Nutanix, Inc. (NTNX): Business Model Canvas [Dec-2025 Updated]

You're looking to map out the engine room of Nutanix, Inc., and after a decade of watching these transitions, I can tell you their FY2025 data shows a defintely successful shift to a subscription-led model. This isn't just about selling software; it's about simplifying hybrid multicloud complexity for large enterprises, all while racking up $2.22 billion in Annual Recurring Revenue by Q4 FY2025 on total GAAP Revenue of $2.538 billion for the year. The whole structure hinges on deep R&D investment and strategic alliances-think NVIDIA for AI workloads-to keep that recurring revenue stream flowing strong. To see precisely how they structure their value capture, from channels to customer relationships, check out the full Business Model Canvas we've mapped out below.

Nutanix, Inc. (NTNX) - Canvas Business Model: Key Partnerships

You're looking at how Nutanix, Inc. builds its platform value through strategic alliances, which is critical given the shift away from legacy virtualization. The partnership strategy is clearly focused on hybrid multicloud agility, AI enablement, and hardware choice.

Strategic Alliances with Hyperscalers

Nutanix, Inc. continues to deepen its public cloud presence, ensuring its software stack runs consistently across major providers. Nutanix announced the public preview of Nutanix Cloud Clusters (NC2) on Google Cloud in May 2025, building on its existing support for AWS (since 2020) and Azure (since 2022).

The goal is to provide the same operating model and full portability of licenses across all major cloud hyperscalers. This enables use cases like seamless cloud migration, elastic scaling, and disaster recovery. Furthermore, the Nutanix AOS hypervisor is now fully cloud native on Amazon's Elastic Kubernetes Services (EKS).

Technology Integration with NVIDIA for Enterprise AI Solutions

The focus on Enterprise AI is heavily reliant on the extended partnership with NVIDIA Corp. This collaboration integrates advanced AI agent models directly into the enterprise IT workflow. This is key for customers wanting to deploy production-grade large language models (LLMs) with control.

The latest release of Nutanix Enterprise AI (NAI) features deep integration with NVIDIA Enterprise AI, specifically including the NVIDIA NIM™ and NVIDIA NeMo™ framework. This integration helps simplify the building, running, and management of models and inferencing services across various environments.

Hardware and Storage Partnerships

Nutanix, Inc. has moved to support external storage, removing a barrier for customers with existing hardware investments. This strategy allows for the independent scaling of compute and storage.

The Dell PowerFlex integration allows Nutanix AHV and AOS to run on PowerFlex compute nodes, consuming shared storage from a PowerFlex cluster. For Pure Storage, the integration supports scale-out block storage for AHV, offering features like SafeMode snapshots for cyber resilience.

Global Channel Ecosystem via the FY25 Elevate Partner Program

The global channel remains vital, structured around the FY25 Elevate Partner Program, which centers on profitability, trust, and innovation. The program features a new, exclusive Premier level for top-performing partners.

The structure is designed to make it easier to advance based on sales performance or new customer acquisition velocity. Partners had until January 31, 2025, to meet the revenue attainment and program requirements to achieve the Premier status. This builds on prior incentive structures, such as the FY24 program where partner sellers could earn a 2% incentive, up to $7,500 per deal, for new business.

The program supports a strong customer focus, evidenced by Nutanix achieving an average Net Promoter Score (NPS) of 90+ over a 9-year period.

The FY25 Elevate Partner Program emphasizes:

• Refined Program Structure with rebalanced levels.
• Enhanced Recognition and Benefits, including the Outperformance rebate for Premier partners.
• Expanded Learning Opportunities covering the entire Nutanix Cloud Platform solution.

Cybersecurity Ecosystem Partners

Nutanix, Inc. augments its secure-by-design Nutanix Cloud Platform (NCP) with a broad security ecosystem. The platform is supported by over 120+ partnerships across various cybersecurity domains. This helps customers achieve a defense-in-depth posture across application, data, network, identity, and cloud security.

Key integrations for vulnerability management include native plug-ins with API integrations for Nutanix AOS and AHV, developed in partnership with leading tools from Qualys and Tenable. For data security and cyber resilience, Nutanix supports immutable backup via WORM buckets with partners like Cohesity, HYCU, Rubrik, and Veeam. Other named security ecosystem partners include CyberArk and Palo Alto Networks, alongside integration with CrowdStrike for threat correlation.

