Hybrid multi-cloud is shaping up to be the dominant model among enterprises: Nutanix’ Faiz Shakir

India's hybrid multi-cloud usage has grown exponentially, surpassing the global average growth rate, according to Nutanix's latest Enterprise Cloud Index report. In a conversation with TechCircle, Faiz Shakir, the Managing Director of Sales for India and SAARC at Nutanix, shared insights into the factors driving this adoption, the challenges faced by CIO/CTOs, and Nutanix's plans for the Indian market to expedite hybrid-multi-cloud adoption. Edited excerpts.

Please give us a brief overview of the report. What factors are contributing to the increase in hybrid multi-cloud adoption among Indian businesses?

Nutanix surveyed nearly 100 large enterprises in India and found that 44% utilize hybrid multi-cloud, making it the most popular deployment model in the country. Data security and protection against ransomware were identified as top priorities, with plans to implement AI strategies by 2024. India is expected to double its usage of hosted private IT services in the next one to three years, while on-premises infrastructure usage is projected to decrease. Indian businesses recognize the benefits of multiple cloud environments and are actively integrating hybrid multi-cloud architectures into their operations.

Several factors are driving this trend, with customers and end users recognizing that one size does not fit all. Different applications have unique requirements. In the past, the choice was between a private cloud and a public cloud. However, it has become evident that a single path is not sufficient, and options are needed to run specific use cases and applications on a private cloud while handling more unpredictable cases on the public cloud. This realization has led to the emergence of truly hybrid cloud solutions, bridging the gap between public and private clouds that allows the flexibility to move applications and data as needed. India is embracing this cloud model and understanding the relevance of hybrid multi-cloud solutions. Additionally, the total cost of ownership for a hybrid multi-cloud approach is more favorable for large enterprises compared to a public cloud-only strategy. It has taken some time for people to realize that the costs associated with cloud solutions often exceed initial expectations, making hybrid a cost-effective solution in the long run.

What are the common obstacles faced by companies using multi-cloud, and what recommendations can you provide to overcome them?

Despite the momentum, in 2024, concerns surrounding the effective management of a hybrid multi-cloud environment persist. Historically, decisions had to be made between different options, and the challenge was managing multiple silos in a unified manner. However, advancements in technology have enabled companies to efficiently manage operations through a single interface, improving operational efficiency significantly. Collaboration between private and public cloud providers has also improved, with a focus on meeting customer needs rather than competition. Companies like Nutanix have established partnerships with major cloud providers like Microsoft and AWS to deliver comprehensive solutions that cater to customer preferences. This shift towards collaboration over competition has addressed historical obstacles and paved the way for successful hybrid multi-cloud solutions.

What new skills need to be developed to establish a strong cloud ecosystem and how are you addressing the skills gap?

The development of cloud technology certification programs and training initiatives is crucial for individuals to establish a strong cloud ecosystem. Companies are actively engaging with academic institutions to provide training on cloud technologies to individuals at a young age. Cloud certifications are becoming increasingly important, especially in technical education programs at esteemed colleges and universities. Nutanix and other companies are offering comprehensive training programs to bridge the skill gap. Simplifying user interfaces in cloud management consoles allows even non-experts to navigate and manage cloud technologies effectively. This user-friendly approach reflects a departure from the past when complexity was valued, empowering individuals of all ages to handle cloud technologies proficiently.

With artificial intelligence (AI) playing a significant role in the cloud ecosystem, how does that create more opportunities or challenges?

AI has become a focal point in discussions about the future of organizations. Many companies are exploring AI strategies, with a focus on enhancing operations while maintaining manual processes. Organizations like Nutanix are simplifying AI implementation through solutions like GPT in a box, combining software, hardware, and learning models to facilitate AI adoption. While AI is expected to streamline operations, manual intervention will still be necessary, as we are in the early stages of AI development. The strategic planning phase for AI strategies is ongoing, with CIOs, CDOs, and CEOs working towards effective implementation. The goal is to simplify AI adoption for users, although widespread adoption will take time to fully realize.

What strategies does Nutanix have in store for the Indian market in terms of upcoming announcements, recruitment, and expansion in the next year?

We have ambitious plans to expand and fortify our presence in India. Our focus is on recruiting more employees, expanding into large enterprise accounts, and leveraging our partnerships with Microsoft and AWS to drive substantial growth. We are confident that these initiatives, supported by an expanded sales team, extensive use of partnerships, and increased adoption of Nutanix in large enterprise accounts, will contribute to our success. Additionally, the recent acquisition of VMware by Broadcom has created uncertainty among customers, prompting them to consider Nutanix as a viable alternative for their workloads. This presents a promising opportunity for us to capture a larger market share. VMware is our primary competitor in the private cloud sector, and we are well-positioned to capitalize on the concerns of their current customers.

Are there any areas where you feel you need to improve in comparison to your competitors?

Nutanix is currently experiencing significant success, as evidenced by our recent earnings report and stock performance. We have seen tremendous growth, with our products being widely adopted across various sectors, especially in India. Major institutions such as the largest bank, healthcare pharmaceutical company, and hospital chain in India are all utilizing Nutanix. We have successfully transitioned from being an appliance company to a software company and are now operating on a 100% subscription-based model. Our customers have expressed high satisfaction with Nutanix, as reflected in our earnings reports over the past 8 quarters. Enterprise workloads have reached new heights. In terms of partnerships, we have been collaborating with Microsoft for a year, while our partnership with AWS has been ongoing for a longer period. Additionally, we are partnering with service providers like Web Werks in India, a part of the Iron Mountain Group. We offer a consumption-based model for end-users to access Nutanix through a subscription format. While these partners have their offerings, we believe that combining Nutanix with one of these partners using a hybrid multi-cloud approach is the optimal choice for customers. Larger clients utilize AWS for specific workloads and Nutanix on AWS for others. Nutanix has always emphasized platform choice and remains committed to this principle after 14 years. Nutanix can operate on any hardware, with any hyperscaler, hypervisor, and application, ensuring there is no vendor lock-in, unlike our competitors. The commitment to no lock-in, made at the company's inception, still holds today.

How do you envision the future of multi-cloud evolving? What steps should companies take to prepare for it?

There’s a need to have enough generalists to manage and utilize various offerings. CIOs are developing strategies to streamline business processes, particularly product launches, by identifying the most efficient and cost-effective approaches. They are prioritizing effectiveness over speed, understanding that the quickest route may not always be the most cost-efficient and could potentially impede productivity. CIOs are evaluating which workloads are best suited for different platforms. India is leading globally in adoption compared to other surveyed countries. The majority of customers and end-users are seeking solutions that meet their specific needs. The primary drivers for IT modernization are AI, security, and sustainability. In India, 99% of respondents are prioritizing a cloud-smart strategy, surpassing the global industry response rate. India is a top-performing region for Nutanix worldwide, with significant growth opportunities, investments, and an expected increase in headcounts. India's growth is projected to outpace that of other regions in terms of Nutanix's performance and overall development.