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Who needs Dell? Nutanix tripled revenue last quarter

Nutanix hasn’t been sitting idle waiting for its Dell OEM deal to kick in.

The hyper-converged system vendor today said it exceeded $50 million in revenue for the quarter that finished at the end of July. Nutanix said it is picking up larger customers, with 29 companies buying more than $1 million of Nutanix products and services. That number has more than doubled since January, when Nutanix had 13 million-dollar customers.

Nutanix, which raked in $101 million in funding in January, has more than 600 employees.

Nutanix SVP of product management Howard Ting said the vendor’s revenue more than tripled from the second calendar quarter of 2013 to the second quarter of this year. He attributed that mainly to increased brand recognition and the addition of new versions of its Virtual Compute Platform. Nutanix systems include storage, networking, and compute in one box. It started with one configuration, but late last year added entry level and data center models.

“Expansion of our platform really helped,” Ting said. “Three years ago when we came out, we had one product with a set amount of CPU, memory and disk. One reason we lost deals was because of product market fit – the customer’s workload wouldn’t fit on that platform. We didn’t have a storage-heavy appliance for databases or applications with large datasets like Exchange then. Now, we have a whole range of appliances, ranging from branch offices to more heavy data workloads.”

Ting expects to get another big bump from Dell, which in June entered an OEM deal with Nutanix. Ting said the vendors are on track to begin selling Dell hardware with Nutanix software beginning in October. Dell hasn’t released product specs yet, but Ting said Dell will eventually have “a full spectrum of products” incorporating Nutanix.

Ting said Nutanix is nibbling away at larger storage vendors such as EMC, NetApp, IBM and Hewlett-Packard, who have reported declining sales in recent quarters. “Large companies are starting to feel the impact,” he said. “The disruption created by young companies like Nutanix is eating into their revenue.

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