Diving into Nutanix’s $1.56Bn ARR, it’s striking that a majority of its revenue, 📊 58% is generated by just 3 partners. Distributors Arrow Electronics and Tech Data alone are responsible for 32% and 16% of FY23 revenue, respectively.
Even in rapidly evolving tech landscape, key distributors still wield significant influence. This is a reality Nutanix, a company that predominantly sells via partners, knows all too well. But this isn’t the only partnerships lesson we can learn from it.
Nutanix builds software that combines complicated parts of IT (like servers, storage, and networking) into one easy-to-manage platform. It’s like turning a complicated jigsaw puzzle into a simpler one with fewer, larger pieces. Enterprises subscribe to Nutanix Cloud Platform for running applications and data across data centers, edges and public clouds.
📈 Nutanix’s CEO Rajiv Ramaswami who spearheads company's 30% YoY CAGR growth convinced of the GTM advantage of partners
“Gaining sales leverage by our partners has been a 📍 priority since I joined as CEO. We said we would focus on deepening our partnerships to provide more impact in how we go to market, as well as provide more opportunities within larger accounts.”
One of such examples is the recent partnership with Cisco. The new offering integrates Cisco’s SaaS-managed compute and networking infrastructure with the Nutanix Cloud Platform and will be sold by Cisco using its extensive go-to-market reach.
💰 Crucially, in this collaboration Cisco’s field sellers compensated for Nutanix sales as if they were selling own products
To make this work as GTM engine, Cisco sales “are getting compensated [for selling Nutanix software] just as if they were selling Cisco products, so 100% compensation for their service.”
“What we expect with Cisco is a significant expansion in terms of our go-to-market reach” says Rajiv Ramaswami, “with their go-to-market, their ability to sell into a much broader customer base and their footprint, we should be able to benefit from that in the long-term.”
☁️ What about Cloud Marketplaces? Customers buy there, leveraging their commits
Nutanix sees traction via Microsoft Azure and Amazon Web Services (AWS) cloud marketplaces. Its CEO explains the main reason why customers use them:
“People have committed to some of these large public cloud spend commitments. And what they are saying, they are not able to get their applications really to public cloud as quickly as they would like to see and so they are now stuck with saying, ‘I have to spend this much money in the public cloud because I committed to it already’....
And we have seen people purchasing our software through the Azure and AWS marketplace, which help them retire some of their commitment in public spend.”
In a world where traditional distributors and modern cloud marketplaces coexist, how are you navigating this landscape to maximize growth?
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