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1Z0-540 exam Dumps Source : Oracle VM 2 for x86 Essentials

Test Code : 1Z0-540
Test denomination : Oracle VM 2 for x86 Essentials
Vendor denomination : Oracle
: 80 existent Questions

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Oracle Oracle VM 2 for

Oracle virtualization 101: installation Oracle VM Server and supervisor | killexams.com existent Questions and Pass4sure dumps

Oracle may additionally not subsist the greatest virtualization participant, however its commercial enterprise virtualization product, Oracle VM, is elementary to installation you probably believe complete of the rectify accessories.

establishing Oracle virtualization with Oracle VM is fairly easy, and you'll instantly build a test environment to are trying out the platform. Oracle VM is in particular well-suitable for groups that already sprint Oracle databases, because the platform uses an Oracle database and Oracle directors would subsist extra suited to maneuver it. Plus, many agencies want to believe virtualization products from the identical dealer.

Intro to Oracle virtualization

Oracle VM, the Xen-primarily based platform for Oracle virtualization, includes three discrete elements. First you necessity Oracle VM Server, the latest version of which is 2.2.2. To control Oracle virtualization, you want Oracle VM manager. And if you wish windows virtual machines (VMs) to sprint smoothly in Oracle VM, you necessity the home windows Paravirtual drivers for Microsoft windows guests.

that you may download complete these Oracle virtualization accessories for a free verify power from the Oracle utility genesis Cloud, as long as you've got an Oracle account. anyone can gain an account for gratis.

installation Oracle VM Server

After downloading the Oracle VM utility, you'll believe two ZIP files, both containing an ISO. One is for installation Oracle VM Server, the different is for Oracle VM supervisor. singe each to an installing CD after which birth setting up Oracle VM Server. 

The setting up manner for these Oracle virtualization accessories is straightforward: To set up on server-grade hardware, that you could just settle for complete defaults and comprehensive the installation. just gain certain you might subsist using server-grade hardware with satisfactory RAM to sprint complete of the VMs you wish to use, and believe virtualization guide enabled on the CPU.

installation Oracle VM supervisor

To set up Oracle VM supervisor, you necessity a Linux server. The existing edition helps Oracle commercial enterprise Linux 4 and higher and purple Hat commercial enterprise Linux four and higher. On one of these servers, open a root shell and sprint the setting up script from the Oracle VM supervisor setup CD, so that they can install Oracle VM supervisor and Oracle Database 10g specific edition (the backend that outlets assistance about VMs).

creating server pools and VMs

once complete of the Oracle virtualization application is achieve in, you necessity to installation a server pool for Oracle VM, containing a Server Pool grasp, a Utility Server and a digital machine Server. that you may exercise your Oracle VM Server for complete these roles, so there’s no should deploy diverse servers for every project. once the Oracle VM supervisor application has accomplished, start a browser and fix to the OCS web page on the Oracle VM server. The default URL for relaxed access is https://127.0.0.1:4443/OVS. (additionally subsist positive to alternate the IP handle to suit your server’s IP tackle.)

when you’re connected to the net page, which you can set up a pool of complete the Oracle VM servers for your infrastructure. Oracle VM supervisor prompts you for this stint after having access to the web web page for the first time. just click on next to start setting up the Oracle VM server pool. You now necessity to provide a denomination to the pool, and if you desire, embrace a virtual IP handle. After entering that suggestions, click Create to create the server pool. Then, that you would subsist able to add the Oracle VM servers you could believe just installed. After entering complete of the required parameters, click on Create to complete the pool.

that you can then genesis growing VMs. First, upload the ISO info to the Oracle VM server, and then opt for ISO data on the materials tab in Oracle VM manager. select the digital Machines tab and click Create virtual desktop to birth creating VMs.


Oracle VM 3.2 Now purchasable | killexams.com existent Questions and Pass4sure dumps

REDWOOD SHORES, CA--(Marketwire - Jan 22, 2013) - Oracle ( NASDAQ : ORCL )

news statistics

  • Oracle these days announced the habitual availability of Oracle VM unlock three.2, a key constituent in Oracle's computer to information core virtualization portfolio, presenting more advantageous operational effectivity with more advantageous ease-of-use, and greater computerized processes together with complete command-line help.
  • Oracle VM manager now presents unified virtualization administration for Oracle SPARC T-collection Servers working Oracle VM Server for SPARC as smartly as x86-primarily based servers operating Oracle VM Server for x86.
  • stronger Operational effectivity and accelerated Flexibility at a Fraction of the charge

  • Designed for ease of exercise and rapid deployment, original aspects of Oracle VM three.2 consist of:
  • Broader deployment choices
  • In addition to x86 virtualization administration, Oracle VM supervisor can now discover SPARC servers and create and control Oracle VM Server for SPARC domains to permit unified and centralized management in blended facts centers, improving operational effectivity.
  • Oracle VM manager additionally includes MySQL enterprise edition to subsist used as the management repository at no further charge. Oracle VM consumers can now choose to exercise Oracle Database commercial enterprise version, Oracle Database regular edition or MySQL traffic edition because the Oracle VM manager repository when deploying in creation environments.
  • stronger automation and ease-of-use, for more effectivity in massive environments
  • Full command-line guide allows for handy automation: Oracle VM manager Command Line Interface (CLI) helps the identical features as the Oracle VM supervisor browser interface. medium projects can subsist scripted and thoroughly computerized, saving time and decreasing the haphazard of human error.
  • automated Oracle VM supervisor lower back-up: When the exercise of MySQL enterprise edition because the Oracle VM manager database, the administration repository is immediately backed-up, permitting quick recuperation of the administration environment if vital.
  • Tag objects for sooner identification of key corporations in expansive environments: allows for custom tags to subsist created and used to filter the view of VMs and servers in the consumer interface (UI), enabling clients to rapidly establish and act on certain subsets of VMs or servers.
  • "Multi-choose" of objects:  enables users to recall motion on diverse objects in a separate step for sooner operations in giant environments.
  • At-a-glance health popularity: A fitness status tab within the Oracle VM manager UI presents elevated and summarized health and standing reporting on VM information comparable to reminiscence and CPU usage, allowing for quick identification of issues earlier than they become issues.
  • Direct import of digital machines into an Oracle VM supervisor ambiance: Reduces the number of steps required to flow VMs into an Oracle VM manager installing.
  • Oracle has additionally delivered Oracle VM Server for SPARC three.0, featuring various critical original points reminiscent of computerized snug reside migration, vigor administration, and dynamic resource administration, enabling surest-in-type cloud infrastructure features with the Oracle SPARC T-collection servers.
  • With Oracle VM Server for SPARC three.0, users can live migrate Oracle Solaris 10 and Oracle Solaris eleven analytic domains quite simply and securely across differing CPU varieties, the exercise of cpu crypto accelerators, to permit zero downtime cutovers of domains to more moderen generation environments.
  • Oracle VM continues subsist available as a free down load with zero license can freight and world-type traffic help.
  • aiding Quote

  • "With the latest release of Oracle VM, Oracle continues to bring gargantuan can charge-of-ownership and manageability merits to x86- and now SPARC virtualization directors," pointed out Wim Coekaerts, senior vp, Linux and Virtualization Engineering, Oracle. "the brand new liberate helps clients unify and automate their environments on a larger scale to achieve the most desirable effectivity from their infrastructure."
  • supporting components

    About Oracle Oracle engineers hardware and utility to work together within the cloud and in your information center. For more suggestions about Oracle ( NASDAQ : ORCL ), dispute with www.oracle.com

    trademarks Oracle and Java are registered emblems of Oracle and/or its affiliates. other names may well subsist trademarks of their respective owners.


    Oracle Unveils Oracle VM Server for SPARC 2.0 | killexams.com existent Questions and Pass4sure dumps

    Oracle these days introduced Oracle VM Server for SPARC 2.0, an essential component of Oracle Virtualization, the industry’s most finished and built-in virtualization portfolio.