Nutanix, Inc. (NTNX) - Canvas Business Model: Key Activities

You're looking at the core engine driving Nutanix, Inc.'s performance as of late 2025. The key activities are all about execution on the subscription transition and platform unification, which is clearly reflected in the numbers.

Research and development (R&D) of the Nutanix Cloud Platform (NCP) remains a top priority to keep the platform ahead in the hybrid multicloud space. This investment underpins the entire software-first strategy. For context on the scale of this focus, R&D investment accounted for nearly 29.21% of revenue in the prior fiscal year, signaling a sustained commitment to innovation that continues into FY2025. The platform itself, the Nutanix Cloud Platform (NCP), provides that unified stack running seamlessly across data centers, the edge, and public clouds.

The activity of transitioning customers to the subscription-based software model is the financial bedrock now. This shift is what drives the predictable revenue you see in the reports. At the close of fiscal year 2025, Annual Recurring Revenue (ARR) stood at $2.22 billion, marking a 17% year-over-year increase. This successful transition is a major reason the company achieved a Rule of 40 score of 48 for the full fiscal year 2025.

Developing cloud-native solutions like the Nutanix Kubernetes Platform (NKP) is how Nutanix, Inc. captures the modern application workload. This activity is validated by market recognition; Nutanix was positioned as a Leader in The Forrester Wave™: Multicloud Container Platforms, Q3 2025, following the launch of NKP. This focus on modern apps, alongside AI infrastructure integration, is key to their strategy to be the de facto platform for running applications anywhere.

Global sales and marketing to acquire over 2,700 new customers in FY2025 is a direct measure of market penetration. The company added over 2,700 new customers in fiscal year 2025, which was their highest customer addition number in four years. This sales success contributed to a total fiscal year 2025 revenue of $2.54 billion, an 18% increase year-over-year.

Managing and maintaining a unified hybrid multicloud operating system involves ensuring the core platform is sticky and widely adopted. The adoption rate of Nutanix AHV, their native hypervisor, reached 88% by the end of the fiscal year. This unified management capability across environments is what supports the strong financial metrics, including a Non-GAAP Operating Margin of 21.1% for the full fiscal year 2025 and Free Cash Flow (FCF) of $750 million.

Here's a quick look at the financial outcomes directly tied to these key activities in FY2025:

The operational efficiency achieved through this unified platform is evident in the margin performance:

• GAAP Gross Margin: 87.2%
• Non-GAAP Operating Margin: 21.1%
• Rule of 40 Score: 48

Furthermore, the commitment to the platform's flexibility is shown by the expansion of supported infrastructure. For instance, the Nutanix Cloud Platform now supports external storage, with the first version delivering support for Dell PowerFlex.

You can see the increasing customer commitment in the contract duration:

• Average Contract Duration (FY2025): 3.1 years
• Average Contract Duration (Q4 FY2025): 3.2 years

Finance: review the Q1 2026 revenue guidance range of $670 million to $680 million against the current ARR run rate by Monday.

Nutanix, Inc. (NTNX) - Canvas Business Model: Key Resources

When we look at what makes Nutanix, Inc. tick from a resource perspective, it really boils down to the intellectual property they own and the scale they've achieved in their customer base. Honestly, for a software company, the IP is the engine.

The foundation is definitely the proprietary Hyper-Converged Infrastructure (HCI) software and IP. This is the core technology that converges compute, storage, and networking into a software-defined platform, allowing customers to run workloads consistently across their data centers and public clouds. Think of the Nutanix Cloud Infrastructure (NCI) platform, which includes the AHV hypervisor and the Prism management plane, as the crown jewels here. It's all software-defined, meaning they aren't tied to specific, proprietary hardware boxes.

You need the right people to keep that engine running and innovating, so the highly skilled software engineering and AI development talent is a critical, though harder to quantify, resource. We see this investment paying off with continued innovation, like the deeper integration with NVIDIA Enterprise AI for their Nutanix Enterprise AI offering.

Here's a quick look at the key financial and scale metrics that represent the tangible resources Nutanix has built up:

That FCF number is quite something; management had guided it between $700 million and $730 million for FY2025, so hitting $750 million shows they are definitely managing the bottom line well while growing. It's a strong signal of cash conversion.

Beyond the financials, the customer base itself is a massive resource, especially in the context of displacing incumbents. You're looking at a global footprint that provides significant recurring revenue visibility and a large installed base for upsell opportunities.

