Interesting piece on Nutanix and resellers:
Nutanix’s senior director of EMEA channels Jan Ursi has defended against a claim the firm has no clear channel strategy, suggesting that the hyperconverged vendor does not rely on conventional methods, such as reward programs, in order to foster partner relationships.
- Building a reseller channel is expensive and its takes years to get results. Nutanix is under a great deal of pressure to deliver results right now.
- Nutanix is desperate for sales to sustain its high share price as competition from Cisco, HPE and VMware/DELLEMC heats up
- Selling via resellers means sharing the profits and losing control of the customer. Nutanix is now a sales-only company and letting go of customers, control and revenue is a very big ask.
- Nutanix is agressive, kill-the-deal-and-the-competition type of company. Its hard to have a rational conversation about long term gains vs short terms wins.
- How does Nutanix reach customers before they buy hyperconverged products who have relationships with Cisco/HPE/Dell who have reseller models built over decades with many billions invested in them ?
- How can Nutanix forgo sales profits while spending on the reseller channel and keep its promises to shareholders ?
Nutanix has a strong product for private cloud. Its integrated, easy to buy and offers a ‘public cloud’ experience. There are good reasons for their success of far but I wonder if Nutanix is running out of road as the dancing elephants move into hyperconverged too ?