Nutanix recently organized a live conference call with customers from the public and private sectors to discuss why they chose Nutanix to modernize their IT infrastructure. In short, it’s back to the basics on why customers continue to pick and stay with Nutanix. The call revealed what’s driving growth in our customer base as we steadily progress toward a subscription model.
Nutanix ended Q2 FY’19 with 12,410 end-customers, adding 920 new end-customers during the quarter. The number of customers with at least $1 million in lifetime spend reached 779 during Q2 FY’19, growing 44% year-over-year. Six of our customers purchased at least $5 million of products and services during the quarter.
The four customers on our March 12 call shared their Nutanix journey and how they intend to continue to expand their use of Nutanix solutions. They explained the simplicity, scalability and cost-saving benefits of using our Nutanix Enterprise Cloud Operating System, which includes AHV, the license-free hypervisor that virtualizes enterprise data centers to operate in the hybrid and multi-cloud world.
“It’s been a great journey…very positive so far, and we just continue to find new uses for it,” said Bob Love, director of IT services at Bottomline, a business payment automation technology company with offices across the U.S., Europe and Asia-Pacific.
He first chose Nutanix in 2013 to deliver virtual desktops to his global consumers and developers. He soon moved email, financial services, and other critical business needs on to Nutanix. It’s lowering his administrative overhead and giving his team the chance to grow into new areas within the business.
“These things have all become a launching point for some of my team, in their careers,” he said.
On the conference call, Bob was joined by Ashley, an IT service delivery manager at a major U.S. defense contractor and industrial corporation; Doug, a systems architect at a large federal government agency who is also one of Nutanix’s largest customers; and Steve, an IT director and an operator of one of the largest clinical laboratory networks in the world. Click here to listen to the entire Nutanix customer call.
Federal Government Agency Goes All In With AHV
Doug helped a large federal government agency choose Nutanix instead of traditional SAN technology. His infrastructure once required three system admins but is now managed by one, freeing the other two to focus on applications. He said tools like Nutanix Prism let him manage all his clusters through one single pane of glass. Acropolis with built-in AHV saved him from paying for a separate hypervisor. He also likes the built-in encryption and security tools, which he said help keeps his systems up to date with security requirements.
Doug exemplifies a customer moving beyond Nutanix Core to Enterprise or Essential products.
“All those tools have been great,” Doug said. “We’re actually looking forward to a couple of new tools. Ones that monitor our network and allow us to automate our build processes.”
He started with AHV back when it first came out. “We’ve gone all in with AHV…across the board,” Doug said. “We like the simplicity and it’s been incredibly reliable for the last 6 years. It’s been pretty rocksteady.”
Clinical Laboratory Networks Shifts to Virtual-First IT
Steve began using Nutanix in 2012. He talked about running their entire private cloud on Nutanix, including 5,000 virtual machines.
“Our strategy internally is to run everything in a virtual-first mode, which means that all new applications and workloads that come online are targeted on top of Nutanix technology,” he said.
As hybrid clouds evolve, Steve’s job is to determine whether to run applications in a public cloud or on-prem.
“We continue to target a significant amount of our workloads to run on-premise on top of Nutanix technology,” he said. “By the end of the year, it’s going to run all of our private cloud. It’s in every corner of our business operations, supporting all of our different workloads.”
Before moving to HCI, Steve had to ask for many millions of dollars to buy new storage, based on non-certain predictions. “Now with hyperconverged, it’s very easy,” he said. “We’re buying small increments based on demand that we can very clearly articulate, and it’s much easier for us to get the money we need to grow things when the time comes. It makes all those folks very eager to partner with us because they understand exactly what it is that we’re buying as an organization.”
U.S. Defense Contractor – Making Legacy IT More Agile
Ashley said her legacy IT platform required quite a bit of labor to keep up and running, but once they deployed the Nutanix HCI solution, “we were able to move light years into a new direction.”
She said Nutanix provided a smooth migration for her applications and offers ease of scale. Six years later, she’s now managing virtualization and all of their virtual machines and systems within the Nutanix platform.
“Often times we hear solutions being touted as all-in-one plug and play,” she said. “But when you dig into the nuances and the details, it doesn’t end up being all that easy. Nutanix ended up, in fact, being that easy.”
Ashley said they’ve only dipped their toe in the hyperconverged pool so far, but she’s quite eager to know, “how can we get even better, faster and more agile?”
Bottomline – Customer Service is a Shared Value
Bob said he knew our purpose-built HCI technology was disrupting the IT industry, but that wasn’t the only reason he chose Nutanix.
“What really made the decision for us was actually getting to know Nutanix and the people,” he said. “It goes above and beyond just the technology, and that’s what really set Nutanix apart for me,” he said.
Bob explained that our two companies have a shared value of customer service. He said Nutanix is devoted to making Bottomline successful, which in turn makes Bottomline’s customers successful.
Bob’s praise really resounded with me because businesses thrive or die by customer sentiment. Nutanix made superior customer service a company tenet when it launched nearly a decade ago. We value listening closely, owning problems and providing solutions quickly. Across the last five years, Nutanix has averaged a 90 Net Promoter Score (NPS) — showing its strong conviction to helping customers thrive.
Ashley echoed Bob’s sentiment. “Everyone was constantly checking in, staying in touch, looking for ways to help,” she said, describing her company’s deployment of Nutanix. “Having this team support us through what was frankly a risky and concerning transition — we were moving so far in a new direction — made the deployment that much easier.”
Further, our ever-improving product portfolio is inspiring them to move more of their business from beyond our core to our essential and enterprise products.
Overall, I was moved by the enthusiasm and conviction of these four customers. They were generous and genuine. They prepared and shared their precious time and insights so we could all learn how they’re growing their business with Nutanix. They’re proof of the real benefits Nutanix brings to businesses and the people who run them.
Tune into Nutanix Investor Day 2019, Webcast from New York on March 20.
—Tonya Chin is vice president of corporate communications and investor relations at Nutanix.
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