Nutanix (NTNX) is a leading provider of cloud infrastructure selling hardware and software. Their product is called hyper-converged infrastructure or HCI. NTNX is packaging commodity hardware with arguably the industry leading software product for powering “the cloud”.
The HCI market is expected to grow like 50% for the next years.
NTNX is the market leader by a thin margin, but it has financially much stronger competitors. It also incurs losses that don’t seem to become smaller. Among the competitors are Dell, VMware, Cisco, and Microsoft and online cloud vendors like Amazon and Google.
Especially VMware is gaining ground and the combined market share of its owner Dell and VMware is bigger than the one of Nutanix.
Dell, like many other hardware companies, is also selling Nutanix software, which looks especially dangerous for Nutanix. Dell secures and grows market share with product features only the Nutanix software offers. At the same time VMware incorporates these features into their own offering. And somewhere down the road Dell is going to replace Nutanix with VMware incrementally.