  • Pre-put in on Oracle’s SPARC T-series servers, Oracle VM Server for SPARC (prior to now known as analytic Domains) is a server virtualization solution that allows for as much as 128 digital servers on one system by means of taking competencies of the huge thread scale offered by SPARC T-collection servers, together with the original SPARC T3 servers, enabling groups to odds from increased flexibility and more desirable server utilization.
  • Oracle VM Server for SPARC 2.0 contains performance, resource administration, flexibility, energy management and availability enhancements. it could guide highly subtle commercial enterprise workloads, including Oracle lawful utility Clusters environments.
  • Oracle VM Server for SPARC makes it feasible to sprint multiple sunder OS environments, together with each Oracle Solaris 10 and Oracle Solaris eleven specific, on SPARC T-collection servers enabling rapid consolidation of sunder kernel environments with sharing and dynamic reallocation of CPU, community, storage and different elements.
  • more desirable commercial enterprise-class Virtualization Capabilities

  • Oracle VM Server for SPARC 2.0 grants:
  • more suitable performance: A low-overhead architecture offers scalable efficiency below increasing workloads. efficiency is additional accelerated with the aid of the Peripheral component Interconnect express (PCIe) direct I/O that assigns particular person PCI cards to visitor domains, removing the restrictions to most efficient allot a entire PCI bus, while moreover featuring autochthonous I/O throughput.
  • superior useful resource management: Dynamic recollection reconfiguration allows recollection to subsist brought or removed on an lively district helping corporations more desirable align IT and company priorities. CPU entire core allocation and core affinity permit corporation to optimize the stint of digital CPUs to carry higher and greater predictable efficiency for complete kinds of application workloads.
  • enhanced dash administration: CPU clock pace changes, recollection vigour management and vigour limit settings subsist positive that power consumption is optimized with utilization.
  • greater flexibility: Oracle Solaris has been optimized for guest district migration with Oracle VM Server for SPARC, enabling springy migration of an lively domain.
  • higher availability: improvements to virtual disk multipathing extend the supply of a virtualized atmosphere by means of helping to gain positive that the digital disk failover capabilities can deal with I/O area, storage and storage-path failures.
  • more advantageous secure records processing: leverages the SPARC T-collection methods’ integrated on-chip cryptographic accelerators that carry wire pace encryption capabilities, offering shoppers with vital information and functions insurance policy and provides greater response instances.
  • assisting Quote

  • "With superior performance, administration and availability aspects, Oracle VM Server for SPARC 2.0 supplies unequalled business-classification virtualization capabilities," mentioned Wim Coekaerts, senior vice president Linux and Virtualization Engineering, Oracle. "What’s extra, it clearly demonstrates that Oracle is committed to carrying on with its funding in Oracle Solaris and SPARC and offering utterly optimized and built-in options to their shoppers."
  • About Oracle Oracle (NASDAQ: ORCL) is the area’s most comprehensive, open, and built-in enterprise utility and hardware methods company. For greater advice about Oracle, consult with www.oracle.com

    DABCC DABCC.com, the district chief in sharing the most preempt Virtualization & Cloud advice and guide components. #Citrix, #VMware, #Microsoft, #Mobility and a entire lot greater! dropped at you by means of @douglasabrown & group!


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    1Z0-540 exam Dumps Source : Oracle VM 2 for x86 Essentials

    Test Code : 1Z0-540
    Test denomination : Oracle VM 2 for x86 Essentials
    Vendor denomination : Oracle
    : 80 existent Questions

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    Oracle VM 2 for x86 Essentials

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    Inside Oracle VM VirtualBox | killexams.com existent questions and Pass4sure dumps

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    This chapter is from the engage 

    Oracle VM VirtualBox ("VirtualBox") is a high-performance, cross-platform virtualization engine for exercise on computers running Microsoft Windows, the most well-liked Linux distributions, Oracle Solaris, or MacOS. Designed for exercise on Intel and AMD x86 systems, Oracle VM VirtualBox can subsist deployed on desktop or server hardware. As a hosted hypervisor, it extends the existing operating system installed on the hardware rather than replacing it.

    VirtualBox includes a hypervisor for the host platform, an application programming interface (API) and software development kit (SDK) for managing guest virtual machines, a command-line tool for managing guests locally, a web service for remote management of guests, a wizard-style graphical tool to manage guests, a graphical console for displaying guest applications on the local host, and a built-in Remote Desktop Protocol (RDP) server that provides complete access to a guest from a remote client.

    As shown in pattern 5.1, VirtualBox can sprint on a wide variety of host platforms. Binaries are available for these operating systems, most of them in 32-bit and 64-bit versions:

  • Solaris 10 5/08 and newer, and OpenSolaris 2008.05 and newer
  • Oracle Enterprise Linux (32-bit)
  • Microsoft Windows (XP, Vista, 7) and Windows Server 2003 and 2008
  • Mac OS X 10.5 and newer (Intel only)
  • Linux distributions, including SuSE 9 and newer, Ubuntu, Red Hat Enterprise Linux 4 and newer, and others Figure 5.1

    Figure 5.1 Platforms Supported by Oracle VM VirtualBox

  • There are no specific limitations on the guest operating system, but supported guests embrace complete of the host operating systems plus FreeBSD, OS/2, and legacy Windows versions (NT, Windows 98, Windows 3.1, DOS). No special hardware is required to sprint VirtualBox, other than an Intel x86-compatible system and adequate recollection to sprint the guests. If the system has Intel VT-x or AMD-V hardware virtualization extensions and they are enabled in the BIOS, VirtualBox can recall odds of these items and provide even better guest operational behavior.

    The modular design of VirtualBox provides a consistent set of features across a wide sweep of host platforms. As a consequence, a virtual machine or disk image created on one host can subsist loaded and sprint on any supported host. In addition, a user or administrator who is intimate with managing guest virtual machines on one ilk of host can manage guests on any of the other supported systems.

    Advanced desktop features such as Seamless Mode and Shared Clipboard give users a uniquely intimate experience when interacting with locally running guests. The built-in Remote Desktop Protocol (RDP) server makes VirtualBox exemplar for consolidating and hosting remote desktop systems. Recent improvements in disk and network performance, especially when combined with the advanced resource management features available in Oracle Solaris, gain VirtualBox an excellent selection for hosting server workloads.

    This chapter assumes generic scholarship of PC hardware. It moreover assumes the exercise of VirtualBox version 3.1.4.

    Virtualizing an operating system on an x86 processor is a difficult task, especially without Intel VT-x or AMD-V hardware features. Before describing how VirtualBox works, a quick review of the x86 storage protection model is necessary.

    The Intel x86 architecture defines four levels of storage protection called rings, which are numbered from 0 (the most privileged) to 3 (the least privileged). These rings are used by operating systems to protect faultfinding system recollection from programming errors in less-privileged user applications. Of these four levels, ring 0 is special in that it allows software to access existent processor resources such as registers, page tables, and service interrupts. Most operating systems execute user programs in ring 3 and their kernel services in ring 0.

    VirtualBox runs a separate process on the host operating system for each virtual guest. complete of the guest user code is sprint natively in ring 3, just as it would subsist if it were running in the host. As a result, user code will perform at autochthonous speed when running in a guest virtual machine.

    To protect the host against failures in the guest, the guest kernel code is not allowed to sprint in ring 0 but instead runs in ring 1 if there is no hardware virtualization support, or in a VT-x ring 0 context if such back is available. This presents a problem because the guest may subsist executing instructions that are permitted only in ring 0 while other instructions behave differently when sprint in ring 1. To maintain proper operation of the guest kernel, the VirtualBox Virtual Machine Monitor (VMM) scans the ring 1 code and either replaces the troublesome code paths with direct hypervisor calls or executes them in a safe emulator.

    In some situations, the VMM may not subsist able to determine exactly what the relocated ring 1 guest code is doing. In these cases, VirtualBox makes exercise of a QEMU emulator to achieve the identical generic goals. Examples embrace running BIOS code, real-mode operations early during guest booting when the guest disables interrupts, or when an instruction is known to occasions a trap that may require emulation.

    Because this emulation is gradual compared to the direct execution of guest code, the VMM includes a code scanner that is unique for each supported guest. As mentioned earlier, this scanner will identify code paths and supersede them with direct calls into the hypervisor for a more rectify and efficient implementation of the operation. In addition, each time a guest vice occurs, the VMM will analyze the occasions of the vice to survey if the offending code stream can subsist replaced by a less expensive fashion in the future. As a consequence of this approach, VirtualBox performs better than a typical emulator or code recompiler. It can moreover sprint a fully virtualized guest at nearly the identical speed as one that is assisted by Intel VT-x or AMD-V features.

    Some operating systems may sprint device drivers in ring 1, which can occasions a combat with the relocated guest kernel code. These types of guests will require hardware virtualization.

