Citrix-Nutanix vs VMware-EMC, Oracle-Xsigo?
Will Citrix Systems (NASDAQ: CTXS) buy Nutanix — setting up a data center storage war with EMC and VMware? That’s the latest virtualization acquisition rumor. The Citrix-Nutanix chatter follows VMware’s Nicira buyout, Oracle’s Xsigo purchase, and Cisco Systems’ investment in Insieme. Bottom line: Big technology companies are trying to buy their way into the virtualized storage and virtualized networking markets. But will Citrix really be the latest company to open its wallet?
The VAR Guy’s bet is “no.” Sure, rumors about a Citrix-Nutanix deal have been swirling off and on for about two weeks. A major VMware channel partner called The VAR Guy earlier today, stating that the rumor mill had started to spin again.
Nutanix claims to be “the first company to offer a radically simple compute and storage building block for virtualizing datacenters without the need for network storage.” Nutanix goes on to say that it helps customers build SAN-free data centers. Read between the lines and Nutanix apparently wants to disrupt traditional storage companies like EMC and NetApp.
Nutanix has a small but growing channel partner program. The company also partners with both VMware and Citrix Systems.
So far, Nutanix has raised more than $38.2 million, and early customers include the U.S. Army and Samsung.
Is Citrix Buying Nutanix?
But back to the rumor: Is Citrix Systems buying Nutanix? The VAR Guy insists the answer is no. The reason: Much of Nutanix’s business is based on the company’s hardware platform, the Nutanix Complete Block. In stark contrast, Citrix Systems is a software and cloud company.
It’s extremely rare for software companies to buy their way into hardware markets — though Oracle bucked that reality by acquiring Sun Microsystems a few years back.
The VAR Guy reached out to Citrix and Nutanix for comment this evening. Technology companies typically decline comment about M&A rumors. If our resident blogger hears anything new he’ll be back with an update…