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Presenter Name
Date
We help our customers modernize their datacenters
and run applications at any scale, on-prem and in the
cloud.
1. Ritesh 2. Arindam 3. Lalatendu
2
Background
3
Corporate Level Strategies
Continually innovate and maintain technology leadership.
Invest to acquire new end customers
Continue to drive follow-on sales to existing end customers.
Deepen engagement with current channel and OEM partners and
establish additional routes to market to enhance sales leverage
Invest in rapid growth while remaining focused on our overall financial
health.
4
Focused Strategy
1. Continued AcceleratedShift to SubscriptionRecurring Revenue Model
2. Expanding Customer Base
5
Market Penetration Strategy
Technology Alliances:work closely with our technology
partners through co-marketing and lead-generationactivities
global sales force who directly interact with key IT decision
makers.
engage our end customers through our OEM partners, which
license our software and package it with their hardware, and
sell through their direct sales forces and channel partners.
6
Unrelated Diversification Strategy
Uber of cloud providers: A disseminated accountabilityand auditing
platform which is utilized to ensure client's information and furthermore
screen the real use of information in the cloud.
DesignConsultancy Program for Partners: As Nutanixhas a great eye for
design proven by in terms of dataand design, Nutanix makes things
much simpler than anyone in the industry. It can provide design service
to its partners and earn dividend on it.
7
Product Development
8
Evaluation of Current Corporate Level Strategies
SWOT (Strengths, Weaknesses, Opportunities, Threats)
STRENGTHS (INTERNAL, POSITIVEFACTORS) WEAKNESSES (INTERNAL, NEGATIVEFACTORS)
Nutanixhasprovenuser acceptancewith rapidgrowth, highNPSand
highrepeat sales.
Nutanixflexibilitythataccommodatesbroadrangeofcustomer
preferences for Hypervisor,server platformsanddeploymentmodels.
Benefit from a rapidlygrowingandsupportiveuserand partner
community.
Highlyvaluedone-clickHCI software upgradesdoesnot extend to
upgradesoffirmware on some-thirdpartyplatformson whichEnterprise
CloudOS isdeployed.
Some businesscritical applications,mostnotablythosebasedonRed Hat
Enterprise Linux(RHEL), are not certifiedby the operatingsystem or
applicationvendorforAHV, forcingcustomersto maintaintheir current
hypervisor
OPPORTUNITIES(EXTERNAL, POSITIVEFACTORS) THREATS (EXTERNAL, NEGATIVEFACTORS)
The market developmentwill lead to dilutionofcompetitorsadvantage
andenable Nutanix,Inc.to increase its competitivenesscompareto the
other competitors.
The new technologyprovidesanopportunitytoNutanix,Inc.to practices
differentiatedpricingstrategyin the new market. It will enablethe firm
to maintainitsloyal customers with great service andlure new
customers throughother valueoriented propositions
AdoptionofNutanixAHV trailsthe leadinghypervisorvendors,and
some customersthat have made a significantinvestmentinVMware
andMicrosoftELAs andtraininghavedifficultyjustifyingtheswitching
costs ofmovingto AHV
Growingstrengthsof local distributorsalsopresents a threat in some
markets as the competitionis payinghighermarginsto the local
distributors.
9
Mckinsey Matrix
10
Strategy canvas
0
1
2
3
4
5
6
Product features/capability System Scalability Simple Design/Customer
Experience
Broader Distribution
Chart Title
Vmware Nutanix Dell EMC
11
Share Price Comparison Chart
Nutanix
VMware
Nutanix
12
Revenue and Earnings
13
Nutanix OEM partners
14
VMware Flagship Product
15
Recommendations
Plan A:
Go ahead with OEM partnership with HP
and IBM
Take advantageof the client base of HP
and IBM
Increase marketing budget and generate
leads
Take VMware head-on and strive for
market duopoly
Timeline:- 3 years, Metrics: - at least 50 %
increase in revenue base
Plan B:
Get acquired/merged with any big
company like Google, Cisco who wants to
foray into cloud space, with cumulative
impact of heightened hybrid technology
and coupled with experience sales
personnel.
Get a good valuation and utilize their
disposable cash on R&D for next
generation products.
16
Probable Acquisition Valuation
Cumulative impact of heightened hybrid technology and coupled with
experience sales personnel could lead to an improvement in sales for the
combined cloud sales.