The specific components that make up the software and IP strength include:

• Nutanix Cloud Infrastructure (NCI): The core software-defined compute, storage, and networking platform.
• AHV Virtualization: The built-in, lightweight hypervisor choice.
• Nutanix Prism: The single management console simplifying operations.
• Nutanix Kubernetes Platform (NKP): Recognized as a Leader in The Forrester Wave for Multicloud Container Platforms, Q3 2025.
• Flow Security Central services: Capabilities using machine learning for anomaly detection.

The sheer volume of customers is a testament to the platform's adoption, particularly as they focus on VMware displacement. For instance, in FY2025, Nutanix added over 2,700 new customers, which is their highest number in four years.

Finance: draft 13-week cash view by Friday.

Nutanix, Inc. (NTNX) - Canvas Business Model: Value Propositions

You're looking at the core reasons why enterprises are choosing Nutanix, Inc. now, especially as they navigate the shift to AI and hybrid cloud. Honestly, the value proposition centers on simplifying what has become incredibly complex in the data center and beyond.

Simplifying hybrid multicloud complexity with a single operating platform

Nutanix, Inc. is positioned as a leader in Distributed Hybrid Infrastructure, as noted in the 2025 Gartner Magic Quadrant for Distributed Hybrid Infrastructure. The Nutanix Cloud Platform (NCP) is the vehicle for this simplification, allowing you to run applications and manage data across environments, including support for Amazon Web Services (AWS), Microsoft Azure, and the public preview of Google Cloud. This unified management plane is key when you consider that over 80% of respondents in a recent Enterprise Cloud Index survey noted their current IT infrastructure needs improvement to support modern cloud native applications.

Providing a consistent cloud experience across on-prem and public clouds

The push toward cloud native is real; nearly 90% of organizations report having at least some containerized applications, and 94% agree that their organization benefits from adopting cloud native applications/containers. To address this, the Nutanix Kubernetes Platform (NKP) has seen rapid momentum, earning Nutanix a Leader position in The Forrester Wave: Multicloud Container Platforms, Q3 2025. This platform helps unify operations across hybrid multicloud environments, offering features like seamless, nondisruptive upgrades.

Enabling enterprise AI workloads with integrated NVIDIA solutions

The focus on Artificial Intelligence (AI) workloads is driving infrastructure decisions. Nutanix has deepened its integration with NVIDIA, releasing the latest version of Nutanix Enterprise AI (NAI) featuring enhanced integration with NVIDIA AI Enterprise. This is designed to let you orchestrate AI workflows optimized for GPU infrastructure and compliant with your policies. The platform supports deploying production-grade large language models (LLMs) with enhanced privacy and control by using NVIDIA's NeMo framework for guardrails.

Lowering total cost of ownership (TCO) through software-defined infrastructure

Cost optimization remains a major driver. An independent IDC study quantifying the business value of the Nutanix Cloud Platform showed customers achieved an average TCO savings of 43% compared to their previous infrastructure approach. Furthermore, that same study reported a five-year ROI of 356%. To be fair, you see this reflected in customer wins; for example, one energy technology company switched to Nutanix after seeing a 200% price increase with its incumbent provider.

Here's a quick look at the financial performance underpinning this value delivery as of late 2025:

Delivering mission-critical data services for cloud-native applications

Nutanix is extending its data services beyond traditional virtualization. They announced Cloud Native AOS to bring enterprise storage and advanced data services directly to Kubernetes environments, even without a hypervisor. This is supported by strategic alliances, such as the partnership with Pure Storage to deliver an integrated solution for mission-critical workloads, including AI. You also see this flexibility in the expansion of the NCP to support external storage arrays, with general availability expected for Dell PowerStore support in summer 2026.

The platform's focus on modern workloads is clear:

• Extending enterprise storage to Kubernetes environments.
• Enabling customers to deploy AI workloads.
• Supporting disaster recovery for virtual desktop infrastructure, where scalability is a key feature.
• Offering license portability across different machine locations.

Finance: draft 13-week cash view by Friday.

Nutanix, Inc. (NTNX) - Canvas Business Model: Customer Relationships

You're looking at how Nutanix, Inc. keeps its customers locked in and happy as they transition fully to a subscription model. The relationship focus is clearly on long-term value delivery, supported by dedicated teams and high-touch engagement for the biggest spenders.

