HPE-Nutanix Global Partnership: FAQ

Confidential: for use with authorized Nutanix Partners only

August 1, 2019

I. UNDERSTANDING THE HPE + NUTANIX PARTNERSHIP

What did we announce?

On April 9, 2019, HPE and Nutanix announced a global partnership to deliver Nutanix Enterprise
Cloud software running on HPE server technology. The two companies will offer two
complementary solutions:

1. Nutanix will introduce a new DX appliance family built on HPE ProLiant and HPE Apollo
servers with pre-installed Nutanix Enterprise Cloud software, and shipped from HPE
factories.
2. HPE will sell Nutanix’s Enterprise Cloud software as a managed service through their
existing GreenLake program, leveraging a pay-as-you-go licensing model

Why is Nutanix partnering with HPE?

This partnership is a continuation of Nutanix’s long-standing strategy of providing its customers
with maximum choice, including the ability to select the optimal server platform for their Nutanix
software environment.

The new offerings - integrated DX appliances and HPE GreenLake with Nutanix - will appeal to
customers who want Nutanix software and have a preference for HPE server technology. With the
ability to now offer Nutanix software on HPE hardware, Nutanix sales teams and channel partners
will realize expanded sales opportunities.

What does this partnership mean for other Nutanix relationships, including Dell EMC and
Lenovo?
There is no change to any Nutanix partner relationships. These new HPE + Nutanix offerings
simply bring greater choice of consumption models and hardware platforms to Nutanix
customers. Nutanix customers can still select the best platform for their deployment, including
Supermicro-based Nutanix NX appliances, turnkey HCI appliances from OEM partners (Dell EMC,
Lenovo, IBM, Fujitsu, and others), and software for deployment on customer-procured servers
from Cisco, NEC and others.

Will HPE continue to sell their Simplivity HCI solution?

Yes. There is no change to HPE’s Simplivity sales strategy. For customers who insist upon HPE
server technology, the DX appliance provides an attractive alternative to HPE Simplivity software.

What is the field engagement model for the two companies?

As shown below, the customer’s preferred consumption model will determine the best Nutanix +
HPE solution, and the proper field engagement strategy. Customers who require a pay-as-you-go
consumption model will be directed to HPE GreenLake. All other opportunities will be managed by
Nutanix to determine the best DX appliance.

Does HPE GreenLake compete with Xi Cloud Services?

No. HPE GreenLake consists of Nutanix software deployed on HPE ProLiant DX appliances in a
customer datacenter or co-location facility, delivered as a managed service. In contrast, Nutanix Xi
Cloud Services are delivered via third-party public clouds (AWS, Azure and Google Cloud
Platform) and Xi Cloud datacenters.

II. DX APPLIANCE OVERVIEW

This new family of HPE ProLiant DX appliances is built with HPE ProLiant and HPE Apollo servers,
and powered by pre-installed Nutanix Enterprise Cloud OS software. These new DX appliances
will be made available for all use cases and all applications.

Appliance Summary

HPE Based on HPE ProLiant and HPE Apollo servers, specifications

Hardware available at www.nutanix.com/specsheet

Nutanix Available only with Nutanix AOS term-based capacity-based licenses

Software (CBL). Life-of-device software licenses will not be quotable.
 Quoting Nutanix sales teams and authorized channel partners will be able to
quote DX appliances. (Resellers, however, must be partners of both
Nutanix and HPE) Quotes will include Nutanix software and support,
as well as HPE hardware and hardware support services.

Key Dates ● Nutanix Sizer support: Now available

(planned) ● Quotable by Nutanix sales and select Distributors: Aug 12, 2019
● Quotable by Nutanix sales and all Distributors: Sept 16, 2019
● Orders can start shipping from HPE factories: Aug 16, 2019

Manufacturing HPE will ship DX appliances with factory-installed Nutanix software

and Delivery direct to the end customer

Product ● Simplified and error-free hardware ordering (compared to prior

Experience “meet-in-the-channel” model). Only qualified components are
orderable.
● Deployments are simplified with AOS + Prism + AHV software pre-
installed at the HPE factory
● LCM support for AOS software, hypervisor and appliance firmware

Config to Order DX appliances will provide CTO options for modular components, such
(CTO) as CPU, memory, SSD, HDD, NIC, etc. With a wide range of base DX
appliances and configurable options, there are hundreds of thousands
of different configuration combinations.

