Radi Sultan

Radi Sultan asked about the magnitude of the VMware replacement opportunity compared to 12 months ago, considering Broadcom's changes, and the biggest drivers of that change. Radi also inquired about the confidence in the implied Q4 upsell given supply chain constraints, seeking visibility and leading indicators.

Answer

Rajiv Ramaswami, Nutanix's CEO, stated that the VMware replacement opportunity hasn't changed, citing healthy new customer additions, an all-time high AHV percentage, and extended partnerships with cloud providers like AWS. Rukmini Sivaraman, Nutanix's CFO, expressed confidence in Q4 due to its traditional strength as a fiscal year-end quarter and current supply visibility, also pointing to RPO growth of 24% as an indicator.

Radi Sultan asked about the current magnitude of the VMware replacement opportunity compared to 12 months ago, the drivers of any changes, and Nutanix's confidence and visibility in the implied Q4 upsell given supply chain constraints.

Answer

CEO Rajiv Ramaswami stated that the VMware opportunity remains a multi-year journey, with no significant change in magnitude, evidenced by strong new customer additions and high AHV adoption. CFO Rukmini Sivaraman expressed confidence in Q4 upsell due to traditional seasonality, current supply visibility, and strong RPO/CRPO growth.

Radi Sultan with UBS inquired about DigitalOcean's longer-term capacity add framework, specifically what factors inform decisions on procurement and what gives confidence in filling capacity over the next several years. He also asked if the 2027 EBITDA and free cash flow guidance contemplates any additional capacity investments beyond the 31 MW planned for 2026.

Answer

CEO Paddy Srinivasan explained that capacity planning is driven by customer demand projections, the need for geographic spread with colocated core cloud and AI capacity, and keeping pace with generational leaps from GPU OEMs. He emphasized that customer needs and workload ramps are primary drivers. CFO Matt Steinfort clarified that the 2027 EBITDA and free cash flow guidance is solely reflective of the 31 MW capacity being brought online in 2026, not any additional future investments.

Radi Sultan asked about DigitalOcean's longer-term capacity add framework, specifically what factors inform decisions on how much capacity to procure over several years and what gives confidence in filling that capacity. He also inquired if the 2027 EBITDA margin and free cash flow guidance contemplates any additional capacity investments beyond the 31 megawatts brought online this year.

Answer

CEO Paddy Srinivasan explained that capacity planning is primarily driven by customer demand and projected needs, geographic spread for co-locating core cloud and AI capacity, and keeping pace with generational leaps from OEMs like AMD and NVIDIA. CFO Matt Steinfort clarified that the 2027 EBITDA margin and free cash flow guidance only reflects the 31 megawatts committed for 2026, not any additional capacity investments beyond that.

Radi Sultan asked if the increasing frequency of security incidents, such as npm attacks, indicates a permanent higher threat environment, making them structural growth drivers for JFrog's security solutions.

Answer

JFrog CEO Shlomi Ben Haim affirmed that software supply chain attacks are growing, targeting software packages and binaries, a trend exacerbated by AI code agents. He stated that this growing threat and trend are anticipated to continue, reinforcing the need for JFrog's Security Suite.

Radi Sultan inquired whether the increasing frequency of software supply chain security incidents, such as npm attacks, represents a structural growth driver for JFrog's security solutions, suggesting a permanently higher threat environment.

Answer

JFrog CEO Shlomi Ben Haim confirmed that attacks on the software supply chain, targeting software packages and binaries, are increasing. He cited Log4j, Python, MCP, and npm incidents as examples. He also noted that AI code agents generate more binaries, increasing the need for trusted infrastructure. Shlomi anticipates this threat and trend will only grow, reinforcing the need for JFrog's Security Suite.

Radi Sultan inquired about the primary catalysts for migrations to Teradata Vantage in the second half of the year and what portion of these migrations are driven by GenAI use cases. He also asked new CFO John Ederer what gave him confidence in the company's financial guidance and linearity.

Answer

President and CEO Steve McMillan identified two key market shifts: a significant pipeline of AI-influenced growth for both on-prem and cloud, and a reduction in 'pure play' cloud migrations as customers focus more on flexibility and value. CFO John Ederer stated his confidence in the guidance comes from strong first-half execution, significant improvements in customer retention (erosion), and growing interest in new AI-related products.