And a bit of a check in on the anger at VMWare and Broadcom. Or rather, who is benefiting.
Nutanix has reported a significant revenue surge, driven by customers transitioning from VMware due to Broadcom’s acquisition. In the second fiscal quarter ending January 31, 2025, Nutanix achieved revenue of 654.7 million dollars, marking a 16 percent increase from the previous year. The company’s profit also rose to 56 million dollars, reflecting a 70.8 percent year-over-year growth. Annual recurring revenue reached 2.1 billion dollars, up 19 percent, with the customer count increasing by 710 to a total of 27,870. Analysts from William Blair indicated that the company is benefiting from increased federal spending and a favorable shift in enterprise accounts seeking alternatives to VMware. Nutanix anticipates continued double-digit revenue growth for the fiscal year 2025, with a revenue forecast of 625 million dollars for the next quarter.
In a recent interview with CRN, the CEO of Scale Computing highlighted the significant impact of the backlash against Broadcom and VMware, stating that it has driven an impressive four hundred percent growth in enterprise demand for their solutions. This surge comes as companies increasingly seek alternatives in the virtualization market.
Why do we care?
The backlash against Broadcom’s VMware acquisition is translating into real financial gains for competitors—most notably Nutanix and Scale Computing. This isn’t just theoretical frustration from customers; it’s an active shift in buying behavior, with enterprises and public sector organizations making significant moves away from VMware.
With organizations actively looking for new solutions, MSPs and IT consultants should position themselves as trusted advisors guiding the migration process.
Relying solely on VMware is becoming a risk. Expanding knowledge in Nutanix, Scale Computing, Proxmox, or other alternatives could be a competitive advantage.
While the customer base is shifting, Broadcom still holds significant market power. If they stabilize and offer better long-term incentives, some organizations may decide to stay rather than switch. While VMware customers are frustrated now, Broadcom is betting that its streamlined, enterprise-focused approach will result in a more profitable, stable business. The question is: will the customers who leave now ever come back, or is this a permanent market shift?