Support Customer will engage Nutanix support directly for software issues,
Model and contact HPE support directly for hardware issues including
firmware and BIOS

How will these new DX appliances be quoted and sold?

Nutanix sales teams and channel partners will sell DX appliances in a nearly identical fashion as
current Nutanix NX appliances, with the exception that HPE will provide hardware support for the
DX appliance hardware. Nutanix sales team will quote both the HPE hardware and Nutanix
software. Customer will do two transactions - one with HPE and one with Nutanix - but will get a
fully-integrated, turnkey appliance solution based on HPE server hardware, with Nutanix software
pre-installed from HPE factory.

All quoting for DX appliances will be initiated from Nutanix tools (same as with NX)– and these DX
appliance quotes will include both the software and hardware portions of the configuration.
Unlike Nutanix NX, however, DX appliance quotes will not breakout the hardware and hardware
support pricing separately. Instead, DX appliance hardware SKUs include both the hardware
purchase and hardware support, which is for either 3 or 5 years.

Will I need 2 PO’s from my customer for each DX opportunity (for HW and SW)?
You can either raise 1 PO with your Distributor containing both the hardware and software, or
raise 2 separate POs to the Distributor. It comes down to your preference on how you want to
order/track your opportunities.

What Nutanix software licensing will be available with DX appliances?

DX appliances will support term-based capacity-based licensing (CBL) exclusively. Life-of-device
licensing, where the software entitlement is tied to the physical appliance, is not supported with
Nutanix DX. Nutanix AOS/AHV software will be pre-installed and shipped directly from HPE
factories.

What will be the specifications for new DX appliances?

DX appliances are planned to support equivalent form factors and capabilities as current Nutanix
NX appliances. Detailed specifications will be available at www.nutanix.com/specsheet.

Will DX appliances be available globally?

DX appliances will be available for purchase globally via Nutanix distributors who are also HPE
distributors. This currently provides coverage across most major regions/countries, and the
teams are working to ensure far-reaching coverage by time of GA. DX appliances will ship from
HPE factory locations around the globe.

How will Nutanix DX appliance pricing compare to NX appliance pricing?

DX appliance pricing is expected to be comparable to NX appliances with equivalent performance
and capacity.

How will Nutanix position new DX appliances v. existing NX appliances?

Nutanix will leverage its full appliance portfolio to meet the specific needs of each customer.
Nutanix sales teams will recommend DX appliances to customers who have a strong brand
preference for HPE server platforms.

How will DX appliances be branded? What company names will be on the bezel?
The primary brand (name) on the DX appliance bezel will be HPE, indicating that the appliance
hardware is manufactured and supported by HPE. This branding strategy will help Nutanix sales
teams succeed in accounts that insist upon HPE-branded servers in their environment.

Who will provide support for Nutanix DX appliances?

Nutanix, of course, will provide maintenance and support for all Nutanix software. HPE will
provide support services for DX hardware and firmware, as well as parts replacement. To make it
as easy as possible for customers to purchase DX appliances, Nutanix sales team will quote all DX
appliance support services, including Nutanix software and HPE hardware.

What happens to existing Nutanix NX appliances?

There is no change to the NX appliance family. Nutanix has shipped thousands of nodes based on
Supermicro servers, and will continue investment in this wildly successful product. The new DX
appliances simply expand customer choice of hardware platforms for running Nutanix Enterprise
Cloud software.
Will Nutanix continue to support its software on customer-purchased HPE servers?
Yes. Nutanix will continue to support validated HPE ProLiant DL and Apollo server models listed
on its hardware and firmware compatibility list (HFCL) to meet existing customer demand. There
is no change to this ‘software only’ option, however for customer deployment and lifecycle
management simplicity, the new ProLiant DX appliance is the preferred HPE solution offering. See:
https://portal.nutanix.com/#/page/docs/details?targetId=HPE-Hardware-Firmware-
Compatibility:HPE-Hardware-Firmware-Compatibility

Can DX appliances be added to a cluster built with HPE ProLiant DL or Apollo servers?
Mixing of DX appliances with HPE DL/Apollo servers in the same cluster is not supported. Nutanix
and HPE are jointly investigating the feasibility of mixing DX appliances with HPE servers in the
same cluster for general use. If an existing HPE + Nutanix customer needs this support, please
reach out to hpe@nutanix.com.

