No. of Recommendations: 44
The Public clouds are not going to co-opt the market for multi-cloud. Want proof? VMWare is partnered with AWS, Nutanix is partnered with Google. Azure partners with no one because Microsoft is already in practically every enterprise so they do not need a partner.

There are fascinating articles on how the Nutanix partnership may be the thing that pushes Google back from a third horse in a two horse race, back into a three horse race, and doing so by not being a “me too” product.

The Nutanix and Google deal also includes Nutanix’s Sherlock (still in development) that pushes the data center, from the center, to the cloud, and then to the edge of every IoT, combining with Google’s best in class machine learning.

I was going to do a more in detail post, itching to do so, but I gotta get our roller skiing. The above should be enough for those interested to start looking themselves, and to make the point clear that the cloud titans will not be co-opting the market anymore than Amazon co-opted Twilio when Amazon was giving away for practically free last year its own contact center software. Remember that bit of panic?

As for VMWare, it is a duopoly. And the latest and greatest marketshare numbers show that Nutanix is #1 in marketshare despite the fact VMWare has an enormous existing customer base to sell into. It is as if Apple were the equal to Microsoft in the PC era and the two battled it out. That is what we have going on here.

Finally, this Xi thing is a risk. It is an entrepreneurial risk. However, if successful, we are talking billions of dollars and today’s share price will be a pittance. I do not think I am making the case to big to say that Xi, and then Sherlock (but lets not get ahead of ourselves) makes Nutanix into a large enterprise software titan, the equivalent of say VMWare (when younger but dominant) or say a Salesforce about 5 to 8 years ago.

That is, if successful of course. If not successful there is still HCI and much growth there but I do not really know. I do know a successful Xi will be bigger than anyone is anticipating, and that Sherlock (that few are talking about) literally makes the world the data center, all controlled with one button on one interface.

At least that is the vision. What I find telling is how the press talks about it. You can read a lot into these things.

Look at some of the articles. The latest, “IBM challenges Nutanix in multi-cloud...”. Not challenged VMWare, or Cisco, or AWS, or Azure, or simply IBM offers its multi-cloud product. Nutanix was specifically referenced, and the only company referenced as the comparator.

With the Google/Nutanix partnership, I am seeing more articles that make it sound like Nutanix is in the driver’s seat, and Google needs Nutanix more than the other way around. In fact, one article I am reading that discusses that this Nutanix partnership may be key to moving Google back into the horse race (As discussed above) concludes with, “it depends on how committed Nutanix will be to the partnership...but Nutanix has a lot of incentive to be committed.”

These articles discuss Nutanix as the company moving things, not Google, not AWS, not VMWare.

On NPI there are at least two threads I posted since last night discussing Nutanix (I think I linked to one here). But there is another one on Nutanix’s acquisition of Frame.

VMWare is having a tizzy because Nutanix bought Frame! Why? Well, about this time last year VMWare incorporated Frame as their video desktop software. A partnership that Forbes hailed as very telling as to the value Frame brings, and that VMWare would not build in-house. I know that AutoCad uses Frame and they say that THERE IS PRESENTLY NOTHING ELSE THAT CAN DO WHAT FRAME DOES. Thus why VMWare partnered with them.

Well guess what? Nutanix just bought Frame out from under VMWare! Frame probably refused to be sold to VMWare, which is a larger part of the Dell conglomerate, but Nutanix is still basically a large start-up and an excellent environment for the Frame team to do what they do, and with stock that has potential for large appreciation (relative to VMWare).

Now VMWare will be paying a toll to Nutanix with every Frame instance run through VMWare system.

This is both scary and fascinating. I think I am giving the flavor here that there is risk, but this Xi product (and all its supporting pieces and vision) if rule breaking anyways (revolutionary? I do not understand it well enough to say so) will be bigger than anyone thinks if successful, definitely changing the database landscape, and then they get to Sherlock, all in the background of HCI itself just starting to hit the mainstream, chasm crossing part of the S curve.

A tad bit of enthusiasm along with anxiety. That is what it is like to be an entrepreneur, and that is what Nutanix still is, and that is what investing in Nutanix at this point is as the stock has collapsed by 40% or so, much further than the general market.

Now I have to get out roller skiing. Not something you see everyday down here in the south! I get lots of wide eyes of wonder staring upon me, but all friendly.

You can check out my OMG Frame thread on NPI. It is a short thread, but I think much of it is covered here in the context that I found useful.

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