Shares of storage and compute upstart #Nutanix (NTNX) are up 4 cents at $30 despite a negative piece today from Summit Redstone’s Srini Nandury, who reiterates a Sell rating on the stock, predicting heightened competition from privately held #Dell. “Competition is closer than many believe,” writes Nandury.
He cites in particular an announcement this week by Dell, at an event held by Citrix Systems (CTXS), of new versions of its “VxRail” server systems.
Nutanix is the “market leader” in what’s called “hyper-converged infrastructure,” or HCI, and has “single-handedly pioneered” its adoption, in enterprise, writes Nandury.
Dell has had an agreement to resell Nutanix’s equipment, but one of the worries has always been that Dell could also be a competitor. In my interview with Dell’ s CFO, Tom Sweet, back on December 8th, Sweet told me that “Nutanix has been a good partner for us,” but he also added that “We try to offer our customers choice,” and so, “We also provide VXrail and VXrax,” home-grown Dell products.
http://www.barrons.com/articles/BL-TB-53809
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