    5.1.1 Oracle VM VirtualBox Architecture

    VirtualBox uses a layered architecture consisting of a set of kernel modules for running virtual machines, an API for managing the guests, and a set of user programs and services. At the core is the hypervisor, implemented as a ring 0 (privileged) kernel service. pattern 5.2 shows the relationships between complete of these components. The kernel service consists of a device driver named vboxsrv, which is answerable for tasks such as allocating physical recollection for the guest virtual machine, and several loadable hypervisor modules for things like saving and restoring the guest process context when a host interrupt occurs, turning control over to the guest OS to inaugurate execution, and deciding when VT-x or AMD-V events necessity to subsist handled.

    The hypervisor does not collect involved with the details of the guest operating system scheduling. Instead, those tasks are handled completely by the guest during its execution. The entire guest is sprint as a separate process on the host system and will sprint only when scheduled by the host. If they are present, an administrator can exercise host resource controls such as scheduling classes and CPU caps or reservations to give very predictable execution of the guest machine.

    Additional device drivers will subsist present to allow the guest machine access to other host resources such as disks, network controllers, and audio and USB devices. In reality, the hypervisor actually does itsy-bitsy work. Rather, most of the engrossing work in running the guest machine is done in the guest process. Thus the host's resource controls and scheduling methods can subsist used to control the guest machine behavior.

    In addition to the kernel modules, several processes on the host are used to back running guests. complete of these processes are started automatically when needed.

  • VBoxSVC is the VirtualBox service process. It keeps track of complete virtual machines that are running on the host. It is started automatically when the first guest boots.
  • vboxzoneacess is a daemon unique to Solaris that allows the VirtualBox device to subsist accessed from an Oracle Solaris Container.
  • VBoxXPCOMIPCD is the XPCOM process used on non-Windows hosts for interprocess communication between guests and the management applications. On Windows hosts, the autochthonous COM services are used.
  • VirtualBox is the process that actually runs the guest virtual machine when started. One of these processes exists for every guest that is running on the host. If host resource limits are desired for the guest, this process enforces those controls.
  • 5.1.2 Interacting with Oracle VM VirtualBox

    There are two primary methods for a user to interact with VirtualBox: a simple graphical user interface (GUI) and a very complete and circumstantial command-line interface (CLI). The GUI allows the user to create and manage guest virtual machines as well as set most of the common configuration options. When a guest machine is started from this user interface, a graphical console window opens on the host that allows the user to interact with the guest as if it were running on existent hardware. To start the graphical interface, ilk the command VirtualBox at any shell prompt. On Oracle Solaris, this command is found in /usr/bin and is available to complete users.

    The CLI is the VBoxManage command. VBoxManage has many subcommands and options, some of which are discussed in the following sections. To collect a list of complete VBoxManage options, just ilk VBoxManage at any shell prompt. Without any command arguments, VBoxManage will respond with a list of complete valid options. When a VBoxManage command successfully completes, it will print out a banner similar to the one in the following example:

    % VBoxManage list vms Sun VirtualBox Command Line Management Interface Version 3.1.4 (C) 2005-2010 Sun Microsystems, Inc. All rights reserved. "Windows XP" {4ec5efdc-fa76-49bb-8562-7c2a0bac8282}

    If the banner fails to print, an mistake occurred while processing the command. Usually, diagnostic information will subsist displayed instead of the banner. If the banner is the only output, the command successfully completed. In the examples in the remainder of this chapter, the banner output has been omitted for the sake of brevity.


    Nutanix (NTNX) CEO Dheeraj Pandey on Q1 2019 Results - Earnings call Transcript | killexams.com existent questions and Pass4sure dumps

    Nutanix (NASDAQ:NTNX) Q1 2019 Earnings Conference call November 27, 2018 4:30 PM ET

    Executives

    Tonya Chin - Vice President of Investor Relations and Corporate Communications

    Dheeraj Pandey - Chief Executive Officer

    Duston Williams - Chief monetary Officer

    Analysts

    Matt Hedberg - RBC Capital Markets

    Aaron Rakers - Wells Fargo

    Alex Kurtz - KeyBanc

    Wamsi Mohan - Bank of America Merrill Lynch

    Katy Huberty - Morgan Stanley

    Jack Andrews - Needham

    Erik Suppiger - JMP

    Jason Ader - William Blair

    Operator

    Good afternoon. My denomination is Sheryl and I will subsist your conference operator today. At this time, I would like to welcome everyone to the Nutanix First Quarter Fiscal 2019 Earnings Conference Call. complete lines believe been placed on mute to obviate any background noise. After the speakers' remarks, there will subsist a question-and-answer session. [Operator Instructions]

    Tonya Chin, Vice President of Investor Relations and Corporate Communications, you may inaugurate your conference.

    Tonya Chin

    Thank you. Welcome to today's conference call to dispute the results of their first quarter of fiscal 2019 live from London. This call is moreover being broadcast over the web and can subsist accessed in the Investor Relations section of the Nutanix website. Joining me today are Dheeraj Pandey, Nutanix's CEO; and Duston Williams, Nutanix's CFO.

    After the market closed today, Nutanix issued a press release announcing the monetary results for its first quarter of fiscal 2019. If you'd like a copy of the release, you can find it in the Press Releases section of the company's website.

    We'd like to remind you that during today's call, management will gain forward-looking statements within the significance of the Safe Harbor provision of federal securities laws, regarding the company's anticipated future revenue, billings, Gross margin, operating expenses, net loss, loss per share, free cash flow, traffic plans and objectives, product sales, plans and timing for and the impact of their transition to focus more on software-only sales, and their transition to subscription based traffic model, expectations regarding products, services, product features and technology that are under development or recently acquired, competitive and industry dynamics, expectations regarding increasing software sales, their plans regarding how they will report the software content and subscription portion of their business, potential market opportunities and other monetary traffic related information.

    These forward-looking statements involve a number of risks and uncertainties, some of which are beyond their control, which could occasions actual results to differ materially and adversely from those anticipated by these statements. These forward-looking statements apply as of today and you should not trust on them as representing their views in the future. They undertake no obligation to update these statements after this call.

    For a more circumstantial description of these risks and uncertainties, delight refer to their configuration 10-K for the fiscal 2018 filed with the SEC on September 24, 2018 as well as their earnings release posted a few minutes ago to their website. Copies of these documents may subsist obtained from the SEC or by visiting the IR section of their website.

    Also, delight note that unless otherwise specifically referenced, complete monetary measures they exercise in the call today are expressed on a non-GAAP basis, and believe been adjusted to exclude certain charges. We've provided reconciliations to these non-GAAP monetary measures to the GAAP measures in their Investor Relations section of their website and in their earnings press release.

    Lastly, Nutanix will subsist at the Wells Fargo Tech pinnacle in Deer Valley on December 4, the Raymond James Conference, moreover in December 4 in original York City, the Barclays TMT Conference in San Francisco on December 6, and the Needham Technology Conference in original York City on January 15, and they hope to survey many of you there. delight result your calendars for the Nutanix Investor Day in original York City on Wednesday, March 20.

    Now, I'll eddy the call over to Dheeraj. Dheeraj?

    Dheeraj Pandey

    Thank you, Tonya. Great afternoon everyone. I'm excited to subsist joining you today from London where we're hosting their third .NEXT Europe, Middle East and Africa User Conference this week. We're excited to participate their latest updates with more than 3,500 customers, partners and prospects they anticipate at the show. Those attendees will collect to survey firsthand as they promulgate the generic availability of Xi Leap here at .NEXT.

    Leap is a disaster recovery service offering I've mentioned to you in the past. This launch is a watershed moment for their company, delivering their services across the entire customer journey from infrastructure modernization to the multi-cloud, which I'll provide more detail on shortly.

    Now onto their Q1 results, they had a Great start to fiscal 2019, delivering another stalwart quarter growing software and back billings by 50% year-over-year to $351 million and software and back revenue by 44% to $281 million. Notably, subscription revenue increased 104% year-over-year as they shift their traffic to an increasingly subscription-based consumption.

    The combination of higher than guided revenue, better Gross margins and lower operating expenses drove their net loss per participate to $0.13 per share, significantly better than their guidance of a loss between $0.26 and $0.28. Duston will participate more on their monetary metrics and outlook later in the call.