Dedicated Customer Success and professional services teams are central to this strategy. The company has a Sales and Support organization comprising approximately 1,350 employees, representing about 29% of the total workforce of roughly 4,650 employees as of August 2025. Furthermore, the Customer Success organization actively guides customers through onboarding and adoption, using resources like the Customer Success Learning Plans (CSLP).

The financial commitment from customers reflects this focus on longevity. The long-term subscription contracts are showing increasing duration. The Average Contract Duration in the fourth quarter of fiscal year 2025 was 3.2 years. For the full fiscal year 2025, the Average Contract Duration was 3.1 years, an increase from 3.0 years in fiscal year 2024. The core of the revenue stream is subscription-based, with Subscription revenue reaching $2,410,751 thousand in fiscal year 2025 against total revenue of $2,537,927 thousand. This high percentage of subscription revenue underpins the importance of contract duration metrics.

For immediate assistance and knowledge transfer, Nutanix, Inc. supports its broad customer base through digital channels. The company reported a base of over 29,290 end customers as of July 31, 2025, marking a 10% growth in the customer base during fiscal year 2025.

• Self-service support and community via the Nutanix portal is available through resources like the Nutanix Support Portal.
• The Customer Success Learning Plans (CSLP) include courses, videos, and documentation for self-guided learning.

Engagement with the largest accounts remains a key driver for high-value deals. Nutanix, Inc. continues to focus on major accounts and large deals as a strategic investment area. While penetration figures can fluctuate, the company has historically served a significant portion of the largest US companies.

The net dollar-based retention rate was 108% as of July 31, 2025, showing that existing customers are expanding their usage, which is a direct measure of relationship success.

Nutanix, Inc. (NTNX) - Canvas Business Model: Channels

You're looking at how Nutanix, Inc. gets its software and platform solutions into the hands of customers as of late 2025. It's a multi-pronged approach, heavily leaning on partners, which is clear when you look at the financial results for the fiscal year ending July 31, 2025.

The overall business performance shows this channel strategy is working, especially as the company shifts to a subscription-first model. For instance, in the fourth quarter of fiscal year 2025, Nutanix reported GAAP revenue of $653.3 million, which was a 19.2% increase year-over-year. The full fiscal year 2025 revenue landed at $2.538 billion, marking an 18.1% increase compared to fiscal year 2024. Subscription revenue was the engine, making up about 94.4% of total Q4 revenue, with Annual Recurring Revenue (ARR) reaching $2.22 billion, up 17% year-over-year. Honestly, that kind of growth, with a GAAP Gross Margin consistently hitting 87.2% in Q4, suggests the channel mix is driving efficient scale.

Indirect sales through the global Elevate Reseller Partner Program

Nutanix has long maintained a channel-first philosophy; they've stated they've been 100% channel focused from day one. The Elevate Reseller Partner Program is the structure for this. For fiscal year 2025, the program was recognized with a 5 Star Rating in the 2025 CRN Partner Program Guide. This program is designed with tiered levels, including a Premier level that offers exclusive benefits like the Outperformance rebate for top performers. To give you a concrete example of incentive structure, a Channel-Led Rebate was structured to allow partners to earn up to 6% on deals closed within a specific period ending July 31, 2024, showing the tangible financial rewards built into the system.

The program focuses on rewarding competency and performance, with levels like Authorized and Professional requiring specific sales and technical skill sets. The success of this ecosystem is evident, as OEM and channel partners aided in strong new logo growth reported in Q1 fiscal 2025.

Direct sales force for large enterprise and strategic accounts

While the channel is broad, Nutanix still deploys a direct sales force. You use this team specifically when targeting the largest organizations or when a deal has strategic importance that requires deep, direct engagement from the vendor. The company has noted success in winning large customers and expanding its footprint in the Global 2000 segment. The pipeline for these larger deals, however, has sometimes led to uncertainty in timing, as management noted a modest elongation of average sales cycles relative to historical levels.

Cloud provider marketplaces (e.g., AWS, Google Cloud) for Cloud Clusters (NC2)

The Nutanix Cloud Clusters (NC2) offering is a key channel for hybrid cloud expansion, allowing customers to run the platform on public cloud infrastructure. In fiscal 2025, Nutanix signed new or enhanced agreements with both AWS and Google to bolster this channel. For instance, NC2 on AWS is available for software subscription via the AWS Marketplace, which simplifies procurement through the customer's existing AWS bill. For Google Cloud, the Nutanix Cloud Clusters solution entered early access in the summer of 2025. To put this in perspective, at the time of Q2 2025 reporting, AWS held a 30% market share and Google Cloud (GCP) held 13% of the worldwide cloud infrastructure services market, making these marketplaces significant routes to market.

