Nutanix Challenges VMware to PoC Battle, Launches Xi Cloud Services

Nutanix posted better-than-expected revenue and rolled out the long-awaited Xi Cloud Services on Tuesday. The company reported a first quarter fiscal 2019 non-GAAP net loss of 13 cents a share, while Wall Street expected a net loss of 27 cents a share as it transitions to a subscription-software business model. It posted revenue of $313.3 million, a 13.7 increase year over year, which also beat analysts’ estimates of $305.3 million. Software and support revenue reached $280.7 million, growing 44 percent year over year from $194.7 million in the first quarter of fiscal 2018. And software and support billings grew 50 percent year over year to $351 million, compared to $234.5 million in the first quarter of fiscal 2018. “Notably, subscription revenue increased 104 percent year over year as we shift our business to an increasingly subscription-based consumption,” CEO Dheeraj Pandey said on the conference call. He also challenged rival VMware to a dual, err, a proof-of-concept (PoC) battle.