Nutanix, Inc. (NASDAQ: NTNX) hit the jackpot in their partnership with Alphabet Inc. (NASDAQ: GOOGL) with the former gaining over 8% since word got out of a deal between the two companies.
Nutanix pioneered a method of consolidating servers and storage, called hyperconvergence, allowing Google to more closely target enterprise customers which tend to stick with Microsoft or Amazon. “The Nutanix Enterprise Cloud integrates server, storage, virtualization and networking in a hyperconverged platform to run any workload, at any scale, while removing the complexity of legacy infrastructure,” according to the website, underlining the importance of seamless storage and networking for larger businesses. This deal shows how important the public cloud is becoming for major enterprises, and subsequently to Google.
Though the cloud-legacy infrastructure market is highly dominated by Amazon Web Services and Microsoft Azure, Google is trying to break in after seeing the potential growth. By partnering with Nutanix, Google is hoping to entice a larger customer base to turn to their own cloud storage while also offering the ability to continue using their on-premises data centers, something the company had previously ignored. Google has already rolled out new SAP HANA software to be used atop its cloud, and promises more innovation in the future.