Going to discuss an overview of financial modeling from a hyperconvergence/cloud perspective, talk about why Nutanix changes the game ecomically as well as technically when it comes to CapEx and associated Op/Ex, discuss admin savings, Hypervisor savings, business savings and show several case studies. We’ll conclude with TCO comparison vs. Public Cloud

1. 1
Financial Modeling for HCI/Cloud
@Twitter

2. 2
3-Tier Infrastructure Lens Perspective

3. 3
Shift perspective to strategic big
picture
Achieve project funding
Help ensure & measure project
success
What is the Objective of an ROI/TCO Analysis?

4. 4
IDC Report: Expenses Related to Virtualization as Percent of Total Cost
33%
80%
66% 20%
1996 2014
Operating
Expenses
Capital Expenses
Source: IDC Worldwide Ratio of Annual Server Opex to Annual Server Capex 2014
Year
Operating expenses are taking over datacenter costs

5. 5
Nutanix Economics

6. 6
Example Only
Traditionally assets must be purchased up front causing
high waste of depreciation
3-Tier Infrastructure Economic Challenges

7. 7
1-Click Simplicity & Financial Enhancement

8. 8
New DT VMs per Year New Nodes per Year
Year 1 1000 8
Year 2 1000 6
Year 3 1000 5
Year 4 1000 4
Year 5 1000 3
Nutanix “Pay as You Grow” Slashes Project Cost
& Maximizes Performance

9. 9
IDC: Administration Time Reduced 71%

10. 10
Nutanix
Acropolis
Hypervisor Savings

11. 11
vSphere AHV
License Cost $3,500/CPU + SNS Inc.
Management Cost vCenter $6,000 + SNS + HW Inc.
Analytics Cost
vRealize Operations
~$1,000/CPU + SNS?
Inc.
DR Cost SRM ~$300/CPU + SNS Inc.
Resiliency
SQL Server or Oracle + HW +
set-up
Inc.
Design Costs Extensive for large deployment Minimal
Business Disruption Costs
Disruptive upgrades & 3rd party
SW increase risk
Very low risk
TCO Variables: vSphere vs. AHV

12. 12
External TCO/ROI Validation

13. 13
TCO: Nutanix vs. Vblock

14. 14
Nutanix Pay-as-Your-Grow Slashes Costs & Risk
Aggregated Financial Metrics
Year Physical
Desktop
Virtual
Desktop
Net
Cash Flow
Without
Staff Costs
Investment - $1,405,404 ($1,405,404) ($1,405,404)
Year 1 $7,840,528 $4,144,415 $3,696,113 $3,042,630
Year 2 $7,840,528 $4,821,823 $3,018,705 $1,719,239
Year 3 $7,840,528 $4,101,510 $3,739,018 $1,793,568
Year 4 $7,840,528 $4,751,831 $3,088,698 $ 680,198
Year 5 $7,840,528 $4,201,693 $3,638,385 $1,230,335
Total $39,202,642 $23,426,676 $15,775,966 $7,060,566
ROI 1123% 502%
Payback 4.6 Months 5.5 Months
IRR 252% 180%
VDI ROI: St. Luke’s Healthcare System

15. 15
St. Luke’s Before/After

16. 16
“I love the new Virtual Desktop! I honestly
think it is THE most successful thing that our
IT department has done in the last 5 years.”
- St. Luke’s physician
St. Luke’s Health System – Brett Taylor

17. 17
County of San Mateo

18. 18
Nutanix Pay-as-Your-Grow Slashes Costs & Risk
Aggregated Financial Metrics
Year
Physical
Servers
Virtual
Servers
Net
Cash Flow
Without
Staff Costs
Investment
-
$ 725,000 ($ 725,000) ($ 725,000)
Year 1 $2,537,600 $ 39,671 $2,497,929 $2,137,929
Year 2 $2,834,400 $1,151,731 $1,682,669 $1,142,669
Year 3 $2,951,200 $ 130,175 $2,821,025 $2,281,025
Year 4 $3,068,000 $ 444,490 $2,623,010 $2,083,010
Year 5 $3,184,800 $ 505,805 $2,678,995 $2,138,995
Total $14,576,000 $ 2,997,373 $11,578,627 $9,058,627
ROI 1597% 1249%
Payback 3.5 Months 4.1 Months
IRR 326% 268%
San Mateo County ROI
Server ROI: County of San Mateo

19. 19
Business Drivers Trump Infrastructure Savings
Business Savings Trump Infrastructure Savings

