Dell And Nutanix Expand Partnership To Capture Disillusioned VMware Customers

In a strategic move that reshapes the hyperconverged infrastructure landscape, Dell Technologies and Nutanix announced an expanded long-term partnership aimed squarely at capturing customers dissatisfied with VMware’s recent changes under Broadcom’s ownership.

The deepened collaboration leverages the strengths of both companies to offer an attractive alternative for enterprises seeking flexibility, scalability, and performance in their IT infrastructure.

Capitalizing on Market Discontent

The timing of this announcement is no accident. Since Broadcom acquired VMware, many of VMware’s long-time customers and channel partners have expressed discontent over new pricing structures and contract terms. Broadcom’s moves have included altering product packages and canceling contracts with some channel partners, forcing them to reapply under revised terms and conditions. This has created an opening in the market, which Dell and Nutanix are now aggressively targeting.

By offering Nutanix’s software stack on Dell’s industry-leading PowerEdge servers and integrating Dell’s PowerFlex external storage with the Nutanix Cloud Platform, the two companies are positioning themselves as the go-to alternative for enterprises looking to move away from VMware.

However, it’d be a mistake to think about the new offerings only as a reaction to the current VMware-fueled churn in the market. Even setting aside what’s happening with VMware in the market, Dell and Nutanix are working together to solve real-world problems for IT organizations across industries. That’s a win, regardless of the motivation.

The Dell XC Plus Appliance

The new Dell XC Plus appliance is at the heart of the announcement, a turnkey HCI solution that integrates Nutanix’s Cloud Platform, including its AHV hypervisor and centralized Prism management console, with Dell’s PowerEdge servers. The XC Plus appliance is available in six different models, each offering varying configurations of CPU, GPU, memory, networking, and storage capacities to cater to a wide range of enterprise needs.

The new appliance is designed for ease of deployment and management, providing a plug-and-play solution that significantly reduces the complexity of IT infrastructure. With its integration of compute, storage, and networking into a single system, the XC Plus appliance simplifies the management of hybrid cloud environments, making it an excellent option for enterprises looking to modernize their data centers.

^{PowerFlex Nutanix Integration: A Game-Changer}

The most significant development in this expanded partnership arrives sometime in 2025. First teased during Nutanix’s .NEXT customer event earlier this year, Dell and Nutanix are working together to fully integrate Dell’s PowerFlex storage system with the Nutanix Cloud Platform.

PowerFlex, known for its scalability and performance, will be the first external storage solution to integrate with Nutanix’s software. The integration allows customers to manage compute and storage resources independently, offering greater flexibility and the ability to optimize infrastructure according to specific workload requirements.

The PowerFlex and Nutanix integration also supports multiple hypervisors, allowing customers to choose the virtualization environment that best suits their needs. This flexibility, combined with the ability to scale out to thousands of nodes while maintaining high performance, makes this solution particularly appealing for large enterprises with demanding workloads.

Looking Ahead: Future Expansions and Industry Impact

Dell and Nutanix made it clear to analysts that this partnership is just the beginning. They have already teased plans to explore further integrating Nutanix’s Cloud Platform with other Dell IP-based storage solutions, such as file and object storage products. This would create a more comprehensive infrastructure platform catering to an even broader range of enterprise needs.

The implications of this expanded partnership extend beyond just the immediate market for disillusioned VMware customers. As the integration between Dell and Nutanix deepens, it could spur increased competition in the HCI market, prompting other players to enhance their offerings and forge similar strategic alliances.

Analyst’s Take: A Bold Move in a Shifting Landscape

Nutanix doesn’t play favorites, maintaining healthy relationships with nearly every server OEM. Lenovo and Nutanix have a strategic relationship that dates to 2015, with Lenovo offering a broad set of Nutanix-powered options. Hewlett Packard Enterprise also has multiple Nutanix-based offerings, including HPE’s Greenlake with Nutanix for enterprise multi-cloud. Cisco enjoys a long-standing strategic relationship with Nutanix.

The company’s relationship with Dell has a long history, dating back over fourteen years. It’s an open secret that even when Dell owned VMware, Dell sold many Nutanix-based solutions despite its public preference for turnkey VMware-based solutions. Times have changed, and the depth of the expanded relationship between Dell and Nutanix makes their collaboration a truly unique one.

Dell and Nutanix are making a bold and calculated move that disrupts the current market dynamics. By offering a compelling alternative to VMware, they are positioning themselves to capture market share and setting the stage for future growth and innovation in the HCI and cloud infrastructure sectors.

There are few hybrid-cloud challenges that Nutanix’s software can’t address, and a deep partnership with an enterprise platform provider like Dell gives enterprise IT organizations a safe and easy way to leverage the power of the solution.

As enterprises continue to navigate the complexities of hybrid cloud and seek more flexible, scalable solutions, the Dell-Nutanix partnership offers a compelling choice for IT organizations to modernize their applications and infrastructure. This gives customers a timely and attractive option in an increasingly complex, crowded, competitive market.

Disclosure: Steve McDowell is an industry analyst, and NAND Research is an industry analyst firm that engages in, or has engaged in, research, analysis and advisory services with many technology companies, including those mentioned in this article. Mr. McDowell does not hold any equity positions with any company mentioned in this article.