Behind the earnings posted by Nutanix Inc. on Tuesday was a clear indication that its transition from a traditional software licensing model to one more focused on subscription business was gaining traction. Subscription revenue now accounts for more than a third of Nutanix’s sales and climbed above 100 percent year-over-year in the same period.

Analysts believe the most recent results represent a signal that customers are responding to the vision outlined by a number of Nutanix executives at the company’s major gathering this week in London.

“Even though customers are only using core products, it does help that Nutanix is laying down this vision of next steps,” said Joep Piscaer (@jpiscaer), guest host of theCUBE, SiliconANGLE Media’s mobile livestreaming studio, during the second day of the .NEXT Conference. “Customers are struggling to go from their current on-premises three-tier virtualization layer up to an application focus in the cloud. It helps to guide customers to where Nutanix wants the customers to go.”

Piscaer was joined by Stu Miniman (@stu), co-host of theCUBE, and they discussed Nutanix’s role in delivering hyperscale to the enterprise and the impact of recent news from Amazon to migrate its cloud technology to the data center. (* Disclosure below.)

A packaged hyperscale solution

One of the factors fueling Nutanix’s growth has been its success in offering a hyperconverged infrastructure solution that integrates storage, virtualization and compute into an easy-to-deploy package. Enterprises without large research and development budgets don’t have to build this solution from scratch.

“When I look back to the early days of Nutanix, their mission was they took hyperscale, what the really big guys were doing, and they were going to bring that to the enterprise,” Miniman said. “They’ve done a great job of packaging that. They’ve met the customers where they are.”

Concurrent with the Nutanix conference in London, Amazon Web Services Inc. has been holding its own event this week in Las Vegas. The public cloud provider announced an on-premises data center model on Wednesday called Outposts, which mirrored its own cloud operation.

Amazon’s bold move into the enterprise data center has left analysts to speculate on its impact for the industry, particularly since Nutanix has built its own set of tools, such as a Kubernetes distribution called Karbon, to facilitate simpler cluster management.

“If you compare Outposts to the work that Nutanix is now doing with Karbon, technologically it isn’t all that different,” Piscaer said. “But it’s a matter of perspective for which customers are being helped in which way.”

Watch the complete video interview below, and be sure to check out more of SiliconANGLE’s and theCUBE’s coverage of the .NEXT Conference. (* Disclosure: TheCUBE is a paid media partner for the .NEXT Conference. Neither Nutanix Inc., the event sponsor, nor other sponsors have editorial control over content on theCUBE or SiliconANGLE.)

Photo: Nutanix .NEXT