Nutanix IPO Blesses Hyperconverged Data Centers

Nutanix IPO trades at $33.74 midway through its IPO day Friday, more than double the $16 initial price.

Mitch Wagner, Executive Editor, Light Reading

September 30, 2016

2 Min Read
Nutanix IPO Blesses Hyperconverged Data Centers

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

About the Author(s)

Mitch Wagner

Executive Editor, Light Reading

San Diego-based Mitch Wagner is many things. As well as being "our guy" on the West Coast (of the US, not Scotland, or anywhere else with indifferent meteorological conditions), he's a husband (to his wife), dissatisfied Democrat, American (so he could be President some day), nonobservant Jew, and science fiction fan. Not necessarily in that order.

He's also one half of a special duo, along with Minnie, who is the co-habitor of the West Coast Bureau and Light Reading's primary chewer of sticks, though she is not the only one on the team who regularly munches on bark.

Wagner, whose previous positions include Editor-in-Chief at Internet Evolution and Executive Editor at InformationWeek, will be responsible for tracking and reporting on developments in Silicon Valley and other US West Coast hotspots of communications technology innovation.

Beats: Software-defined networking (SDN), network functions virtualization (NFV), IP networking, and colored foods (such as 'green rice').

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like