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Apollo Global Management LLC (NYSE: APO) agreed to acquire San Antonio, Texas-based cloud computing company Rackspace (NYSE: RAX), for $4.3 billion. The and Nutanix teams will work to bring an application-first approach to choosing, managing and consuming IT infrastructure – enabling customers to pick the right cloud for each application. “Together, and Nutanix plan to bring together clouds, platforms and people, on an elegantly simple pane-of-glass,” says Nutanix. “We have shared a similar vision as Nutanix since day one – datacenter infrastructure must be fully automated, simple to deploy and easy-to-use,” said Aaditya Sood, CEO and founder, “We are excited to join the Nutanix team to work together to eliminate the daunting complexity of legacy datacenters by taking a radical, application-centric view of IT infrastructure.” Nutanix and PernixData share an architectural design philosophy. The two companies will develop an advanced data stack to replace traditional storage silos and high-latency networks. The combined teams will also focus on reducing the inertia of application data that inhibits workload mobility across virtual and cloud environments. “With highly aligned cultures, ambition and talent, we are genuinely excited to join the Nutanix team,” said PernixData CEO and co-founder Poojan Kumar. “Today is a very special day in Nutanix’s history,” said Nutanix founder, CEO and chairman Dheeraj Pandey. “PernixData and both have exceptional technology, solid engineering teams, and visionary leaders with the ‘Founder’s Mentality’; they have dreamt big and persevered against great odds to build phenomenal products. We are honored to welcome them into the Nutanix family, and build the next generation of innovative products and truly helping our customers realize the vision of the Enterprise Cloud.” The Nutanix enterprise cloud platform leverages web-scale engineering and consumer-grade design to natively converge compute, virtualization and storage into a resilient, software-defined solution with rich machine intelligence, it says. “Nutanix makes infrastructure invisible,” allowing IT to focus on applications and services that power their business. THE HYPER-CONVERGED AND HYPER-SCALE CLOUD INFRASTRUCTURE MARKET “Not long ago, Nutanix, Inc., the latest darling of Silicon Valley, seemed destined for IPO greatness,” wrote Investopedia contributor Justin Walton. “Impressive sales and a flood of private funding has the company riding high, but a slumping tech IPO market has put its plans to go public on hold. Meanwhile, competitors are working to join Nutanix in the hot hyper-converged computing market and undercut tech’s latest unicorn.” “The delays could not come at a worse time for Nutanix,” added Walton, “as Cisco Systems Inc. (NASDAQ: CSCO) is ramping up efforts to enter the hyper-converged market and not only compete with, but undercut, the company’s pricing.” Hewlett Packard Enterprise (NYSE: HPE) also recently said it will enter the fast-growing, but crowded market for hyperconverged systems, taking aim at Nutanix. “Later this month, we’ll announce a new, market-changing hyperconverged offering based on our Proliant virtualization server,” CEO Meg Whitman said. “Our new solution will offer customers installation in minutes, a consumer-inspired, simple, mobile-ready user experience, and automated IT operations — all at 20 percent lower cost than Nutanix.” New Q2 data from Synergy Research Group shows that Amazon Web Services (AWS), Microsoft, IBM and Google combined control well over half of the worldwide cloud infrastructure service market. They also continue to grow more rapidly than their smaller competitors. In aggregate the big four grew their cloud infrastructure service revenues 68% in Q2, while the next 20 largest cloud providers grew by 41% and all other smaller providers grew by 27%. The market as a whole grew by 51%. Amazon remains in a league of its own, almost three times the size of its nearest competitor and with a clear lead in all major regions and most segments of the market. Meanwhile Microsoft and Google can point to substantially higher growth rates, while IBM continues to feature strongly thanks primarily to its leadership in the hosted private cloud segment. synergy_research_Q2-2016_cloud_infrastructure_market The second tier of operators, including Salesforce, Rackspace, Oracle, NTT, Fujitsu, Alibaba and Hewlett Packard Enterprise, are either niche players, generalist IT service providers, or companies lacking the scale, focus and investment capabilities required to truly challenge the top four hyper-scale cloud providers, according to Synergy. Moreover, hyper-scale cloud providers led by AWS, Google and Microsoft have been cutting their enterprise cloud market prices on multiple occasions during the past few years, triggering a price war which smaller niche players such as Nutanix or rival VMWare, would be unable to sustain. “In a variety of ways Amazon and the other big three players have distanced themselves from the competition in this market and continue to widen the gap,” said John Dinsdale, chief analyst and research director at Synergy Research Group. “What marks them out as different is their global presence, marketing muscle, ability to fund huge investments in hyperscale data centers and, in most cases, a determination to succeed in the market. The ranking of the next 20 largest cloud providers features some interesting companies, with Alibaba and Oracle growing particularly strongly, but they are all starting from a long way behind Google, which is itself growing by well over 100% per year and yet remains only a sixth the size of Amazon.”]]>