Saul,
Tamhas responded by saying it depends which tier of the company is satisfied. Upper management because of lower costs may be happy but DB managers may not be.
I think that is not the case and the anecdotal info Tamhas relayed is simply an opinion like you see on an Amazon product rating. I just bought a product w 35 5 star ratings and 3 1 star ratings. The product is awesome so the 1 stars dunno.
One needs to look holistically to determine the truth. The unrefuted fact is Nutanix has grown from 0 to $800million in sales in 6 years. From 0 to ~8000enterprise customers in 6 years. In the age of Arista and Nvidia and GB not just MB internet connections corporations will not install a product that materially slows down access to computing resources. Speed is critical and time a very costly commodity.
As such, NTNX would not have its growth rate if that were the case. I know that I was offered $5 a month to keep my eyes lid T1 line to my home office. Once was a luxury item. It gives 1.5 MB sec. I said nay, tear it out or whatever they needed to do. Speed plus reliability is everything.
So I do not believe the scenario Tamhas has heard except maybe in niche circumstances.
However, Mauser brought up interesting numbers this morning as to how losses have grown faster than revenues. That is something that is a conundrum.
I say this because NTNX is a PR machine. Goldman lent them 70 million ore IPO and Wall Street banks love them. I do not like this sort of hype. Let the business speak for itself, market to your customers BUT STOP MARKETING TO INVESTORS!
Burt, on the other hand thinks NTNX is making fine progress to profitability. I’ll let his two write ups or three may speak for themselves.
The one thing I conclude is that Nutanix did not grow so fast because of an inherently flawed product. On the other hand it also has not been able to monetize its growth not its tremendous customer satisfaction rating.
To put it in perspective ANET scores 16 on the ANET Promoter score. That is considered excellent vs in the 90s for NTNX. Yet we know. ANET is pummeling entrenched competition and doing so while printing cash.
To me it is a conundrum. I think what is probably happening is that there may be some color of truth to what Tamhas heard and NTNX product works for certain aspects of the enterprise data center, but not for all aspects. Thus limiting its utility in contrast to the NTNX Story.
Also is true though, is NTNX is rewriting its story and (1)moving to an all software model (and this change is made solely to impress investors because as a business decision it was basically more software than ANET is = does not materially change anything but dress up the numbers) and (2) NTNX is making it clear that its future is in new products that are aspirational and visionary and we have no way to understand how they are being adopted at this point.
Thus NTNX is a flyer not suitable for me, it is a business that is not everything its narrative will have us believe(eg it’s cloud integration product is primarily just a better method of backing up and restoring data for emergencies but it has a pretty name and we are told other applications will be forthcoming some day but none specifically mentioned) it yet it’s sales growth is real so there’s is meat there as well.
I prefer companies that don’t “make it up with volume”in regard to cash printing ability. There needs to be some leverage. SHOP has leverage.
But my conundrum of thoughts on Nutanix as to how a company w a net promoter score that high cannot sell its product for enough money to monetize this delightful product. That does not make sense to me unless it does not offer enough value despite the delight it brings. Rut-ro.
Others can run the numbers like Mauser did.
Tinker