earnings announcement<\/a> to reveal that Red Hat has signed $500 million worth of deals for its virtualization portfolio in the last two years. Ramaswami said Nutanix believes Red Hat is definitely a competitor, but that as its virtualization platform relies on Kubernetes that makes migrations more complex than moving from VMware to Nutanix.<\/p>\n“We have not seen many successful migrations from VMware to Red Hat,” he said.<\/p>\n
Ramaswami offered investors a new take on component shortages by saying the availability of CPUs, not memory, has been Nutanix’s biggest concern.<\/p>\n
“This is driving higher prices and lengthening lead times for servers,” he told investors. “Thus far, longer lead times largely driven by lack of CPU availability have been a significantly bigger challenge for us than pricing.”<\/p>\n
Memory shortages are now starting to bite.<\/p>\n
“Through the latter half of Q2, we began to see that the challenging supply environment for CPUs, memory, storage and other components is delaying our customers’ ability to procure servers from our hardware partners in order to run our software,” the CEO said. “We did not see this as a meaningful driver of our results in our fiscal Q1… later in Q2, we did start to see it become more pronounced to a greater extent than anticipated, and expect it to continue through the rest of the fiscal year.”<\/p>\n
That’s a problem for Nutanix because the company can’t recognize some revenue for software sales until customers’ hardware arrives. The company therefore reduced its revenue guidance for the full year from between $2.82 billion and $2.86 billion to between $2.80 billion and $2.84 billion.<\/p>\n
Investors clearly liked something about either Nutanix’s results or the AMD tie-up because they sent the company’s shares up by almost 20 percent in after-hours trading. \u00ae<\/p>\n","protected":false},"excerpt":{"rendered":"AMD has struck another chips ‘n’ stock deal, this time with software-defined datacenter player Nutanix. The deal means…\n","protected":false},"author":2,"featured_media":449337,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[554,733,4308,86,56,54,55],"class_list":{"0":"post-449336","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-technology","12":"tag-uk","13":"tag-united-kingdom","14":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/449336","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=449336"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/449336\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/449337"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=449336"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=449336"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=449336"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}