Technology
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.
Edition: 206
- 07 March, 2025
AI driven 10Q / 10K text analysis
Since there are always reasons when companies change the wording in their financial filings, being alerted to these changes allows investors to realise potential risk factors and opportunities before they are reflected in the market, ideal for idea generation and portfolio monitoring. Recent alerts include: 1) Broadcom - VMware concerns re. the loss of “significant” customers. 2) Avnet - more benign competitive environment. 3) Guidewire Software - may need to reduce prices or change pricing model. 4) Hewlett Packard Enterprise - more positive on near term growth.
Edition: 196
- 04 October, 2024
Technology
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.
Edition: 188
- 14 June, 2024
Broadcom's uplift in pricing shocks VMware users
Technology
SPR provides recent field feedback on AVGO’s actions, users reactions and vendors who are benefitting. While many acquisitions do not produce the increases in revenue and cost synergies that were promised, based upon AVGO’s aggressive approach, SPR expects it will immediately deliver strong results for both metrics. Despite the disruption and animosity it is creating, SPR is picking up many examples of end users who are paying much more to AVGO then they were prior to this acquisition (price hikes of 100-1000% have been reported). These end users are locked into some or all the VMware products. The cost of switching is very high and, in some cases, will take years. Other vendors discussed include Nutanix, IBM Red Hat and HashiCorp.
Edition: 183
- 05 April, 2024
Tech Trends: Key themes and questions for 2024
Technology
Areas of focus for Sales Pulse in the year ahead will include: 1) Cybersecurity - changing end user priorities and competitive dynamics. 2) UC/CC/CP - will a reduction in seat count negate increased ARPU from AI features? How will continued M&A impact this market? 3) Vendors benefitting from the rapid growth in DevOps / DevSecOps. 4) Gap in orders in 1H24 for networking market as end users digest backlog and we await ramp of next generation. 5) Broadcom acquisition of VMware driving end users to look at alternatives, to the benefit of IBM Red Hat and Nutanix. 6) Ramp of funding for Broadband Infrastructure. 7) Impact of CSP Marketplaces on Distributors and VARs.
Edition: 177
- 12 January, 2024
VMware (VMW) & Broadcom (AVGO)
Technology
European Commission officials appear to be examining whether AVGO’s proposed takeover of VMW will harm rival component manufacturers who rely on VMW’s software to test their products, a source told CTFN. The EC’s detailed questionnaires are probing what type of information customers require from VMW, as well as how easily manufacturers can switch away from its products. The EC’s questions appear designed to test a theory of harm that AVGO might have an incentive to reduce or delay information shared by VMW with AVGO’s rivals involved in the production of network-interface cards and host bus adapters.
Click here for the full story.
Edition: 150
- 09 December, 2022
Activision (ATVI), Black Knight (BKI), VMware (VMW)
CTFN provides in-depth news on mergers, event-driven situations and major corporate developments. The news service, in conjunction with their PressRisk platform, delivers content and resources that increase the value and efficiency of their readers’ research efforts. Recent coverage includes:
Activision - The state of play meeting with the EC for Microsoft’s acquisition of ATVI was 21st Oct. MSFT can offer Phase I remedies by 28th Oct.
Black Knight - The FTC sought a declaration from a vendor in the loan origination space as part of its review of Intercontinental Exchange’s purchase of BKI.
VMware - Market power in virtualisation software likely to take centre stage in EC’s examination of Broadcom merger.
Click here to access the three news stories.
Edition: 147
- 28 October, 2022
Best short ideas in Software
Technology
Former software engineer, Srini Nandury, who was the original bear on Nutanix and JFrog, highlights three names that continue to offer material downside…
Gitlab (GTLB) - Reminds Srini of JFrog; market fragmentation and intense competition will limit growth.
HashiCorp (HCP) - Growth to slow more quickly than investors realise; VMware catching on faster as it did with Nutanix. Stock could easily fall to $22.
UiPath (PATH) - Turned bearish with the stock at $70 last June. Expensive solution in a commoditising market; Microsoft is quickly vaulting to the leadership position in RPA.
Edition: 131
- 18 March, 2022