    As they head into .NEXT, I've found myself taking a step back to reflect on how far we've forward as a company since they were founded nine years ago. In less than 10 years they believe done nearly $4 billion in lifetime sales, transformed from a hardware to a software traffic model, while being publicly traded, surpassed $1 billion in annual software and back revenue sprint rate and surpassed the 10,000-customer mark, while keeping their net promoter score above the 90.

    In this quarter alone, they closed 63 deals worth more than $1 million and three deals worth more than $5 million, and they now believe 15 customers who believe lifetime expend of more than $15 million and more than 700 customers with a lifetime expend of more than $1 million. In fact, when you notice at their customer base, they believe seen 83% year-over-year growth in customers with a lifetime expend of $3 million to $5 million and 111% year-over-year growth in customers with a lifetime expend of more than $5 million.

    To achieve their achievements into context, they reached $1 billion in annual revenue faster than any other software company founded in the past 20 years. Salesforce, Palo Alto, Workday included. This success was built on the foundation of stalwart products and astonishing customer service that has propelled us from creating the hyperconverged industry to a sustained leadership position within it. Just this past quarter, they were recognized as a leader in The Forrester Wave for HCI and by Gartner for their 10-point lead in market participate versus their nearest competitor in their most recently reported quarter.

    From everything I've mentioned above, you might contemplate that they are a very optimistic company. On the contrary, they are an intrinsically paranoid company that happens to subsist optimistic. In my favorite book, Only the Paranoid Survive, Andy Grove talks about this paradox in Chapter’s seven and eight. Let chaos reign, reign with a g and rein in chaos, without a g.

    Building is inherently chaotic and you saw a bit of this in the ultimate 12 months of their original product development and complementary acquisitions. These announcements created confusion in the minds of many who aren't simultaneously balancing building and scaling in their day-to-day.

    Questions such as what is the core of your business, will you necessity more than your core to collect to your stated goal of $3 billion in FY 2021, are the original applications even remotely related to the core or will they leverage the existing core, such questions emerged.

    In this earnings call, I would like to reign in some of that messaging chaos with a customer journey that will traverse Nutanix core essentials and enterprise. The core of Nutanix's traffic is infrastructure. They call it the Nutanix Core, with a capital C. It's comprised of their software defined storage stack, AOS, an infrastructure control plane, Prism and increasingly, but optional for the initial leg of a customer's journey, their hypervisor, AHV.

    People content infrastructure is a commodity as it becomes Great enough, and complete the value will go higher up. They're so mistaken. They don't know how arduous infrastructure is to execute and gain a reliable traffic out of. There is a reason why hardware incumbents struggled to monetize OpenStack in response to Amazon. put a question to Oracle, and they'll explain you about complete the pains of building an IL stack.

    Look at how Azure Stack has been a non-starter for Microsoft, as Azure continues to bleed on multiple infrastructure stacks for their various workloads. Google itself has been trying to gain their homegrown core become useful for enterprises, and they've been trying since 2012.

    Observe how VMware is hedging its best bets between three infrastructure worlds, their traditional three-tier comfort zone, their software-defined struggle zone, and the original AWS cannibal zone. Only Amazon AWS has a lawful grasp of infrastructure, and even they will believe to contemplate arduous about how to gain it truly enterprise workload ready and moreover miniaturize themselves, that is, ship code to tens of thousands of sites, to disperse clouds.

    In fact, their dominance in the core is why VMware avoids doing PoC's in accounts when they are in a head-to-head fight. A case in point was a original customer in EMEA in Q1, a major international airport that is one of the busiest in the world. remember how in the ultimate decade, Microsoft Hyper-V wasn't Great enough, despite being bundled with Windows, for many erstwhile VMware customers who had profound enterprise-grade needs.

    With this customer, VMware's good-enough wasn't Great enough to create dynamic, cloud-grade platform for the majority of their core airport applications. Unlike humans who can work around weaknesses in Great enough traffic software, applications cannot work around Great enough infrastructure software they sprint on. Great enough infrastructure is an oxymoron, period.

    This is why we’ve been so successful at adding Nutanix Core customers. These customers deploy AOS and Prism platform and AHV virtualization to modernize and deliver a cloud-like experience within the walls of their own datacenter. Nutanix Core customers represent the foundation of their traffic in the near-term, and are what will enable us to deliver on their goal of at least $3 billion in software and back billings in 2021.

    In Q1, AHV adoption increased to 38% on a rolling four-quarter basis. AHV was a determination factor for one of America's leading operators of generic acute supervision hospitals, their second largest deal of the quarter, which is more than $5 million. This healthcare provider will expand deployment of their platform to back its bailiwick facilities, complete using AHV virtualization.

    Once companies believe experienced the simplicity their platform brings to their core infrastructure, they often quickly and enthusiastically want to graduate and standardize on Nutanix across their IT infrastructure, developing pure-play software-defined cloud platforms for their business-critical workloads.

    These companies are Nutanix Essentials customers, Essentials with a capital E, who build on their Core offering to deliver on security, automation, data management, and operational efficiencies. They execute so with quiet for app-centric orchestration, flow for application security, Files for storage consolidation, and Prism Pro for large-scale operations management.

    What might not subsist obvious is that Essentials runs on top of Core, that is, Essentials pulls Core with it in complete deployments. Case in point on this leverage and crawl-before-you-walk philosophy is one of their US Federal customers, a department within the US Navy. They believe more than $2 million in lifetime bookings with Nutanix and made their first purchase with us in 2016 for VDI.

    Over the following few quarters they expanded to server workloads in the datacenter and started replacement of legacy 3 tier in remote offices, complete with AHV as the hypervisor. Later in their journey, they purchased licenses for Calm, and in Q1, they expanded their Nutanix deployment even further, leveraging their platform across even more remote offices with the addition of both flow and Prism Pro.

    Another example of this customer journey is a $1.5 million deal with a U.S. government agency that provides fact-based, nonpartisan information to Congress. This customer which had lifetime bookings of more than $4 million first experienced Nutanix Core almost four years ago.

    Since then, they believe materially expanded the exercise of their platform, utilizing AHV, managing their unstructured data needs with Files, running complete their enterprise applications, virtualizing their Exchange environment, and finally in this quarter, expanding their VDI environment to 4,000 users.

    Finally, Nutanix Enterprise, Enterprise with a capital E, customers forward into hybrid and multi-cloud deployments with Karbon with a K, Era, Buckets, Volumes and Xi Cloud Services, their original suite of SaaS-based services. This original suite includes Xi Leap for disaster recovery as a service, Xi IoT for edge cloud computing, Frame for cloud-native desktop-as-a-service, Beam for multi-cloud governance and Epoch for multi-cloud application observability and monitoring.

    Most Xi Services exercise Nutanix Core and Essentials. Yet others gain them better by being multi-cloud, thus making their stack compete better with other clouds. There is no Xi without Core and Essentials. I repeat, there is no Xi without Core and Essentials. complete Core and Essentials products, currently running on-prem, will become fraction of the Xi catalog, and that is what every computing company on the pan of this planet covets, a catalog that can sprint both on-prem and off-prem.

    This leverage and the customer journey of crawl-walk-run is evident by how their desist users adopt their solutions. In Q1, 19% of complete their deals involved one or more of their Essentials or Enterprise solutions in addition to their Core offering, calculated on a rolling four quarter basis.

    We’re confident those customers who realize the simplicity and reliability of their Core will continue to recognize the value of their extended platform and continue their journey with us, seamlessly. We've talked a lot about Xi over the past few quarters and, as I mentioned earlier, I'm pleased to content that Xi Leap is now generally available, with future geographies rolling out over time.

    Going beyond that, Xi IoT, their edge computing solution, is moreover generally available, and they believe made significant updates to their Frame desktop-as-a-service offering, adding role-based access control in the cloud. Their customers believe already validated this that there is claim for this set of services in the market.

    In the ultimate brace of weeks, they closed a deal with a public-school district serving over 5,000 students to exercise Xi Leap. They made DR invisible for them. They execute not necessity a backup-and-recovery box on-prem. DR is a huge adjacency for us, and will moreover become a highly automated pass for us to migrate workloads off-prem with one-click.

    In this quarter, they worked with the Google Cloud team to win a deal with an American worldwide consumer products company in the Global 50, their first with this customer, to deliver Frame virtual desktops to their workforce. The customer has invested in Frame, alongside GSuite, a natural partnership for worker productivity in the cloud-first world.

