Nutanix this year used numerous acquirements with its new product lines, prepared partners and customers work from infrastructure pioneer. This all done to showcase itself as a software company, and later went on by introducing a new financial structure to emphasize deeply into the change.
Popularly known for its Hyper-converged infrastructure pioneers, Nutanix executives are in the process of making it clear that they only have one big goal that is to believe it is a software firm instead of a hardware appliance provider alone.
During the company’s fourth fiscal quarter 2018 earnings call, executives came out with an outlined antagonistic plan to ostracize its hardware sales while motivating the clients and public to purchase the company’s technology as software and increase their subscriptions. Later the investors were told in the fiscal quarter of 2019 that San Jose-based Company will have to completely change the way it reports and to emphasize its shift to a software business instead. Nutanix started its first fiscal quarter of 2018 to start disclosing software sales similar to how any other software vendor would do as stated by William.
Now the Sales revenue will be divided into four parts.
• The first will consists of a pass-through hardware, similar to Nutanix reporting style earlier pass-through hardware sales, according to Williams.
• The second will consist of a non-portable software sales or operating system which is delivered on a hardware platform, either by Nutanix or by an OEM partner, or by a channel partner, he continued.
• The third will be subscription software which will include renewable software licenses, both term-based and cloud-based, added Williams
• The fourth will be professional oriented services sales related to Nutanix’s products, he concludes.
Nutanix is also taking up enterprise licensing agreements, with all customers considering one or two exceptions with the expectations to purchase term licenses and as a company, we will avoid sweltering the ground and pulling sales from the future,” he augments.
Most of Nutanix’s recent achievements have or will have to become important parts of Nutanix’s shift in the direction of being known as a software company as claimed by the company itself.
For all of fiscal 2018, Nutanix reported a GAAP net loss of $297.2 million, equated to its loss of $379.6 million, or $2.96 per share in fiscal 2017 with their Net loss for the year on a non-GAAP basis was $101.5 million, equated to last year’s loss of $120.7 million, or 85 cents per share.