Technology

Report by Sales Pulse Research

SPR’s latest channel checks indicate that large deals are finally progressing after previous delays as enterprises were still evaluating their alternatives and negotiating with Broadcom. However, some channels criticise NTNX for its rigid pricing strategy, suggesting the firm should adopt a more aggressive sales approach like Pure Storage. As expected the Dell / NTNX partnership continues to grow and SPR also believes NTNX is making progress on enhancing its Acropolis Hypervisor (ACH), that some estimated previously had ~80% of the functionality of VMware ESX. Enhancements to ACH will make it easier for NTNX to replace VMware, especially in complex operating environments.

Technology

Report by Lynx Equity Strategies

Three weeks ago, with SMCI trading at $21, Lynx rolled out a $45 price target and opined that the odds of delisting were not as high as many thought. Their view was based on belief that the company held a uniquely critical position in the all-important business of installing AI infrastructure. They also argued that the likelihood of Dell taking market share was overblown and called for the run-up in the stock to fade. For the next couple of months, the event-driven volatility is likely to wind down while investors turn their focus to SMCI’s fundamentals. And that is reason enough for Lynx to raise their TP to $60 (based on 20x their FY25 EPS estimate of $2.93).

Technology

Report by Sales Pulse Research

Sales Pulse continue to pick up more positive views of the tailwinds for Nutanix and examples of deals that are driven by Broadcom’s acquisition of VMware however, channels are quick to state that the move from VMware is challenging, at least for large users. In Nutanix upcoming report we expect to see more evidence of growth from the Broadcom/VMware acquisition as well as the other catalyst that we have discussed in recent notes (increase in partnerships including Cisco, Dell and additional VARs), but rapid acceleration seems unlikely. Many speakers at Nutanix’ Next Conference in Barcelona discussed their move from VMware to Nutanix.

Technology

In John Harrington’s latest Tech Trends report, he looks at several factors that have combined to change IT development and sales dynamics. These include how the accelerating deployment of speedier wired and wireless connectivity to the cloud, very fast computing platforms being built at scale within the clouds, the accelerating development of quantum computing as a viable commercial business, and the development of serious AI capabilities are affecting the global digital landscape. As IT increasingly transitions from in-house networking to the cloud, some new areas of IT will benefit, while others face an uncertain future.

Positive: Advanced Micro Devices, Alphabet, Apple, Amazon, Broadcom, Ciena, Dycom, Intel, IonQ, Microsoft, Nvidia, Rigetti.
Negative: C3.ai, Cisco, Dell, Qualcomm, Salesforce.

Blueshift’s IT sector sources are pointing at Oracle’s plan to cut c.30k jobs as the crack in the dam that is going to trigger a resizing of workforces across all of tech - as one recruitment executive said, “They have literally been making up jobs for the past several years to beat each other to talent. It had nothing to do with rightsizing. It was a competition to impress investors.” Sources were unanimous that earnings forecasts for the rest of the year across most vendors in all verticals of DIY enterprise networking are going to be poor. Companies covered include Arista Networks, Cisco, CrowdStrike, Dell, Fortinet, IBM, Palo Alto and Zscaler.

Technology

Report by Summit Insights Group

One of those rare hardware-centric companies that is putting up software like growth numbers but is still trading with a hardware multiple - PSTG can return to 20% revenue growth as the pandemic abates and as subscription sales accelerate Srini Nandury expects the stock to continue its recent re-rating (+30% in last 2 weeks). Its investment in addressing enterprise workloads will pay off as many customers are looking to wean themselves away from Dell/EMC complex. FlashArray//C to continue to be its fastest-growing product.