Nutanix (NTNX - Free Report) has announced that it is expanding its existing partnership with network provider Juniper Networks (JNPR - Free Report) to accommodate the provision of simplified and automated network management, as well as advanced security, which is one of the primary requirements for enterprises in their transition to multicloud environment.
The strengthening of partnership reflects Nutanix’s active participation in supporting the enterprises’ digital transformation journey. Nutanix’s software-defined hyper converged infrastructure (HCI) solutions support multi-hypervisor and multi-cloud with unified management. Collaborative effort will include the integration of Juniper’s Contrail Enterprise Multicloud with APIs Nutanix (application programming interface) to provide better network visibility for virtual workload.
Prospects of Hyper converged Market Bode Well
Nutanix is a leading player in the HCI market, holding 18.9% market share as of the second quarter of 2018, per International Data Corporation (IDC). The HCI market is projected to grow rapidly in the long term.
Per IDC, revenues from hyper converged systems increased 78% during the second quarter of 2018. Market research firm, Gartner has placed Nutanix as a leader in its “Magic Quadrant for Hyperconverged Infrastructure” in February this year.
Strong Adoption of Solutions Drives Growth
Nutanix’s top line grew at a CAGR of 123.87% between 2013 and 2017. Strong adoption of its products and high customer satisfaction rate are expected to expand its customer base. This, along with recurring revenue stream, is expected to drive top-line growth.
The company’s solutions are primarily deployed in large and centralized datacenters. Its built-in hypervisor has been gaining significant traction as customers continue to select it as a low-cost alternative to other vendor offerings.
Nutanix’s cloud-based deployment strategy is a differentiator. The company’s upcoming Xi Cloud Services is expected to challenge Amazon Web Services (AMZN - Free Report) , Microsoft (MSFT - Free Report) Azure and Google Cloud in the Infrastructure-as-a-Service (IaaS) market.
Moreover, newly launched products — Nutanix Beam, Era, and Flow — are expected to help customers manage their hybrid cloud environment.
Nutanix currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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