Nutanix CEO Rajiv Ramaswami says hyperscalers' bulk purchasing power means bare metal cloud servers are now often cheaper and more readily available than on-premises hardware, pushing some traditionally on-prem customers toward the cloud. However, he noted a countertrend of customers favouring on-prem infrastructure for AI workloads to keep costs predictable, as ROI on AI remains uncertain. Nutanix reported Q3 2026 revenue of $703 million, a 10% year-on-year increase, and added 730 new customers, many migrating from VMware.