    I'd like to highlight another win worth more than $1 million with life insurance company in India. They believe decided to go forward not only as a core customer with AHV virtualization, but to rapidly graduate to both Essentials and Enterprise with Prism Pro, Calm, flow and Xi Epoch. Their message to suit .NEXT is clear. Xi cloud services from Nutanix are now open for business.

    As many of you know, they made a very successful transition to software over the past year. Recently, we've evolved their traffic model toward an increasingly subscription model designed to deliver more recurring and predictable revenue. This quarter they saw 51% of billings from subscriptions, up 20 points from 31% just a year ago. They are on a very Great trajectory with this transition. Duston will collect into their expectations for how this will play out in just a minute.

    To summarize, over the past year and even today, they believe significantly added to the breadth of their platform, broadening their capabilities to address the challenges their customers tackle as they modernize their IT infrastructure and expand into multi-cloud operations. This product velocity stands as a faultfinding odds for Nutanix.

    Today, they introduced a simple pass to understand their product offerings, based on how their desist users adopt Nutanix. This is about a customer journey, a buyer's journey, a seller's journey, a learner's journey, from infrastructure modernization with Nutanix Core to a customer cloud platform with Nutanix Essentials complete the pass to the exercise of multiple cloud platforms with Nutanix Enterprise.

    In the journey to at least a $3 billion billings in FY 2021, three big workloads or markets will lay on top of Nutanix Core, unstructured data, which is files and objects; structured data, which is databases, and desktops apart from virtualization and containers.

    To conclude, in Q1, they had a stalwart quarter with notable progress in their evolution toward subscription software, stalwart product innovation with many original introductions including Xi Cloud Services and continued stalwart growth in their business.

    Now, I'll eddy it over to Duston to review the monetary highlights of the quarter. Duston?

    Duston Williams

    Thank you, Dheeraj. Before they collect into the review of their Q1 fiscal 2019 results, which for revenue, operating loss, earnings per share, and earnings per participate exceeded both their guidance and consensus estimates, I'd like to provide some historical background on how they started to monetize their software and how they built and will continue to build on this foundation to ultimately go to a fully recurring subscription traffic model.

    The first monetization of their software and the initiation of their recurring subscription traffic actually began when they first started shipping appliances in late 2011, early 2012 with customers, engaging in subscription-based software and back entitlement contracts, basically recognizing the value of receiving continued software enhancements on an ongoing basis.

    In 2014 and 2015, they began selling stand-alone software, including software and back entitlements to their OEM partners, Dell and Lenovo and believe since added Fujitsu and IBM. In 2015 and 2016, they started to separately sell software upsells or additions on top of their base operating systems such as Pro, Ultimate and later Prism Pro. It was moreover in late 2016 and 2017 when they first offered their software through a subscription offering to sprint on HP and Cisco servers.

    During 2017, they began software-only subscription sales of their operating system, which afforded customers the competence to sprint their software on the server platform of their choice. And it was in 2018 that they started another monetization vehicle for their software, a subscription-based sale of their software on Dell XC core and Lenovo XC core products. Along the way, they moreover began selling subscription-based sales of additional software offerings such as Calm, Flow, Files and more recently SaaS-based offerings such as Beam, Frame and now Xi Leap.

    So, as you can see, their go to software has been planned and executed from day one and has progressed significantly over a several-year epoch and their go to a fully recurring subscription traffic model will recall a similar path thoughtfully planned and executed over an extended epoch of time. As they discussed in their ultimate earnings call, the go to a fully recurring traffic model will involve changes to how their software solutions will subsist packaged for their historically nonportable software sales.

    We stated that they would inaugurate a phased-in approach that will transition their non-portable software sales to recurring subscription licensing model. They further stated that this would supersede today's licensing structure, which is based on the life of device giving customers greater selection and flexibility around their software procurement strategies and provide portability of the software.

    We moreover discussed that they would implement this change genesis in Q2 2019 and ramping through the second half of fiscal year. I'm pleased to promulgate that they had a bit of an early start with this transition and in Q1, they transacted over 110 customers on this original licensing methodology. These transactions included enterprise, commercial and SMB customers, original and existing customers, as well as a Great merge of customers from complete geographies.

    Although we're off to a promising start with their shift to a fully recurring software traffic model, like their shift away from hardware, we're not unaffected regarding the work that silent needs to subsist done, with both back-office systems and front-office education to gain this transition a complete success. As you might expect, they believe both plans with the shift to a fully recurring software model.

    In FY 2017, their subscription traffic accounted for 31% of their billings, in FY 2018 their subscription traffic accounted for 41% of billings and in Q1 2019, the subscription traffic accounted for 51% of billings. In Q1 alone, their original term-based licensing accounted for over $20 million in bookings. They believe that in the next four to six quarters, their recurring subscription traffic will compass 70% to 75% of total billings. And by FY 2021, they anticipate a big majority of the traffic should subsist recurring in nature, either on-prem or cloud-based.

    In their view, this continued shift to recurring subscription traffic model combined with retention rates averaging 90% and an medium constrict duration epoch of 3.6 years demonstrates increased visibility and predictability into their model as the company moves away from life of device licenses. They will provide further thoughts on how they envision the progression of their recurring subscription traffic model during their Investor Day, which will recall district on March 20 in original York.

    Now, touching onto a few Q1 highlights. Revenue for the first quarter was $313 million, growing 14% from a year ago and up 3% from the previous quarter, ahead of their guidance of $295 million to $310 million. This performance excludes approximately $104 million in passthrough hardware eliminated in the quarter. Software and back revenue was $281 million in Q1, up 44% from the year-ago quarter and up 5% from the prior quarter. Total billings were $384 million in the quarter, representing a 22% extend from the year ago quarter and a 3% dwindle from Q4.

    Software and back billings were $351 million, growing 50% from the year ago quarter and decreasing 2% from the prior quarter. On a billing’s basis, passthrough hardware represented 8% of total billings. This is slightly higher than what they expected and is mostly related to geographic merge and timing of orders. The bill to revenue ratio in Q1 was 1.22, slightly lower than the projected 1.26 reflecting a diminutive change in product mix.

    Our Q1 deferred revenue increased by $71 million from Q4, up 72% from a year ago and up 11% from the previous quarter, ending the quarter at $702 million. original customer bookings represented 24% of total bookings in the quarter, down from 29% in Q1 2018. They had a record number of customers booking deals greater than 1 million in the quarter. Customers with bookings greater than 500,000 represented almost 50% of bookings in the quarter.

    We had a stalwart Global 2000 performance in Q1 with G2K software and back bookings equaling 31% of the company's total software and back bookings in Q1, up from 28% in Q4 2018 and 26% in Q1 2018. In Q1, their software and back bookings from their international regions were 40% of the company's total software and back bookings, up from 36% in Q1 2018.

    Our non-GAAP Gross margins grew in Q1 to 78.6%, up from 61.9% in the year ago quarter and 77.7% in the prior quarter. Operating expenses were $272 million versus their guidance sweep of $280 million to $290 million. Fewer headcount additions accounted for most of the shortfall. On a non-GAAP basis – on a non-GAAP, net loss was $24 million for the quarter or a loss of $0.13 per share.

    Few equilibrium sheet highlights. They closed the quarter with cash and short-term investments of $965 million and was up from $934 million in Q4. DSOs on a straight medium were 69 days, an improvement of nine days from ultimate quarter. The weighted medium DSO was 24 days in Q1.

    We generated $50 million of cash flow from operations in Q1, which was negatively impacted by $13 million of ESPP outflow and they generated positive $20 million in free cash flow during the quarter. This performance was moreover negatively impacted by the $13 million of ESPP outflow in the quarter.

    Now turning to guidance for the second quarter. On a non-GAAP basis, they anticipate the following for Q2. Billings between $410 million and $420 million, revenue between $325 million and $335 million, Gross margin between 78% and 79%, operating expenses between $300 million and $310 million, and a per-share loss of approximately $0.25 using medium shares outstanding of 180 million.

    I'll just wrap up with a few final comments now. They are now at a point where the billings hardware passthrough merge will bounce around in any given quarter at a moderately immaterial rate between a low of 5% or less and a high of 10%, again with most of this variability related to geographic merge and timing of orders.

    We anticipate this to continue for this foreseeable future. Regardless of the actual rate in any given quarter, they would silent anticipate Gross margins to remain in the [high 70’s]. And they will, of course, continue to provide the actual hardware percentage each quarter.