• AWS Marketplace: Offers Nutanix Software Subscription for seamless migration to NC2 on AWS.
• Google Cloud: Nutanix Cloud Clusters entered early access in Summer 2025.

Original Equipment Manufacturer (OEM) partners for integrated hardware solutions

OEM partnerships represent a crucial, often high-volume, channel for Nutanix, especially for sales where the software is bundled with hardware. This is reflected in the financial reporting, where 'Non-portable software revenue' specifically includes sales delivered on a configured-to-order appliance by an OEM partner. The strength of this route was highlighted in Q3 fiscal 2025, where OEM partnerships contributed to a 22% year-over-year revenue gain. Key OEM relationships include those with Dell Technologies, where the Dell PowerFlex with Nutanix product saw 'decent traction' in the quarters leading up to late 2025, and agreements with Pure Storage for external storage sales. Growth through these third-party OEM partners was also cited as a factor influencing revenue timing in early fiscal Q1 2026 results.

If you're tracking this, remember that growth in OEM business can sometimes cause a 'revenue shift' in reporting, as seen when Nutanix noted increased customer demand for flexible start dates alongside growth through OEM partners in late 2025.

Nutanix, Inc. (NTNX) - Canvas Business Model: Customer Segments

You're looking at the customer base for Nutanix, Inc. as of late 2025. The company has successfully transitioned to a software-centric, subscription model, and its customer acquisition reflects this focus on hybrid multicloud platform adoption.

Nutanix, Inc. reports a broad and diverse base of over 29,000 end customers as of July 31, 2025. This base saw significant expansion in the fiscal year, adding over 2,700 new customers globally in FY25, which was the highest number of new customer additions in approximately four years. By the first quarter of fiscal 2026 (ended October 31, 2025), the total customer count had grown to 29,930. The stickiness of this customer base is evident, with 77% of end customers making repeat purchases, contributing to a net dollar-based retention rate of 108% as of July 31, 2025.

The overall market penetration across geographies for the full fiscal year 2025, which totaled $2.538 billion in revenue, shows where the bulk of the customer activity is concentrated:

This revenue distribution gives you a sense of the scale within the enterprise and mid-market segments that drive the majority of the business.

The customer base is segmented by the type of infrastructure modernization and compliance needs they address:

• Large enterprises and Fortune 500 companies seeking hybrid cloud solutions.
• Mid-market organizations focused on IT infrastructure modernization.
• Customers in highly regulated industries (e.g., financial services, government).
• Cloud Service Providers (CSPs) and Managed Service Providers (MSPs).

Customers in highly regulated industries form a core part of the Nutanix Cloud Platform (NCP) user base. The platform is deployed across sectors requiring stringent operational standards, including financial services, healthcare, the public sector, manufacturing, and retail. For instance, First Foundation Bank in California uses NCP to manage disaster recovery for its virtual desktop infrastructure, valuing the platform's scalability and license portability. The focus on data sovereignty and resilience, especially with the rise of AI workloads, drives adoption in these compliance-heavy environments.

For the mid-market and large enterprise segments, the driver is often the need to optimize Total Cost of Ownership (TCO) and manage the complexity of hybrid and multicloud environments, especially with the acceleration of GenAI workloads. The platform's ability to support containerization, with nearly 90% of organizations reporting at least some containerized applications, appeals to organizations modernizing their application development stacks.

While specific revenue attribution to CSPs and MSPs isn't itemized, the strategy involves extending the platform to support external storage from qualified partners and public clouds like AWS, Microsoft Azure, and Google Cloud. This partner ecosystem is crucial, as evidenced by the company signing new or enhanced agreements with partners like AWS, Pure Storage, and NVIDIA in fiscal 2025.

The focus on new logo additions, which grew more than 50% year-over-year in Q1 FY2025, suggests strong penetration across all target segments, often aided by industry consolidation events. Finance: draft a breakdown of the 2,700 new FY25 customers by estimated enterprise vs. mid-market size by next Tuesday.

Nutanix, Inc. (NTNX) - Canvas Business Model: Cost Structure

When you look at the Cost Structure for Nutanix, Inc. (NTNX), you see a company heavily weighted toward fueling future growth through its software platform. The most concrete figure you have for a recent period is the Non-GAAP operating expenses of $457.2 million in Q4 FY2025. That's the number that excludes things like stock-based compensation, which helps you see the core cash burn for operations in that quarter.

