NTNX - Affected by cloud slow down?

So I think we can safely say that cloud infrastructure is slowing down. Intel, Micron, ANET, Nvidia etc. NTNX has moved away from hardware but ultimately their software is tied to new hardware sales for the most part. Do you guys think that NTNX is going to have a slow down along with the cloud infrastructure market or are they providing enough of a different service?

Curious to hear everyone’s thoughts.

-e

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Ethan,

Your the third person to bring that up today, and the market is saying the same thing at low volume, thus with some panic but little conviction.

Since Nutanix has little to no exposure to cloud titans, to the extent the slow down is cloud titans, the answer is no.

Since Nutanix has little to no exposure to China, to the extent the slow down is China, the answer is no.

If the slow down will slow down private and hybrid cloud/data center growth the answer is yes.

I don’t have any information on this latter aspect. It does not make sense given “digital transformations” taking place in corporate America as a do or die transformation. But what slows down one sector often is not limited to that sector.

It is a worthwhile question to ask. I have seen no information in regard to slow down in private data centers/hybrid in relations to HCI. In fact just the opposite. But others may have more relevant information.

Tinker

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Hi ethan, I have no inside information, but I’d refer you to the post just before yours. As an aside, in discussing Nvidia, he writes:

As a side note, my company is seeing a revenue decrease. We have cut back on several hardware purchases. Yet we are still paying on our subscriptions every month.

Nutanix sells subscriptions, so I would guess that while new sales could slow, no one will cancel their software subscription unless they go out of business.

Best,

Saul

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