Nutanix and the ‘messy middle’ of the subscription software model>
Computing – Ohn Leonard
Moving to a new licensing model always carries a degree of risk. For hyperconvergence vendor Nutanix, the change to a subscription software vendor was more radical than for the many software vendors that have taken that route, in that Nutanix went public three years ago as a hardware vendor. It is, perhaps, the only enterprise vendor to go directly from hardware to subscription software, according to VP investor relations Tonya Chin. The company moved to the software subscription model two years ago and finally stopped selling hardware appliances altogether in 2018.

Speaking at a media briefing during the .NEXT event in Copenhagen this month, Chin put the dip down to a number of factors. First, revenues for a three-year subscription contract will be realised three years later with than an equivalent up-front deal, so in the short-term income will inevitably decline. Chin forecasts that company will get through its âmessy middle’, becoming a fully-fledged subscription software company within the next two years.
Link: https://www.computing.co.uk/ctg/news/3083008/nutanix-and-the-messy-middle-of-the-subscription-software-model?utm_source=Adestra&utm_medium=email&utm_content=&utm_campaign=CTG.Daily_RL.EU.A.U&im_edp=14