Quick Overview Summary

  • During its fiscal Q3 2026 earnings call for the period ending April 30 (held Wednesday), Nutanix positioned public cloud as a temporary mitigation measure againstrising component costsand supply chain constraints. Nutanix President and CEO Rajiv Ramaswami said, "There's no doubt that server constraints—enterprise server constraints—are causing customers to look more at public cloud."
  • The virtualization vendor's revenue grew 10% year-over-year to $703 million, with annual recurring revenue (ARR) exceeding $2.4 billion, benefiting fromdisgruntled VMware customersmigrating workloads to the Nutanix Cloud Platform and clusters running on hyperscale infrastructure. Chipmaker Broadcom acquired VMware three years ago for$61 billion。
  • "This is exactly where most of our customers are coming from or moving to," Ramaswami said. "They're moving to Nutanix, Red Hat, Microsoft, and some of them directly to public cloud. That's the competitive landscape, and it hasn't changed much over the past few quarters."

Deep Insights

The turmoil in the VMware ecosystem has unlocked a vast pool of potential customers for vendors offering alternatives to the mainstream hypervisor. Meanwhile, the ongoing chip shortage, which continues to drive up prices for PCs, servers, and CPUs, has opened another avenue of opportunity for Nutanix.

Earlier this year, Nutanix partnered with Pure Storage to connect its cloud platform with FlashArray storage arrays. Alastair Cooke, Research Director for Hybrid Cloud and Infrastructure at Futurum Group, noted in ablog post in Januarythat this integration "directly challenges VMware's long-standing dominance in enterprise virtualization."

Nutanix plans to expand storage options to includeDell PowerStore (expected later this year)and NetApp ONTAP—the latter being part of anagreement signed last month. The company alsodeepened its partnership with Lenovo in April, including integrating Nutanix Cloud Infrastructure with Lenovo's ThinkSystem storage solutions.

These storage initiatives provide cost-sensitive customers with a path to address component shortages.

"Most data center infrastructure today is based on external storage and servers running traditional hypervisors," Ramaswami said. "Our support for external storage platforms is simplifying migration from these environments to Nutanix without requiring major hardware changes."

As Nutanix rolls out these integrations andadds agentic AI capabilitiesto its core platform, the company is reshaping its channel to drive migrations. In April, it launched amulti-tenant cloudfor service provider partners, along with onboarding incentives for providers leaving VMware. The upgraded channel hub, Nutanix Partner Center, went live inOctober 2025。

The company employs a three-tier go-to-market strategy, relying on partners to lead the mid-market push. "There are more customers at lower tiers than at higher tiers," Ramaswami said Wednesday. "From a distribution perspective, we're seeing success across all tiers."