 Live from Vienna, Austria. It's theCUBE, covering .NEXT Europe 2016. Brought to you by Nutanix. Here's your hoes, Stu Miniman. Welcome to the close of SiliconANGLE Media, theCUBE's coverage of Nutanix .NEXT 2016 Europe here in beautiful Vienna, Austria. It's the first time we've had theCUBE here in Austria for myself and the team. It's been a really good event, good food, beer and wine, great art, culture, music, all of that. But the reason we've been here is to talk to Nutanix, a company that recently went IPO, NTNX on the ticker stand, had a really good pop when it opened, valued over $3 billion, and they brought in over 1,200 partners and customers here in the AMIA theater, and we had the opportunity to talk to many of the executives, including Dearest Panda, the CEO, partners, thought leaders in the space, some guest speakers, like the professor from Columbia University, we had Kate Russell, an author and journalist, as well as a number of customers, including some service providers. So first thing, let's break through what happened at the event itself. Nutanix made a number of announcements. It's the five-ditto version of their release, really expanding their progression that they talked about, moving from storage through really the virtualization layer through cloud, is what they position as enterprise cloud, the theme they've done is enterprise cloud, hashtag on my terms is the marketing campaign they're doing, and what this means is that they want to give customers some of the experience that you would expect from the cloud. What we at Wikibon called true private cloud means that the way I manage it is much a simpler environment. They talked about the learnings that Nutanix had, what we always said from the hyperscale players because some of the early engineers came from companies like Google and Facebook, but the example they gave in the keynote is Amazon. Amazon, big player in the space, and they highlighted both the one-click capability of Amazon.com, as well as the cloud nature of Amazon itself, and building out, they added to the network capabilities of what are now available, working with both networking and security partners to build out the rest of that base infrastructure stack, as well as a number of pieces, container services, file services, object services, everything around the container, the storage side of the stack, and so many pieces that they're doing in that environment. Customers seem really happy. It's still early days, especially here in Europe. They say only about 35% of their total revenue today is outside of North America, so they've got lots of room for growth, and it's a small team globally, but growing fast, and of course one of the concerns people have is that can they keep the passion and the high quality of people in the company when they start adding dozens, hundreds more? I think there are a little over 2,000 employees today. So I want to adjust, we've talked a lot about the good things they're doing. Where are the areas that customers should kind of understand? First of all, there's no one company is going to have every solution for what you need, so on the one hand I say it's great that Nutanix is expanding its ecosystem. There's a good partner pavilion here with a number of companies in here. They are still some of the big players, specifically VMware and Cisco, where the relationship is a bit challenged. I think it's over 70% of Nutanix customers still run VMware, and the corporate relationship between VMware and Nutanix is a difficult one. That being said, when I talked to, there was a service writer I talked to on the show this week, as well as a couple of customers. They're using VMware, they don't have any challenges with Nutanix, but as Nutanix expands what they want to do, how will that bump up and put them into contention with what VMware's doing? From a Cisco standpoint, Nutanix expanded what they're supporting on Cisco. They're now supporting Blade servers and claim to be the first and only hyperconverge company that can offer their solution on Blade servers. Cisco is not exactly on board with this engagement, it's what we call a meet in the field, Presidio has worked with them on that, but it's challenging there. And on the VMware side, VMware is pushing very hard with the likes of their VSAN solution, and that's the VxRail offering that they've got with the Dell EMC pieces. So there will be some strong competitors in the marketplace, VSAN has more customers overall. However, our numbers are that, if you just look at kind of the royal revenue, Nutanix is still in the lead. VMware's a little bit tougher to get at total revenue just because they sell only the software piece. Nutanix and the vast majority of the environments sell the appliance too. That brings up kind of the OEM angle, that Dell EMC relationship is one that will be one we'll want to watch for quite a bit here. The numbers I've heard from the Dell EMC side, it's over a thousand nodes, I think it was like 1200 nodes that they sold of Nutanix, which is a sizable percent. I think they said in the recent quarter, Dell believed they were about a quarter of the overall business. Nutanix does not necessarily recognize all of that revenue when it is sold because there are services and software involved, so they take it in more as a subscription model. So understanding kind of the flows of money are always something we try to pick apart. Now as a public company, we will have more data and be able to understand that. And Nutanix, to their credit, have been very transparent about what they're doing. Last thing I really want to look at is just for enterprises themselves, when you look at how I make my environment simpler, obviously there's lots of proof points that customers that are doing hyper-converged infrastructure do simplify their operations. Hopefully from a capital expense standpoint, it is a cost savings, but from an operation that simplicity standpoint is really where it is better. And that does not mean necessarily that you're lowering headcount. What it does mean is you can really focus on things like the digital transformation, other projects that you need to do internally, things like backup security and the like. There's lots of ways that we make it that customers and especially IT staff can deliver for the business. The caution I think I've been poking at this week is hyper-converged infrastructure or even the full vision that Nutanix has is not a panacea. Companies need to understand what they should do themselves, what they should look to offerings, different offerings to be able to make things easier. For example, I haven't had much discussion about software service SaaS. Most companies, if it's an application that I can move to SaaS, that's probably going to be easier for my environment. Service providers are a great way to get engaged. Service providers can not only, you know, they could host your entire stack for you or you can bring your own hardware, you can bring your application. There's that spectrum of what I bring in control versus what I can let go of because maybe it's not core to my business or something that I'm greatly skilled at. The great point made by one of the service fighters here is if you look at utilization of resources, the average enterprise greatly underutilizes what they had and even if you buy a simple, small blocks of infrastructure like Nutanix, you are unlikely to reach the level of utilization as if I was an actual service provider or a public cloud provider. So there's always those trade-offs. We tend to overbuy, you know, what we're doing. The long and short is that we have a lot more flexibility in these offerings here. We're always really excited to be able to dig into this technology. On the Wikibon site, wikibon.com, you can see lots of research that we've done on what we call ServerSan. We had, you know, all the revenue market forecasts. We actually go out for 10 years and it is our belief that in five years the hyper-converged category will be the majority of sales for kind of the traditional enterprise environments. That's replacing what was known as SAN and NAS. So that's on the research side. From the video side, siliconangle.tv is, of course, where you can see all the videos, all the videos that we did at this show will be there, many other shows. I've got one more show this year which is Amazon Reinvent Show. So, while I said, you know, I have great kudos to Nutanix that they've had, you know, a lot of people showing up at their US show in Vegas and their show here in Europe. They'll do another show in the US and in Europe next year. Amazon is just a force of nature. They're expecting 25,000 people at that Las Vegas show and I'm excited that I'll be there co-hosting with John Furrier for three days of broadcast there with that exploding ecosystem. So, as we reach the end of the program, I want to thank you for watching. Thank you for all the guests here. Big shout out to the entire team here. Seth, Patrick, and Greg, really appreciate you guys making the trip, you know, checking out some of the local culture here. Thank you so much for watching theCUBE and we look forward to seeing you at the next show.