    Additionally, as I mentioned before they believe bought about at a constant situation sweep with the percentage of passthrough hardware that they experienced in any given quarter. Therefore, genesis in Q2, the quarterly decline in year-over-year growth in total billings and total revenue that we've experienced during their transition away from passthrough hardware is expected to moderate and growth will eventually reaccelerate as they depart forward.

    And with that, operator, if you could delight open the call up for questions that would subsist great. Thank you.

    Question-and-Answer Session

    Operator

    [Operator Instructions] The first question comes from the line of Matt Hedberg of RBC Capital Markets. delight depart ahead, your line is open.

    Matt Hedberg

    Hi guys, thanks for taking my question. Congrats on the stalwart results here. Dheeraj, I'm wondering, can you give us a bit more color on the crawl-walk-run message for Core, Essentials and Enterprise? And is the privilege pass to contemplate about this as a software bundle or is it silent sort of like a la carte within these different tiers?

    Dheeraj Pandey

    Yes. Thank you, Matt and thanks for the question. So, as I mentioned, they notice at this as a journey for the customer, a journey for their seller, a journey for their channel seller and a journey for anybody who's getting enabled on selling and really furthering their products. So, in that sense, we’re not using this as a expense bundle, we're not using this as a pass to content look, you will depart and buy something based on a certain expense engage or SKUs assigned to Core, Essentials and Enterprise.

    What's really famous is people to realize that Essentials uses Core and Enterprise uses Essentials and Core. So, there is a progressive utilization of the products and these are not disparate products, they're not like completely misaligned with each other. Even Frame for example, which is a SaaS-based service, very soon in the next brace of quarters, we'll depart and exercise on-prem Nutanix including off-prem Xi.

    So, if you contemplate about it, a lot of these service offerings will actually start to exercise both on-prem Core and Essentials and off-prem Core and Essentials running in Xi as well. So, I contemplate the understanding here was to basically depart and educate and enable their customers and their sellers to realize that there is a progressive pass to collect to what these original offerings in the SaaS world are.

    Matt Hedberg

    That's helpful. And then maybe a follow-up for Duston. You eliminated $104 million of passthrough hardware revenue. I contemplate you said that was about 8%. inquisitive going into the quarter what were the expectations for Q1? I just wanted to collect a sense for the delta in that mix.

    Duston Williams

    Yes, I contemplate it's – I don't believe the exact calculation, but it's probably somewhere around maybe 5% or $5 million differential, somewhere around there, maybe a itsy-bitsy bit more, but somewhere in that ballpark.

    Matt Hedberg

    Got it, thanks. Thanks. Thanks a lot guys.

    Operator

    Your next question comes from the line of Aaron Rakers of Wells Fargo. delight depart ahead, your line is open.

    Aaron Rakers

    Yes, thanks for taking the questions and moreover congratulations on the quarter. Just as they benevolent of contemplate about the transition that you guys are now executing through, I'm inquisitive if there's a pass for us to frame how much of your subscription revenue growth is at this point being driven by the transition of your existing customer base from the portable – or I'm sorry the nonportable software revenue relative to the monetization effects of some of the additional offerings, subsist it Flow, Beam, et cetera? I'm just benevolent of inquisitive of how they contemplate about the merge within that subscription revenue between those items.

    Dheeraj Pandey

    I contemplate the lion's participate of this transition is going to forward from the Core and how people consume the Core because these are complete node-based licensing, if you remember for the ultimate five, six, seven years, and now we're touching to a capacity-based method, which is basically term based. And the fact that it's portable is what makes us exercise it for subscription as opposed to life of device. So, I would content that it's early to content that anything with the Enterprise, SaaS or Xi cloud services, adding to the mix, most of it is really coming from Core and Essentials.

    Aaron Rakers

    Okay. And then as a existent quick follow-up, I'm just inquisitive as you guys gain this benevolent of pivot in the strategy, how execute you contemplate about the competitive landscape? And I contemplate importantly, the competitive landscape evolving, you know looking out over the next 12 to 24 months, has there been any change currently and who execute you view as actually your most formidable competitors going forward?

    Dheeraj Pandey

    Yes. So, in terms of the competitive landscape, nothing has changed in the ultimate quarter or so. It's silent a lot of on-prem three-tier hardware vendors who used to sell blade chassis and fiber channel switches and storage arrays. So, you depart and collapse complete that with the software defined infrastructure. And they survey enough for VMware, but they don't survey enough of VMware and about 70% of the transactions are POCs and not seeing VMware, VMware. And they are going after very high-end workloads as well. And the other accounts where they execute survey VMware, I contemplate we're going for head to head fights.

    We're going with – I mentioned this in my script as well, I matter they really want to depart after POCs, proof of concepts, with VMware. We've built some highly automated testing tools and they really believe that customers are looking for the identical high quality that they were expecting from these three-tier hardware deployments to forward from a software defined infrastructure. As I mentioned I contemplate nothing had changed in that respect in the ultimate year itself.

    Now, Dell EMC definitely is closer to VMware than it was, let's say, a year or two ago. But even there they believe navigated competition waters really well. They believe moved to Dell XC Core products and XC Core is basically meeting the channel where they actually exercise a certified Dell hardware. So, in many which ways, they are driving their own brand and their own pool from the customers and many of these things are coming directly from the customers that they want to transform themselves.

    They are looking at subscription-based pricing, because OpEx is Great for them as they notice towards cloud consumption and such. So, I contemplate in that sense, the next 18, 24 months is going to subsist a lot of VMware, a lot of three tier, maybe you survey a itsy-bitsy bit of Azure Stack, if at all, if you survey any Azure Stack. And over the course of the next six quarters maybe some Azure as well.

    Aaron Rakers

    Very good. Thank you.

    Operator

    Your next question comes from the line of Alex Kurtz of KeyBanc. delight depart ahead. Your line is open.

    Alex Kurtz

    Thanks guys. A question and then a clarification. So, Dheeraj on the transition to subscription, can you just remind us how the sales organization, as well as the channel will subsist sort of the quotas in the compensation models will change if at all, as they depart through this over the next 24 months? What should they anticipate and survey from the outside when they hear about this transition and what it means to quarterly execution?

    Dheeraj Pandey

    Sure. Yes, so I'm going to chime in Duston you should moreover add to this. So, privilege now, in terms of what we're collecting and what we're even seeing from the customers, they execute want to survey three-year deals and five-year deals and such. So, I anticipate that some of this will subsist driven by the market forces. privilege now, their comp has not changed because the three-year sort of subscription collection is pretty similar to what they execute in the life of device.

    Now, as they depart and really notice at the lower and the midmarket where there might subsist some expense pressure, they might start to execute a few more one-year deals, but it's very early to content anything regarding that. And maybe that market will subsist driven more by inside sales. There could subsist a original compensation strategy for inside sales and the territory managers, the commercial account managers, who don't deal with enterprise or global accounts themselves.

    And did you believe a second question, second fraction of the question?

    Alex Kurtz

    Well, just – that's helpful. Thank you. Then just a clarification around one of your hardware partners has been in the advice in the ultimate brace of months. And I was just wondering if you guys could recall a haphazard to explain what you've seen from your side, any potential disruption around that hardware partner and it really matters at complete as you notice into the repose of the quarter and the fiscal year?

    Duston Williams

    Yes, Duston, and then I'll let Dheeraj to chime in as needed here. We've been pretty upfront about this that they were notified back I contemplate in March of this through the identical reporter actually and they at that time did a thorough investigation and found nothing, took it very seriously. And then this latest round they did the identical thing, worked with Super Micro again, took it seriously, found nothing. And relative to the quarter, there were some questions and things like that, but there was no impact to the quarter really at complete from this issue.

    And I contemplate the famous thing to remember here is that their software runs on seven different server platforms. So, if anybody did believe an issue, they've got effectively six other choices, seamless choices, if you will, to depart around this – their software on. So, no impact for the quarter and they found no issues, whatsoever with those allegations.

    Alex Kurtz

    Thank you.

    Operator

    Your next question comes from the line of Wamsi Mohan of Bank of America Merrill Lynch. delight depart ahead, your line is open.

    Wamsi Mohan

    Hi. Thank you. Dheeraj, I was wondering if you can just observation on how you view the potential opportunity for multi-cloud management in view of sort of IBM, Red Hat deal announcement? And I believe a result for Duston.

