Nutanix , a leader in enterprise cloud computing, has announced record adoption of its AHV hypervisor within the federal government vertical in calendar year 2017.

74 percent of all Nutanix Enterprise Cloud OS nodes sold to federal agencies in 2017 are leveraging AHV Hypervisor, compared to 30 percent adoption by the Nutanix worldwide customer base, based on a rolling four-quarter average.

In addition to growth in AHV Hypervisor adoption, Nutanix’s federal business experienced several milestones during the last fiscal year, including:

• Adding nearly 100 new customers in 2017, including component organizations within the U.S. Departments of Defense, Commerce, Interior, Energy, Health and Human Services, the U.S. Federal Court system and federal systems integrators
• 20 new federal customers with total investments valued at more than $1 million each, an 82 percent increase from the number of customers in previous fiscal year
• 320 unique federal customers at the end of 2017

“Gartner estimates U.S. federal cloud spending will more than double over the next four years… Although some agencies — Recovery Accountability and Transparency Board (RATB), Consumer Financial Protection Bureau (CFPB), GSA’s 18F and Commerce’s International Trade Administration (ITA) — were, are or will be cloud-only, that model will likely be atypical.” Instead, “most agencies will retain a hybrid model for the foreseeable future, choosing cloud-native services for some fraction of their portfolio and maintaining an on-premises component for those most sensitive and mission-critical applications.” (Gartner, Inc., Get Ready for the Inflection Point in U.S. Federal Government Cloud Adoption, Rick Holgate and Neville Cannon, January 19, 2016, refreshed June 9, 2017). We believe this will allow agencies to stay true to federally mandated cloud-first strategies, prevent them from becoming locked-in to a single provider, and enable agencies to modernize systems without increasing cost, complexity or impacting performance.

“The demands on federal IT customers couldn’t be higher. They are facing increasing pressure to modernize systems and implement heightened security, all while reducing costs,” said Dheeraj Pandey, co-founder and CEO of Nutanix. “Nutanix’s momentum in the federal vertical demonstrates that customers are increasingly turning to Nutanix to meet these needs—pulling back from ‘one-size-fits-all’ public cloud strategies and placing a greater emphasis on hybrid ecosystems to modernize their legacy systems. We are eager to continue to partner with federal customers to achieve these goals.”

Government agencies are turning to hybrid ecosystems to lower total cost of ownership and match applications with appropriate cloud environments. Federal organizations that are modernizing and optimizing their infrastructure are finding strong value in Nutanix’s ability to help them reduce the number of separate IT silos. As Nutanix continues to introduce new technologies, like the recently acquired Botmetric, which provides visibility into cloud usage so organizations can better manage costs, federal agencies will continue to see value from adopting the Nutanix Enterprise Cloud OS.

By including AHV in the Nutanix Enterprise Cloud OS software stack, Nutanix helps government agencies reduce cost and complexity while enhancing the visibility and functionality of their infrastructure. Customers leveraging AHV can eliminate the need to purchase separate virtualization technology, significantly reducing costs and eliminating the need to manage multiple licenses. Federal customers continue to account for the largest portion of the Nutanix AHV user base.