The Channel logo


By | Chris Mellor 3rd October 2016 10:52

Nutanix, yesssss: Fist-pumping breaks out everywhere storage IPO wannabes are found

Share option boost prompts exec bliss

Comment There’ll be a spring in the executive offices of Cohesity, Rubrik, Tegile and other storage startups this morning; senior managers will have checked Nutanix’s share price and have that rosy glow that comes when your prospects have suddenly brightened.

Hyper-converged market leader Nutanix IPO’d on Friday and, so far, it has been a triumph. The shares were priced at $16.00 and are now standing at $37.00 apiece, a 131 per cent raise, which makes Nutanix’s market capitalisation $5bn. This contrasts with Pure Storage, which is valued at $2.66bn.

Of course it may not last. The next IDC and Gartner reports on the hyper-converged market may put Dell conclusively in the lead. But it won’t matter much if Nutanix’s revenue growth rate is still high. It is not in the same position as Pure is in the AFA market, with well-established incumbents and their generation 2 and 3 all-flash array products.

Nutanix’s IPO was criticised for having the initial price set so low. That looks to be a shrewd stroke now, as investors saw lots of upside and plunged in to buy stock. It means that other high-growth storage startups can be more confident about their own prospective IPOs, and Tegile comes instantly to mind, followed by Cohesity and Rubrik. Then there is Tintri and possibly others queuing up behind.

We could see some additional storage IPO S1 filings being made in the next few months as CEOs and their boards get in conversations with their financial advisors. It's October, and winter is coming, but they'll all want a Nutanix spring in their steps too. ®


You too, could be part of the magic. All you need are a few hundred thousand dollars and some top engineering and developer talent. Cmon, check the back of your sofa/settee/chaise/deck chair. Here's Part One and Two of Sysadmin Blogger Trev's handy guide.

comment icon Read 3 comments on this article or post a comment alert Send corrections


Frank Jennings

What do you do? Use manual typwriters or live in a Scottish croft? Our man advises
A rusty petrol pump at an abandoned gas station. Pic by Silvia B. Jakiello via shutterstock

Trevor Pott

Among other things, Active Directory needs an overhaul
Baby looks taken aback/shocked/affronted. Photo by Shutterstock

Kat Hall

Plans for 2 million FTTP connections in next four years 'not enough'
Microsoft CEO Satya Nadella


Suit-and-tie-wearing man tries to meditate, take deep breaths in faux yoga pose. Photo by Shutterstock
Emotional intelligence, not tech skills, is the way to woo suits
League of gentlemen poster - Tubbs and Edward at the local shop. Copyright BBC
One reselling man tells his tale of woe