Will customers be able to add DX appliances to their Nutanix NX clusters?

Systems from different vendors cannot be mixed in the same cluster today. But, independent
clusters from different vendors can co-exist and interoperate -- managed together with Prism
Central.

Where can I get more information on DX appliance models and specifications?

Details will be available at www.nutanix.com/specsheet when the appliances become orderable.

III. DX APPLIANCE SALES & CHANNEL INFORMATION

Which Distribution partners can I work with to quote DX?

The current DX quoting and ordering process requires a Reseller partner to work through a single
common Distributor of both HPE and Nutanix. A list of mapped common Distribution partners by
country will be published on the Nutanix Partner Portal at time of Quotability.

What if there is no common Distributor in a country?

HPE and NTNX will evaluate case-by-case for any requested solution in an area where there is no
common distributor. Most of the major areas of the globe are fully mapped with at least 1
common distribution partner. Please escalate any requests through your Nutanix sales/channel
account manager.

How will Nutanix sales teams be compensated on sales of DX appliances?

Nutanix sales teams will be compensated on the software portion of the DX appliances.

Will HPE teams be able to sell the new DX appliances?

While the two companies have partnered to deliver integrated solutions, only Nutanix sales and
channel teams will be able to quote and sell DX appliances, including software and hardware.

Will HPE sales teams be compensated on sales of DX appliances?

Yes. HPE server specialists, account managers, and partner business managers will be
compensated on the hardware and hardware support portion of DX appliance sales, per HPE’s
applicable comp plan for ProLiant and Apollo servers. Importantly, this dual comp structure (HPE
for hardware and hardware support, and Nutanix for software and software support) will help
align HPE sales resources to support Nutanix go-to-market efforts with DX appliances.

Will Nutanix channel partners be compensated on sales of DX appliances?

Yes. Authorized partners will be compensated by Nutanix for the software portion, and by HPE for
the hardware portion, of a DX appliance opportunity. So, for example - an organization who is an
authorized HPE and Nutanix partner can earn and claim rebates from both HPE and Nutanix based
on each vendor’s channel incentives (depending on each vendor program’s eligibility
requirements).

Will HPE partners automatically be enrolled in Nutanix partner network?

No. HPE partners may opt to join the Nutanix Reseller Partner Program, but must first meet the
program requirements – which have not changed.

What should channel partners do with immediate term DX customer opportunities?

Start by registering in the Nutanix Deal Registration Portal so that you can gain access to Nutanix
resources to support your deal. Also, log-in to the Nutanix Partner Portal to access additional
partner-facing enablement resources and customer-facing campaign content.

To whom do I escalate HPE partnership questions and issues?

Email us at HPE@nutanix.com. Authorized Nutanix partners’ first point of contact for selling is
your local Nutanix Channel Sales team

IV. UNDERSTANDING HPE GREENLAKE

HPE will add a new GreenLake offering to deliver Nutanix Enterprise Cloud software as a service,
with pay-as-you-go pricing. The service will consist of Nutanix software running on HPE servers,
installed in a customer datacenter or customer co-location facility. HPE will provide a range of
services for the integrated solution, including installation, configuration, software upgrades,
capacity additions and more.

Customers pay for GreenLake services monthly, over a committed term length - typically three
years or more. Pricing is based on an agreed-upon level of committed capacity, plus the actual
capacity used beyond the committed level.

Who will sell GreenLake Nutanix services?

GreenLake is sold exclusively by HPE sales teams and channel partners. Nutanix will not sell or
market GreenLake offerings. Nutanix sales teams will, however, be compensated for Nutanix
software licenses used to deliver GreenLake private cloud services. Sales compensation details
will be released prior to service availability.
Will HPE have to register GreenLake Nutanix deals?
Yes. HPE teams will have to register every GreenLake Nutanix deal via Nutanix’s standard deal
registration process. This brings full visibility of HPE-discovered opportunities, as well as strong
price protection for Nutanix sales teams and channel partners. Deal registration also allows HPE
teams to request assistance from Nutanix sales teams, and begin joint selling.