    Dheeraj Pandey

    Sure. Thanks, Wamsi. So, it's early days, the multi-cloud word is a buzzword, just like cloud was a buzzword, maybe three years ago and continues to subsist a buzzword today. The way, at least, they notice at it is that there will subsist necessity for a new, and I'm going to exercise a metaphor, a hypervisor of virtualization stack on top of multiple clouds, just like there was a necessity for virtualization or a hypervisor across multiple servers and across multiple storage boxes on-prem.

    So, they achieve a layer of software that virtualized servers and storage apparatus and they want to execute the identical across multiple cloud stacks themselves. And in that they believe built a few mechanisms, in fact we'll promulgate a few of them tomorrow around migration and drag and drop from one cloud to another, on-prem to off-prem, disaster recovery seamlessly with one click, so migration becomes a killer app for multi-cloud, just like it was a killer app for – within the on-prem world, the killer app for VMware was VMotion and Storage VMotion and DRS, HA.

    And complete these were just about touching the app when it failed, when it was hotly contended in a high load environment and when it needed to go from an used box to a original box. VMware became a very big company because of building seamless mobility across different hardware boxes and that's what's required across multiple clouds itself. And that's how you commoditize anything. You commoditize anything by virtualizing and you virtualize something by bringing portability of applications in a one-click seamless fashion.

    So, if you contemplate of this portfolio of products that they believe in the multi-cloud world, they are either a policy engine that tells you what is wrong like maybe because of cost or because of governance or security or compliance reasons and then how execute you rectify and rectify it, which is where you necessity to invoke a mechanism for migrating it from one cloud to another. So, both the mechanisms and the policies will configuration the original quote-unquote, hypervisor in a multi-cloud world.

    So, it's very early days to content exactly what will happen, but what I can explain you is that what is needed in that is a lot of migration mechanisms around storage and networking and security and identity because you believe to go an entire app from one cloud stack to another and it takes a lot of doing.

    So, as a company we've done a really Great job of data, data migration, whether it's replication or disaster recovery and runbook automation and things of that nature. But now I contemplate the bar will subsist raised with security and firewalls and networks and things like that. So, how IBM/Red Hat navigate that it's early. I mean, at some plane I contemplate as IBM puts its arms around the OpenStack stack, I contemplate clarity will actually emerge.

    Wamsi Mohan

    Okay, thanks Dheeraj. And Duston, just a quick one for you, prize the incremental revenue breakout that you guys gave. I was just wondering if in just some qualitative terms you could talk about how much of that subscription merge is currently term-based versus SaaS versus back entitlements, any directional color there will subsist helpful? Thank you.

    Duston Williams

    Well, of course privilege now there is very itsy-bitsy SaaS in there. As you'd anticipate that would build up over time. And I don't believe the exact – they can collect it for you, I don't believe the exact split there on the subscription pieces there. There is multiple pieces there with support, but they can collect that to you. You've got it almost from the prior breakouts that we've done there, but we'll collect that to you.

    Wamsi Mohan

    Okay. Thanks, Duston.

    Operator

    Your next question comes from the line of Katy Huberty of Morgan Stanley. delight depart ahead. Your line is open.

    Katy Huberty

    Thank you. Question for Dheeraj, first you mentioned that hybrid multi-cloud is becoming a buzzword and we've certainly heard it from just about every infrastructure hardware, software company this quarter. So, inquisitive how you contemplate it impacts your business. Are you seeing your pipeline growing, customers coming to you because competitors are affirming your strategy? execute your sales people believe to expend more time explaining the contrast between your strategy and some of the others, just how this evolves as more players result your lead?

    Dheeraj Pandey

    Yes, thanks, Katy. Yes, I contemplate they definitely depart and talk from the position of their energy as opposed to a position of someone else's energy and many of the customers they depart and talk about their adjacency and their adjacency. Their adjacency is on-prem privilege now and their adjacency is on-prem which is software defined infrastructure. And then they depart talk about disaster recovery as a service, like hey, how about the first crawl piece of this multi-cloud journey where they can execute one click fail over and testing and fail back and things.

    All of a sudden, the app is mobile because they did complete the arduous work with runbook automation shipping data and things like that. So, they basically start with their adjacencies and then there is some of these multi-cloud services that are very adjacent to Nutanix like desktops is very adjacent to what they believe really understood and embraced. In the ultimate seven, eight years, they probably are one of the strongest companies to understand desist user computing experiences across Citrix and VMware and now with Frame itself.

    And now people are asking about Frame to subsist extremely multi-cloud, exercise my AWS credits, exercise my Azure credits. I talked about one of their experiences with co-selling with Google G suite itself. So, I contemplate they are going and navigating this multi-cloud buzzword around their adjacencies. So, they don't talk fluff. I contemplate most of the money is silent coming from compute and storage and networking and security and some of these workloads around that like files, like databases, like desktop. So, I contemplate they put a question to their sellers to actually depart and focus on workloads because workloads and applications is where most journeys actually begin.

    Katy Huberty

    Understood. And Duston software and back billings came down a bit this quarter. Is that just original seasonality as the traffic scales or was there some impact of the subscription transition in the quarter, if so, how much?

    Duston Williams

    Yes, no, there really wasn't any impact to content on the subscription piece. Actually, when you notice at the length of these original licenses, the $20 million, it's slightly higher than the 3.6 average. So, there really wasn't any tilt to one year or anything like that in that. But they had – just looking and addressing billings in total, they had guided billings down actually in Q1, they came off a really stalwart Q3, a really stalwart Q4 into a seasonally soft Q1 so that they had guided $370 million to $390 million of total billings and obviously they came in at roughly $384 million, so close to the top desist of that range. So, it was benevolent of as expected there and the pieces benevolent of fell off as they did.

    Katy Huberty

    Okay. Thank you. Congrats on the quarter.

    Operator

    Your next question comes from the line of Jack Andrews of Needham. delight depart ahead, your line is open.

    Jack Andrews

    Good afternoon. Thanks for taking my question. Dheeraj, it looks like to me you are achieving the highest growth rates with customers that are spending the most dollars with you. You talked about the 111% year-over-year growth and customers spending more than $5 million. So, I was wondering if you could drill down on what's happening with these larger dollar amounts in particular, I matter what's really driving that and execute you view benevolent of these big dollar amount activities as leading indicators for the repose of your customer base?

    Dheeraj Pandey

    Thank you. Yes, I contemplate what you're seeing is the first phase of what they talked about as segmentation almost 18 months ago in around February of 2017. They talked about segmentation. So, in that first phase of segmentation of their sales oblige they moved up market and that creates a lot of opportunity for cross sells, upsells, more workloads, expanding workloads. And in fact, they believe shown that through their reiterate traffic numbers that they believe actually grown across their customer base itself.

    The next phase of the segmentation will subsist around inside sales and how execute they really depart about these mid-market customers, lower-end mid-market customers themselves and you will survey that chance in the next 12 months. I contemplate they believe settled down on the upper half of the pyramid, now they are going for the middle of the pyramid in some sense with channel investments and inside sales investments and such. So, I contemplate it's a barbell strategy for us. One desist of the barbell is big customers. The other desist of the barbell is a frictionless transactional traffic and they anticipate to actually depart and pattern that out in the coming quarters and beyond.

    Jack Andrews

    Thanks. And then just as a follow-up, could you maybe frame what your customer base looks like today in terms of mapping it to the Core, Essentials and Enterprise layout that you introduced? What it looks like today and how you survey that trending over time?

    Dheeraj Pandey

    Yes, in fact they started – they introduced a original KPI in their infographic and I spoke about it as well. And in fact, it's going to subsist in the investor deck too. 19% of complete their deals that believe one or more products beyond Nutanix Core, so obviously everybody has Nutanix Core except for maybe one or two customers that are not using Nutanix core, because they're Frame customers that are using desktop as a service in AWS or Azure. But other than that, it's complete Nutanix Core customers. And they will start to report on this on a quarterly rolling four quarter basis going forward. And maybe someday they will actually even content how many of their customers believe both Core and Essentials, how many of their customers believe Core, Essentials and Enterprise as well as these numbers start to really forward together.

    Jack Andrews

    Great. Well, thanks and congratulations on the results.

    Dheeraj Pandey

    Thank you.

    Operator

    Your next question comes from the line of Erik Suppiger of JMP. delight depart ahead, your line is open.

