The brand new Nutanix CEO remains undaunted by flat revenue from recurring subscriptions.
In an interview with The Register, Nutanix’s new CEO Rajiv Ramaswami has seemed to say that the company may introduce new bundles in mid-2021.
The company announced flat revenue for its second fiscal quarter of 2021. However, they saw an increase in annual contract value for Q2 2021. Ramaswami explained: “Customers like that our products are easy to operationalise and deploy, but we have a lot of products.”
Product bundles make it easier for Nutanix to sell, and for customers to buy
Nutanix sells a wide range of products. They offer hyper-converged infrastructure (HCI) software, cloud services (such as Desktops as a service, Disaster Recovery as a service, and cloud monitoring), and software-defined storage.
Nutanix customers are therefore looking for integrated packages, it would seem. This would be preferable to buying products and then integrating them themselves. Integrated product bundles would thus make it easier to buy and implement more of the company’s products at once.
Ramaswami told The Register that he expects to discuss details of this bundle approach at the company’s investor day in June 2021.
A silver lining behind flat revenue
For now, he’s pleased that the company yesterday posted Q2 revenue of $346.4m. “We delivered a strong quarter across the board, exceeding guidance on all metrics and continuing our momentum with key customer wins and solid execution,” he said in a press release.
That revenue figure was down $400,000 year-over-year, so effectively flat. But the quarterly ACV was up 14 percent and the annual number jumped 28 percent.
Nutanix execs express confidence about the future
Ramaswami is confident, despite the flat revenue. “We shortened contract terms because it drives better behaviour at Nutanix,” he said. He also feels the need to frequently re-engage with customers means Nutanix needs to continue adding value to its products. For example, this week they announced new anti-malware capabilities.
Duston Williams, CFO of Nutanix, also expressed a rosy view of the future. “We delivered record ACV billings with growth of 14 percent year-over-year, bolstered by the strength of our emerging products,” he said.
“We look forward to continuing to execute on our transformation and are confident Nutanix is well positioned for long-term value creation.”