20. 20
“[Organizations] are realizing that their application infrastructures, which was
designed — in some cases — over 10 years ago, cannot support the demand
for the real-time analytics, development agility, deployment flexibility and
fast reconfiguration of business networks required to successfully compete
in the digital era.“ – Massimo Pezzini, Vice President and Gartner Fellow
(Gartner Press Release April 2015)
Nutanix product
development
Infrastructure Agility Improves Business Profitability

21. 21
83%
Reduce Time Per
Storage Upgrade
51%
Improved Application
Performance
38%
Reduced Time To
Release Applications
$499,560
Additional Revenue
from Improved
Operations
$190,863
Additional Revenue
from Reduced
Downtime
＄
＄
IDC Validation of Business Savings

22. 22
Tractor Supply Company

23. 23
✓ Agility
✓ Predictable Scale
✓ Low Opex
Revenue Forecast
2015 $6B Run Rate
Public Cloud Comes Closest to the Notion of
Invisible Infrastructure

24. 24
Source: http://www.datacommunitydc.org/blog/2013/01/gce-versus-ec2-a-comparison-of-instance-pricing-
and-characteristics-part-1
Sandy Bridge
8 Core 2.6GHz
16 Hyper
Threads
2 Per Core
44 EC2 Instance
2.75 Per Hyper Thread
Many IT professionals do not fully understand their application’s
utilization before moving to the cloud
EC2 Does not Equal CPU

25. 25
75%
vs
Elasticity Predictability
25%
75% of workloads are predictable
Enterprise Workloads are Heavily Weighted Towards
Predictable Workloads

26. 26
✓ EC2
✓ EBS
✓ EBS w/IOPS
✓ Elastic Load Balancer
✓ Cloud Front
✓ Cloud Search
✓ Cloud Watch Alarming System
Add-on Services
The Gotchas in Cloud

27. 27
Just Migrating to Public Cloud is Expensive

28. 28
AWS: 141% more to run over 5 years
• Total Cash Flow savings of $1,047,903
– Amazon: $1,789,962
– Nutanix: $742,059
• Equipment Supply Company Use Case Example
(Actual workload)
– 68 VMs of C4.4xlarge and M4.xlarge
– Compute turned down during off hours
• Cloud: Enterprise vs. Public
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
Option 1: AWS Option 2: Nutanix
Total Cost Comparison Over 5 Years
Public Cloud Costs Nutanix On-Prem Cloud Peoples Cost
141%+
Cloud: Enterprise vs. Public

29. 29
60 Months OpEx Spend
Option 1: AWS Option 2: Azure
Option 3:
Nutanix
Option 4:
Nutanix Lease
Users Supported 600,000 600,000 600,000 600,000
VM Supported 300 300 300 300
Operating Costs
Depreciation Expense $0 $0 $1,442,005 $1,442,005
Maintenance Amortization $0 $0 $975,274 $975,274
Interest Expense $0 $0 $0 $163,028
Power & Cooling Expense $0 $0 $517,187 $517,187
Data Center Expense $0 $0 $34,286 $34,286
Sub-Total Operating Costs $0 $0 $2,968,752 $3,131,780
People Costs
Full Time Equivelent @ $210K $8,400,000 $8,400,000 $8,400,000 $8,400,000
Sub-Total People Costs $8,400,000 $8,400,000 $8,400,000 $8,400,000
Cloud Costs
Compute $3,666,060 $8,672,400 $0 $0
Storage $1,152,000 $334,200 $0 $0
Bandwidth costs $2,141,925 $963,866 $0 $0
AWS Support charges (one-time) $0 $0 $0 $0
AWS Support charges (monthly) $215,700 $60,000 $0 $0
Sub-Total Cloud Costs $7,175,685 $10,030,466 $0 $0
Total OpEx $15,575,685 $18,430,466 $11,368,752 $11,531,780
Monthly Cost per VM $865 $1,024 $632 $641
Monthly Cost per User $0.43 $0.51 $0.32 $0.32
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
$16,000,000
$18,000,000
$20,000,000
Option 1: AWS Option 2: Azure Option 3: Nutanix Option 4: Nutanix
Lease
Total OpEx
Operating Costs People Costs Cloud Costs
Nutanix vs. Cloud Financial Summary

30. 30
92
45
42 41 39 39 38
29 27
22
VMware
Cisco
HP
NetApp
Microsof
t
Dell
Citrix
Nutanix
Apple
EMC
Nutanix has won the NorthFace Scoreboard Award for
Excellence in Service Delivery
2013, 2014 & 2015
Quantifying Support

31. 31
Best Buy

32. Thank You