NTNX: Baron's article


In addition to the William Blair analyst who thinks the price target should be $34, Jefferies analyst James Kisner wrote:

Nutanix believes a key differentiated capability of the inclusion of AHV in its software stack is the ability to balance storage hotspots. Nutanix can observe SSD utilization within a particular node and migrate virtual machines to make use of unused capacity in other nodes. Having an in-house hypervisor also allows Nutanix to able to do rapid prototyping and deploy new features because they aren’t relying on a third party’s hypervisor for updates and bug fixes. For example, NTNX is developing a new storage I/O path that leverages some of the unique properties of NTNX’s storage controller to create “vast improvements” in performance and efficiency. Nutanix is planning to offer a variety of new virtualization features over the next couple years. Nutanix can also more rapidly leverage new hardware innovation as well; the company pointed to being able to leverage offload capabilities on NICs as an example.

Looks like analysts are now starting to recognize that NTNX is undervalued…



Thanks Chris.

I am a bit concerned that with AMZN (the leader in the cloud) choosing VMWare and MSFT going with their Azule product…that the third largest cloud in GOOG…may make a play for NTNX.

Some might relish the thought but that would completely blow the “Switzerland” narrative that I had believed was a powerful selling feature…any appliance and any cloud…Nutanix works with all.

2018 is a really big year IMO…they need to continue the transformation to pure software model and stay at least even with VMWare, if not better.

This TAM is so large and growing that it doesn’t have to be a winner take all…just stay in top 2.

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