The investment in innovation is substantial. For the full fiscal year 2025, Research and Development (R&D) expenses totaled $0.737B. This is a clear indicator of the commitment to platform innovation, especially as they push their hybrid multicloud and AI-ready capabilities. To put that in perspective against the prior year, R&D was $0.639B in FY2024, showing a year-over-year increase of about 15.31% for the full fiscal year.

Driving that subscription growth requires significant muscle in the field. The largest single operating expense Nutanix carries is for Sales and Marketing (S&M) costs. For the trailing twelve months (TTM) ending July 31, 2025, S&M amounted to US$1.06b. Honestly, that figure represents about 52% of their total expenses for that TTM period. That's where a huge chunk of your cash goes-hiring engineers, sales reps, and support staff to land those new logos, which they added over 2,700 of in FY2025.

Personnel costs are the engine behind both R&D and S&M. While specific total personnel costs aren't broken out separately from the operating expense line, you can see the scale in executive compensation alone. For instance, President and CEO Rajiv Ramaswami's base salary for FY2025 was set at $800,000, and CFO Rukmini Sivaraman's was $520,000. These fixed costs are baked into the larger operating expense buckets. Infrastructure costs for cloud service consumption and internal operations are certainly present, but they are embedded within the GAAP and Non-GAAP operating expense reporting, not itemized separately in the high-level summaries available.

Here's a quick look at how the main operating expense categories stacked up in the fourth quarter:

The focus on subscription revenue means the cost structure is geared toward acquiring and supporting long-term contracts. You should watch these key cost drivers:

• R&D Investment: Annual spend hit $0.737B in FY2025.
• Sales & Marketing Spend: The largest component, reaching $1.06b TTM.
• Operating Leverage: Non-GAAP Operating Margin improved to 18.3% in Q4 FY2025 from 12.9% in Q4 FY2024.
• Personnel Base: Engineering, sales, and support staff are the primary drivers of the high operating expense base.

If onboarding takes 14+ days, churn risk rises, which directly impacts the return on that heavy S&M spend.

Finance: draft 13-week cash view by Friday.

Nutanix, Inc. (NTNX) - Canvas Business Model: Revenue Streams

The revenue generation for Nutanix, Inc. centers heavily on its software-centric, subscription-based model. This shift is the core of the current financial structure.

Subscription software licensing revenue is the primary source, reflecting the company's transition away from perpetual licenses and hardware sales. This stream includes revenue from software entitlement subscriptions, support subscriptions, and cloud-based software-as-a-service, or SaaS, offerings. Revenue from software entitlement subscriptions is generally recognized upfront upon transfer of control to the customer, while support and SaaS offerings are recognized ratably over the contractual service period.

The scale of this recurring base is captured by the Annual Recurring Revenue (ARR) of $2.22 billion as of Q4 FY2025. This metric tracks the annualized value of all active subscription contracts. Also, the Total GAAP Revenue for FY2025 was $2.538 billion, derived from the reported figure of $2,537,927 thousand. This full-year revenue figure demonstrates the overall scale of the business for the period ending July 31, 2025.

To give you a clearer picture of the revenue mix, here is a look at the components from the fourth quarter of fiscal year 2025, which illustrates the current weighting of these streams:

Professional services and training fees form a smaller, supporting revenue stream. This revenue is recognized as the services are performed. For instance, in the fourth quarter of fiscal 2025, this component brought in $28,001 thousand.

The remaining revenue comes from non-portable software and minimal hardware revenue. This category is intentionally minimized as Nutanix focuses on its software-defined, subscription-first strategy. In Q4 FY2025, this 'Other non-subscription product revenue' amounted to $1,319 thousand. The company is actively enabling customers to use existing external storage hardware through new partnerships, which further shifts the revenue mix away from direct hardware sales.

You can see the subscription focus clearly when comparing the key metrics:

• Annual Recurring Revenue (ARR) as of Q4 FY2025: $2.22 billion.
• Total GAAP Revenue for FY2025: $2.538 billion.
• Net Dollar Retention Rate (NDR) at the end of Q4 FY2025 was 108%.
• Average Contract Duration at the end of Q4 FY2025 was 3.2 years.

Finance: confirm the FY2026 revenue guidance breakdown by subscription vs. services by next Tuesday.