Enterprise and Application Software, Storage, Networking, Security, Flash Memory, Big Data, Storage Networking, SSD and Processors. SIG analysts have access to the managements of both public and private companies to verify factual items from public comments or published statements, buttressing the integrity of our analysis. SIG analysts regularly attend industry conferences and visit startup companies to understand technology trends driving the industry. SIG is not a broker dealer, hence it does not have investment banking or trading conflicts. At SIG, we value integrity, our client interests and confidentiality above all else.
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