How will GreenLake offerings be positioned relative to DX appliances?

HPE and Nutanix sales team will recommend GreenLake when a customer expresses preference
for consuming Nutanix software as a service in their datacenter or co-location facility. For all other
Nutanix software opportunities, Nutanix sales teams will present the full range of consumption
options, including integrated appliances (NX, DX and OEM), software-only deployments and Xi
Cloud services.

What Nutanix software capabilities will be available via HPE GreenLake?

Initially, HPE will offer Nutanix AOS, AHV and Prism as services, with the option to add Prism Pro,
Calm and Flow. More information on specific GreenLake services featuring Nutanix software will
be made available prior to availability.

How is HPE GreenLake priced?

As a managed service offering, HPE GreenLake pricing is based on several factors: 1) type of
GreenLake service, 2) the specific HPE-delivered managed services selected, the amount of
committed capacity installed, 3) the term length of the GreenLake agreement, and 4) the amount
of capacity used beyond the committed amount.

Detailed pricing for GreenLake Nutanix offerings will be made available closer to service
availability.

Will HPE sales and partner teams be trained to sell Nutanix software?
HPE teams will have access to Nutanix sales training materials, and will be supported by Nutanix
sales teams and OEM sales teams so that HPE can effectively position the capabilities of Nutanix
Enterprise Cloud solutions when delivered via GreenLake.

With GreenLake, will HPE be able to undercut Nutanix on price?

Because the two companies will offer very different solutions (1. HPE selling a GreenLake pay-as-
you-go service, and 2. Nutanix leading with an integrated appliance), there should not be direct
sales conflict, nor head-to-head price competition. Additionally, for GreenLake opportunities that
include Nutanix software, HPE teams will have to register the deal via Nutanix’s standard deal
registration process. This brings full visibility of HPE-discovered opportunities, as well as strong
price protection for Nutanix sales teams and channel partners. (See below sections for more
information)

How will GreenLake pricing compare to Nutanix software and appliance pricing?
GreenLake pricing for Nutanix software will be equivalent to the purchase of Nutanix capacity-
based licenses, when converted from a capex purchase to monthly service payments - factoring in
finance costs, term length, HPE services, possible early termination penalties, etc. In other words,
customers will not be able to exploit either consumption model to achieve lower Nutanix software
costs. With GreenLake, customers simply get another price-equivalent option for consuming
Nutanix software.

Can Nutanix sales teams work a deal that has been registered by HPE?
For Nutanix-approved HPE GreenLake deal registrations, Nutanix sales teams should support HPE
sales efforts to sell Nutanix as-a-service. HPE GreenLake deal registration only applies to when
Nutanix software is delivered as a service. If during the sales process, it is determined that the
customer actually prefers another consumption model (e.g., Nutanix appliance purchase or Xi
Cloud service offering), then Nutanix sales teams are free to offer and sell a non-GreenLake
Nutanix offering.

Will Nutanix-only channel partners be compensated for GreenLake Nutanix deals?

It is unlikely that a Nutanix-only channel partner will play a pivotal role in a GreenLake sales
opportunity, as they cannot quote, sell or support the service. Therefore, Nutanix-only channel
partners will not typically be paid on GreenLake Nutanix deals. However, a Nutanix partner who
is also a HPE partner will be able to transact GreenLake.

Who provides support for Nutanix software delivered via GreenLake?

As a managed service, HPE will have primary responsibility for maintaining the Nutanix
environment, including hardware resources, Nutanix software updates and more. GreenLake
customers will leverage HPE support teams as the first point of contact for Nutanix software
issues. HPE will then partner with Nutanix support teams to resolve customer issues.

Will Nutanix receive end customer information for GreenLake Nutanix service
deployments?
Yes. The GreenLake customer must agree to the terms of Nutanix’s end-user license agreement
(EULA). As part of this process, Nutanix will capture relevant customer information.