Bright Lights, Big Payoff for Nutanix Channel Partners at .NEXT

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With significant solution announcements spotlighted by Nutanix during the .NEXT conference, Nutanix partners may be wondering what this means for their business and customers. Channel leaders Frank Czyz and Anar Desai along with channel SE leader Payam Farazi took time to put this news into perspective and help explain the potential payoff for Nutanix channel partners.

What were the significant announcements for partners this week?

Probably the most significant for customers is how Nutanix is continuing to extend the vision of a single Enterprise Cloud OS for customers’ datacenters.

First, Nutanix Calm will provide application automation and lifecycle management for Nutanix and public clouds, as part of the Nutanix Enterprise Cloud Platform. Calm orchestrates the provisioning, scaling and management of applications across multiple environments to make the entire IT infrastructure more agile and application centric.

Next, we also made announcements about Nutanix Xi Cloud Services, expected to be available in 2018, which will provide a native cloud extension to the Nutanix Enterprise Cloud Platform. Leveraging common infrastructure stack and single point of control, Xi Cloud Services will uniquely enable IT teams to extend their environment beyond traditional datacenter boundaries to an integrated cloud environment that can be instantly provisioned and easily configured.

Finally, the announcement of the Nutanix strategic alliance with Google Cloud, which will provide customers with great options to deploy and manage both cloud-based and traditional enterprise applications as a unified public cloud service by blending the Nutanix environment with Google Cloud Platform. These innovations further strengthen the ability for partners to focus on Nutanix as a platform that can satisfy and delight their customers’ needs.

How do these capabilities change the sales landscape for partners?

From one direction, partners are seeing long sales cycles with shrinking margins for legacy solutions that they’ve been traditionally selling. From the other direction, AWS and public cloud options are eating into their legacy sales, and translating into services revenue streams can be challenging and less profitable. There are growing cracks in their business model because of these dueling and intertwined forces.

The Nutanix announcements this week help our partners stay ahead of these forces with the only enterprise datacenter platform that’s built to operate in today’s multi-cloud world. This will enable partners to continue to grow, without cannibalizing what they’ve been delivering successfully to customers for a decade. And don’t forget the fact that Nutanix is really a software platform that can be run on the world’s most popular servers. Our partners have built very successful businesses selling HPE, Cisco UCS, and IBM hardware, and they can continue to do that with Nutanix. Our new capabilities allows partners to continue their sales relationships and success with those vendors.

How do partners grow their own businesses with these new capabilities?

First, these new enhancements will let the partners expand their sales to other areas of their customer’s IT. For instance, with Calm and Xi in the future, partners will be able to sell turnkey DR as a service on Nutanix that sets up in minutes.

Second, as Nutanix expands its “meet in the Channel” software offering for HPE, there will be robust professional services opportunities for partners to make money on integration, in a sense replacing integration typically done at the factory. Our partners continue to be that integration source, leveraging the Nutanix software to work across a diverse set of platforms. By being a software platform provider, Nutanix is perfectly geared for channel, who puts it all together with the customer’s hardware of choice. That’s where the complete solution really comes alive, and in the future you can expect that we’ll investigate what software companies we can partner with to continue building out capabilities.

One of our priorities going into fiscal 2018 is profitability for our partners. That’s really what we care about right now: making it easy for them to sell and making sure that it’s a rich engagement for them. We think that this is one of those areas where that profitability is actually going to continue to grow.

What’s the bigger picture for how Nutanix will contribute to partners success?
The beauty of Nutanix software, and the reason that partners migrate towards Nutanix (and lead with Nutanix), is because it’s a software solution focused on enterprise apps that can run across various hardware platforms, based upon customer choice. We believe that’s really key to sustainability in this market: having the flexibility for the customer to choose the hardware platform they prefer. Other companies jumping into this market are looking at HCI as a hardware platform/solution, not a software enterprise/application focused solution. This will allow our partners to continue to be truly and positively differentiated when they lead with Nutanix.

Last words?

For partners who couldn’t get to .NEXT, the upcoming .NEXT On Tour roadshow takes the messages to them. We’ve also embedded the payload announcements in our enablement; we put a lot of effort into our enablement, with multiple tiers depending on what’s needed to support the sale. It can be an overview, or it can be a much deeper hands-on. We’ll be bringing this to our partners who weren’t able to attend .NEXT over the coming months.

We couldn’t be more excited about the bright future ahead working with our partners to to drive continued mutual success.

Forward Looking Statements

This blog includes forward-looking statements, including but not limited to statements concerning our plans and expectations relating to product features and technology that are under development or in process and capabilities of such product features and technology, our plans to introduce product features in future releases, the implementation of our products on additional hardware platforms, strategic partnerships that are in process, product performance, competitive position and potential market opportunities. These forward-looking statements are not historical facts, and instead are based on our current expectations, estimates, opinions and beliefs. The accuracy of such forward-looking statements depends upon future events, and involves risks, uncertainties and other factors beyond our control that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: failure to develop, or unexpected difficulties or delays in developing, new product features or technology on a timely or cost-effective basis; delays in or lack of customer or market acceptance of our new product features or technology; the failure of our software to interoperate on different hardware platforms; failure to form, or delays in the formation of, new strategic partnerships and the possibility that we may not receive anticipated results from forming such strategic partnerships; the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; a shift in industry or competitive dynamics or customer demand; and other risks detailed in our Form 10-Q for the fiscal quarter ended April 30, 2017, filed with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of this presentation and, except as required by law, we assume no obligation to update forward-looking statements to reflect actual results or subsequent events or circumstances.

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