    Erik Suppiger

    Yes, thanks for taking the question. brace of things. One, on the Enterprise and Essentials ratio what benevolent of contribution – if 19% of deals embrace products from those product categories, how are revenues going to track to that longer term? execute you envision that customers that are buying multiple products would the Core product, would the Core – would the Essentials and Enterprise products eventually eclipse the Core component of those customers or how can that – how can that revenue contribution look, if you notice out a few years?

    Dheeraj Pandey

    Yes, one Great thing about the nomenclature is that it's timeless. Over time more things will actually Fall into essentials and then some things will Fall from essentials to core itself, because as technology matures, some things become Essentials and then other things that were Essentials now become Core itself. So, they anticipate that we'll start to bolster more of the Core. I matter some things might even Fall off the Core because everybody knows that that's really needed anyway. So, might not even talk about, for example, let's content Prism being fraction of the core because Prism is assumed to subsist fraction of the core.

    Similarly, AHV might become fraction of the Core and then over time if they really start doing 80% of everything at AHV you might say, look, why even talk about it actually. So, I contemplate the entire understanding of this nomenclature is that over time things will go from Enterprise to Essentials and from Essentials to Core. But the customers start to experience the journey from Core, especially the original customers who never heard of Nutanix before and there is quite a few out there. I matter today when you notice at just Americas Global 12000, we've barely scratched the surface. We've only 15% penetration in Americas Global 12000. So, even on the 85% of the customers will necessity to depart through the experience of Nutanix Core then the Essentials, then the Enterprise.

    Erik Suppiger

    On the AHV piece, it's been on a pretty Great trajectory. I contemplate it increased about 3% over the past quarter. When does that start to compass a maturing level? When are they going to survey that contribution of AHV customers basically stabilize?

    Dheeraj Pandey

    You just saw me talk about the Global 12000 Americas lonely and they are only 15% penetrated there. So, there's a lot of original customers and I contemplate there is basically a three-layered cake there, which is the Global 500 and the Global 2000 and the Global 5000. And they complete believe different kinds of needs. I matter many folks in the Global 5000, they're looking at VMware, as the original Oracle like there's a lot of predatorial practices around licensing and auditing and things of that nature happening. The people are saying, look, I really want to notice at virtualization as a commodity actually, it doesn't really belong in like multi-million-dollar sort of in expense and things like that.

    And then there are other customers who prize VMware and then yet other customers who are actually completely, I would say, neutral to what the virtualization stack itself looks like. So, they are going to survey a lot of progression in this over the coming two, three years. I don't anticipate this to actually materially stabilize at least for the next two years. And obviously complete of Xi is AHV. So, if you contemplate about their cloud offering, what we're using in Xi is complete AHV. And the best fraction is that without being too self-righteous we're saying, look, they will actually back merge mode customers where the on-prem that they're running is VMware and the off-prem could subsist AHV, and that's what customers really like about us that they don't depart and shove AHV down their throat. We're saying, look, if you are blissful with VMware, tarry with it, because you can silent depart and sell a lot of data services and network services and compute services on top of it actually.

    Erik Suppiger

    Very good. Thank you.

    Operator

    Your next question comes from Jason Ader of William Blair. delight depart ahead, your line is open.

    Jason Ader

    Thanks, guys. I guess the first question is just on the macro environment. If you could provide some commentary on what you're seeing out there, whether you've seen any changes given some of the benevolent of political fluctuations? And then the second question is benevolent of on this multi-cloud hypervisor vision for you Dheeraj. As you contemplate about what you necessity – the pieces that you necessity to collect there, I would contemplate Kubernetes is pretty critical, just because it's being seen as in a lot of ways the key benevolent of common denominator of SaaS cloud. So, any observation would subsist appreciated on what your plans are for Kubernetes development?

    Duston Williams

    Yes, just on the macro, Jason, they always are looking at it and making positive that we're not missing anything, but clearly, they haven't seen any slowdown in their traffic anyway now. We're not a $20 billion company that would believe insights into everything, but certainly within their realm anyway we've seen really no signs of that. Obviously, they notice at it complete the time and a lot of companies are having issues one pass or another with currency. We're fortunate to subsist selling obviously in U.S. dollars and things like that. So, we've got that reasonably covered from that perspective, but they continue to notice at it and continue to monitor it and subsist alert of it, but there is nothing privilege now, that they survey that's impacting the business.

    Dheeraj Pandey

    Yes. And yes, they believe levers to gain adjustments as needed and people versus programs, things of that nature. And obviously nobody has a crystal ball around this. This is going to subsist a black swan event whether they like it or not, and I contemplate the people versus programs levers piece is an famous piece of their strategy going forward. As they survey anything really dampening with the macro, I contemplate we'll believe ways and means to depart adjust accordingly actually.

    And talking about your Kubernetes comment, definitely Kubernetes makes compute very mobile and portable, but then there is everything else around it that really needs to subsist made portable as well which is storage and networks and identity and security and I matter there's a ton of pieces around [net stack] and storage that necessity to subsist portable as well. And I contemplate it's one of the core advantages of Nutanix is that they really understand data, data migration, replication, backups, things of that nature, plus they understand networks now.

    For the ultimate brace of years, they focused so much on networks, around networks and security. I matter Xi would not believe been feasible without really digging deeper into multi-tenant networks. Like, what does it matter to really go an entire primary site from on-prem to off-prem without changing even a separate IP address is a very arduous problem that they had to depart unravel for.

    So, a lot of the network virtualization pieces that believe forward together in Xi gain us really competitive in the space of portability of applications, but Kubernetes lonely doesn't gain an application portable because there's a lot more to an application situation than just sitting on the server itself, which is basically just software. That software needs storage, that software needs other services like protest storage clusters and file storage clusters and dynamic directory and VLAN settings and load balancers and firewalls setting, complete those things believe to go around before you call Kubernetes to subsist the end-all and be-all of migration.

    Jason Ader

    And on the [indiscernible] from you guys, is that something that you back today, Kubernetes?

    Dheeraj Pandey

    Oh, absolutely. In fact, they believe gotten really profound into Kubernetes over the ultimate 12, 18 months. This is one of the biggest advantages of their architecture that complete their core now runs as containers, complete their core. And that has been a expansive issue with many other companies that actually sprint inside the kernel, inside the hypervisor. You can't depart and really infuse the value of containers inside the kernel of a hypervisor because it actually was written 15-18 years ago and they didn't contemplate about services, they didn't contemplate about patch upgrades, peppery upgrades, reboot-less upgrades. Many of these things that Kubernetes actually makes feasible we've been able to execute in their own software.

    Now people can sprint Kubernetes containers on top of Nutanix. So, one thing that they actually really went on the path of saying, look, no change to the open APIs and CLI of Kubernetes, unlike Pivotal and Red Hat who actually added wrapper stuff around there. They are going and saying, whatever open source is, is what they will actually depart and support. So, things like Kubectl and complete the APIs are exactly the same. And in fact, even on Calm, which is the orchestration layer that they have, we’re epigram the app specification of Kubernetes is a subset of Calm's app specifications.

    So, you can recall a very well formed Kubernetes back and achieve it inside quiet and now you believe a hybrid app, which is both a combination of containers and virtual machines actually, which is probably going to subsist one of the hardest things that IT will struggle with is, now my entire app is not containerized, I believe things that are running as containers within an app and believe other things like database tiers that are running in virtual machine. So, how execute you really depart and gain a hybrid application possible? How execute you gain it auto scalable? How execute you upgrade it? How execute you migrate it? And complete these verbs of an app, which is backup, replicate, scale out, upgrade, migrate, complete these verbs in the app are now feasible with Nutanix in a very hybrid setup, which is both combination of containers and VMs. And that's where the money will be.

    Jason Ader

    Thank you.

    Dheeraj Pandey

    Our IT ops – they believe to depart and talk to IT ops in a pass that is mundane, but it is silent pragmatic and realistic about the transition to containers because overnight we're not expecting every piece of the app to become containerized.

    Jason Ader

    Great.

    Operator

    This concludes today's conference call as we’ve completed the allotted time for questions. Thank you for your participation.

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    Operations & Process Management: Principles & Practice for Strategic ImpactOperations & Process Management: Principles & Practice for Strategic Impact
    By Nigel Slack, Alistair Jones
    Publisher : Pearson (Feb 2018)
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    Publisher : Pearson (Aug 2017)
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    Urban EconomicsUrban Economics
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