Nutanix IPO Blesses Hyperconverged Data Centers

Mitch Wagner

Nutanix's early investors and other stakeholders have extra reason to say TGIF, as Wall Street sent the company's IPO bouncing when it debuted Friday.

The Nutanix Inc. IPO popped big, trading at $33.78 on Friday, more than double its starting price of $16.

The IPO was a bit of a rocky road for Nutanix, which initially filed in December, but held off due to a soft market. The company later received an unusual $75 million loan from IPO underwriter Goldman Sachs & Co. Nutanix's initial IPO price was $11 to $13, but on Wednesday it increased the upper range to $15. And then Thursday the company upped the price tag to $16. (See Nutanix Seeks Financial Downpour From Long-Awaited IPO.)

Nutanix, founded in 2009, develops "hyperconverged" technology that combine storage, compute and virtualization in a single fabric of servers, eliminating the need for data center operators to run separate compute and storage networks and hire specialists to run each. Like so many technology trends, hyperconvergence popularity is driven by cloud adoption.

The IPO validates hyperconvergence as a data center technology -- not that it needed that validation, having already been blessed by customers and competitors. Dell Technologies (Nasdaq: DELL), Hewlett Packard Enterprise , Cisco Systems Inc. (Nasdaq: CSCO) and VMware Inc. (NYSE: VMW) all have their own hyperconverged products, as do startups SimpliVity and Cohesity. Nutanix customers include AT&T Inc. (NYSE: T), Best Buy, Toyota Motor Corp., Hyundai and Aflac.

Hey, Nutanix -- go out and have a couple of beers to celebrate. Order expensive microbrews. You can afford it.

Related posts:

— Mitch Wagner, Follow me on TwitterVisit my LinkedIn profile, Editor, Light Reading Enterprise Cloud

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
9/30/2016 | 4:13:20 PM
Nutanix are absolutely amazing. Their progress is huge. I am looking forward for more news.
Featured Video
Upcoming Live Events
October 22, 2019, Los Angeles, CA
November 5, 2019, London, England
November 7, 2019, London, UK
November 14, 2019, Maritim Hotel, Berlin
December 3-5, 2019, Vienna, Austria
December 3, 2019, New York, New York
March 16-18, 2020, Embassy Suites, Denver, Colorado
May 18-20, 2020, Irving Convention Center, Dallas, TX
All Upcoming Live Events
Partner Perspectives - content from our sponsors
Sports Venues: Where 5G Brings a Truly Immersive Experience
By Peter Linder, 5G Evangelist, North America, Ericsson
Multiband Microwave Provides High Capacity & High Reliability for 5G Transport
By Don Frey, Principal Analyst, Transport & Routing, Ovum
All Partner Perspectives