Nutanix Shifts Focus to External Storage, AI Amid Supply-Chain Challenges
Nutanix is pivoting toward external storage and artificial intelligence as key growth areas amid ongoing supply-chain challenges. The company's strategy allows customers to use Nutanix software with existing third-party servers rather than requiring a full shift to hyperconverged infrastructure (HCI). Public-cloud offerings, including NC2, are also expanding into migration, disaster recovery, and capacity management. Despite these growth opportunities, Nutanix faces headwinds in fiscal 2027 due to rising server prices—up four- to fivefold year-over-year—and extended delivery times. These factors may delay customer projects, increase future-start orders, and slow renewal-cohort growth. The company is investing heavily in AI infrastructure and cloud-native products like Kubernetes and database automation. Nutanix CEO Rajiv Ramaswami emphasized the broader platform's ability to operate on-premises and across multiple public clouds while supporting both built-in and third-party storage solutions. CFO Rukmini Sivaraman noted that easing supply conditions or stronger adoption of external storage could improve results beyond current expectations.
Tickers: $NTNX
Topics: AI growth cloud infrastructure external storage supply chain issues