Nutanix Current Intrinsic Value: $6 bn
Synergy Premium: 20% of Total ($4 bn with Google Cloud(14 bn$ + 6bn$))
Total Premium: $10bn
Thank You

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Nutanix overview and future recommendation

  • 1. Presenter Name Date We help our customers modernize their datacenters and run applications at any scale, on-prem and in the cloud. 1. Ritesh 2. Arindam 3. Lalatendu
  • 3. 3 Corporate Level Strategies Continually innovate and maintain technology leadership. Invest to acquire new end customers Continue to drive follow-on sales to existing end customers. Deepen engagement with current channel and OEM partners and establish additional routes to market to enhance sales leverage Invest in rapid growth while remaining focused on our overall financial health.
  • 4. 4 Focused Strategy 1. Continued AcceleratedShift to SubscriptionRecurring Revenue Model 2. Expanding Customer Base
  • 5. 5 Market Penetration Strategy Technology Alliances:work closely with our technology partners through co-marketing and lead-generationactivities global sales force who directly interact with key IT decision makers. engage our end customers through our OEM partners, which license our software and package it with their hardware, and sell through their direct sales forces and channel partners.
  • 6. 6 Unrelated Diversification Strategy Uber of cloud providers: A disseminated accountabilityand auditing platform which is utilized to ensure client's information and furthermore screen the real use of information in the cloud. DesignConsultancy Program for Partners: As Nutanixhas a great eye for design proven by in terms of dataand design, Nutanix makes things much simpler than anyone in the industry. It can provide design service to its partners and earn dividend on it.
  • 8. 8 Evaluation of Current Corporate Level Strategies SWOT (Strengths, Weaknesses, Opportunities, Threats) STRENGTHS (INTERNAL, POSITIVEFACTORS) WEAKNESSES (INTERNAL, NEGATIVEFACTORS) Nutanixhasprovenuser acceptancewith rapidgrowth, highNPSand highrepeat sales. Nutanixflexibilitythataccommodatesbroadrangeofcustomer preferences for Hypervisor,server platformsanddeploymentmodels. Benefit from a rapidlygrowingandsupportiveuserand partner community. Highlyvaluedone-clickHCI software upgradesdoesnot extend to upgradesoffirmware on some-thirdpartyplatformson whichEnterprise CloudOS isdeployed. Some businesscritical applications,mostnotablythosebasedonRed Hat Enterprise Linux(RHEL), are not certifiedby the operatingsystem or applicationvendorforAHV, forcingcustomersto maintaintheir current hypervisor OPPORTUNITIES(EXTERNAL, POSITIVEFACTORS) THREATS (EXTERNAL, NEGATIVEFACTORS) The market developmentwill lead to dilutionofcompetitorsadvantage andenable Nutanix,Inc.to increase its competitivenesscompareto the other competitors. The new technologyprovidesanopportunitytoNutanix,Inc.to practices differentiatedpricingstrategyin the new market. It will enablethe firm to maintainitsloyal customers with great service andlure new customers throughother valueoriented propositions AdoptionofNutanixAHV trailsthe leadinghypervisorvendors,and some customersthat have made a significantinvestmentinVMware andMicrosoftELAs andtraininghavedifficultyjustifyingtheswitching costs ofmovingto AHV Growingstrengthsof local distributorsalsopresents a threat in some markets as the competitionis payinghighermarginsto the local distributors.
  • 10. 10 Strategy canvas 0 1 2 3 4 5 6 Product features/capability System Scalability Simple Design/Customer Experience Broader Distribution Chart Title Vmware Nutanix Dell EMC
  • 11. 11 Share Price Comparison Chart Nutanix VMware Nutanix
  • 15. 15 Recommendations Plan A: Go ahead with OEM partnership with HP and IBM Take advantageof the client base of HP and IBM Increase marketing budget and generate leads Take VMware head-on and strive for market duopoly Timeline:- 3 years, Metrics: - at least 50 % increase in revenue base Plan B: Get acquired/merged with any big company like Google, Cisco who wants to foray into cloud space, with cumulative impact of heightened hybrid technology and coupled with experience sales personnel. Get a good valuation and utilize their disposable cash on R&D for next generation products.
  • 16. 16 Probable Acquisition Valuation Cumulative impact of heightened hybrid technology and coupled with experience sales personnel could lead to an improvement in sales for the combined cloud sales. Nutanix Current Intrinsic Value: $6 bn Synergy Premium: 20% of Total ($4 bn with Google Cloud(14 bn$ + 6bn$)) Total Premium: $10bn