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Nortel Nortel Communication Server 1000

Nortel Builds on its Unified Communications vision, solutions Portfolio | killexams.com true Questions and Pass4sure dumps

Nortel

NYSE : NTTSX : NT

Nortel

March 05, 2007 09:02 ET

CEO Mike Zafirovski Outlines Nortel UC vision at VoiceCon 2007

ORLANDO, FLORIDA--(CCNMatthews - March 5, 2007) - At VoiceCon Spring 2007 this week, Nortel(1) (TSX:NT)(NYSE:NT) is outlining its vision for unified communications (UC) and unveiling fresh solutions designed to supply firms with simple and legitimate methods to carry voice, video and information over IP and permit superior unified communications.

Nortel President and CEO Mike Zafirovski can exist a keynote speaker on Tuesday, and may focus on how unified communications solutions and converged applications are poised to radically change traffic communications.

"Unified communications fundamentally alterations the style firms speak, simplifying the deluge of communications with a single, seamless interface," talked about Zafirovski. "Nortel and their companions are working to create a UC event that makes worker's more productive and responsive, with a wealthy communications adventure in the office or on the go."

Nortel's unified communications vision makes a speciality of featuring solutions that align to the traffic environment the commercial enterprise makes utilize of today. These options enable users to adventure streamlined communications inside their traffic software while leveraging their current IT investments - in reality UC your manner.

As Part of its expanding unified communications portfolio, Nortel is introducing a few fresh solutions that bring a richer set of UC outfit whereas making inescapable the resiliency of the communications network.

Nortel's cornerstone IP Telephony answer, the communique Server (CS) 1000 will convey fresh capabilities and enhancements to extra beef up this main VoIP platform. a brand fresh unlock of CS 1000 will supply stronger reliability and redundancy, better community and voice summon protection and fresh E911 capabilities, consummate geared toward guaranteeing agencies can depend on their community for faultfinding communications wants. via deliberate interoperability with Microsoft workplace Communications Server 2007, this fresh liberate will convey unified communications capabilities as Part of the creative Communications Alliance roadmap.

the brand fresh CS one thousand structure will prolong its sheperd for open necessities, with aid for an open working gadget and delivery on industrial off-the-shelf (COTS) hardware from IBM and other suppliers, to increase deployment flexibility and manageability of the community. gigantic simplification of the portfolio facets and pricing bundles will fabricate it less difficult for companions and resellers to cite and promote. This fresh free up is deliberate for availability in 2Q07.

moreover today Nortel announced the conventional availability of a brand fresh free up of the award-successful Multimedia verbal exchange Server (MCS) 5100. This fresh liberate improves productivity by using featuring clients with tense integration of telephony and multimedia purposes within IBM Lotus Notes. It likewise facets a number of tremendous enhancements, including superior and simplified collaboration capabilities that enable a complete latitude of voice, video, conferencing, email, IM and presence capabilities on the click of a mouse, along with stronger mobility capabilities that deliver a prosperous communications event for cellular people. the fresh MCS 5100 free up additionally introduces sheperd for brand spanking fresh SIP-based mostly IP phones enhancing usability and suppleness and improves the medium protection, reliability, manageability and scalability of the core platform, which now operates on IBM servers with a Linux working gadget.

Nortel is additionally introducing Unified Messaging (UM) 2000, a function-rich, carrier-grade reply aiding up to one million users that permits voicemail, fax and email to exist accessed together via ordinary e mail purposes and integrates with Microsoft's energetic directory®. UM 2000 is specifications-based mostly in order that it could actually office in a multivendor voice network, and is targeted to global enterprises in addition to carriers that present their customers unified messaging solutions.

To befriend organisations installation UC-optimized networks, Nortel is likewise unveiling converged data networking enhancements to its North American advertising campaigns, which build on the successful IPT 1-2-three push launched remaining yr. These crusade enhancements consist of companion tools, concentrated claim technology actions, pre-engineered statistics packages, and not obligatory capabilities that fabricate it easier and greater low-cost for authorized channel companions to install a LAN that helps valued clientele' VoIP and UC wants.

These facts programs and capabilities can likewise exist quoted starting in April 2007 and encompass alternate options to allow the complete deployment of vigour over Ethernet, VoIP-Optimized cozy Routing for WAN access, and WLAN for mobility and not obligatory preservation, setting up and technical sheperd features. Nortel's North American push additionally comprises advertising and incentive courses available today via licensed Nortel channel partners for agencies who are customizing their community for unified communications.

About Nortel

Nortel is a recognized chief in offering communications capabilities that fabricate the pledge of company Made elementary a verity for their consumers. Their subsequent-era applied sciences, for each service provider and commercial enterprise networks, sheperd multimedia and business-vital applications. Nortel's technologies are designed to aid snare rid of modern day obstacles to efficiency, velocity and efficiency by using simplifying networks and connecting americans to the recommendation they need, once they want it. Nortel does company in additional than one hundred fifty nations around the world. For extra counsel, talk over with Nortel on the net at www.nortel.com. For the latest Nortel information, seek recommendation from www.nortel.com/news.

certain statements during this press release may additionally contain phrases comparable to "may", "expects", "may additionally", "anticipates", "believes", "intends", "estimates", "pursuits", "envisions", "seeks" and other equivalent language and are regarded forward-looking statements or tips under applicable securities law. These statements are in response to Nortel's current expectations, estimates, forecasts and projections in regards to the operating atmosphere, economies and markets by which Nortel operates. These statements are territory to essential assumptions, dangers and uncertainties, which can exist intricate to foretell and the actual outcomes can exist materially distinctive. further, precise effects or movements might fluctuate materially from these reflected in forward-looking statements as a result of the following(i) dangers and uncertainties relating to Nortel's restatements and connected matters together with: Nortel's most recent restatement and two previous restatements of its monetary statements and connected events; the impecunious impact on Nortel and NNL of their most recent restatement and prolong in submitting their monetary statements and connected fitful studies; prison judgments, fines, penalties or settlements, or any mammoth regulatory fines or different penalties or sanctions, concerning the continuing regulatory and criminal investigations of Nortel in the U.S. and Canada; any colossal pending civil litigation movements not encompassed via Nortel's proposed class action settlement; any substantial money fee and/or gigantic dilution of Nortel's existing fairness positions as a result of the approval of its proposed category motion settlement; any unsuccessful remediation of Nortel's material weaknesses in inner control over monetary reporting resulting in an inability to document Nortel's consequences of operations and monetary condition precisely and in a timely method; the time required to allocate into upshot Nortel's remedial measures; Nortel's requisite of skill to access, in its existing form, its shelf registration filed with the U.S. Securities and change commission (SEC), and Nortel's below investment grade credit rating and any extra adverse impact on its credit standing as a result of Nortel's restatements of its fiscal statements; any opposed affect on Nortel's company and market cost of its publicly traded securities coming up from carrying on with putrid publicity regarding Nortel's restatements; Nortel's edge requisite of skill to attract or retain the personnel necessary to achieve its company ambitions; any transgression with the aid of Nortel of the persevered record necessities of the NYSE or TSX inflicting the NYSE and/or the TSX to start suspension or delisting tactics;(ii) dangers and uncertainties relating to Nortel's enterprise together with: every year and quarterly fluctuations of Nortel's operating outcomes; decreased claim and pricing pressures for its items because of global economic conditions, tremendous competitors, competitive pricing observe, cautious capital spending by customers, extended trade consolidation, abruptly altering applied sciences, evolving traffic necessities, customary fresh product introductions and short product lifestyles cycles, and other traits and traffic features affecting the telecommunications trade; the sufficiency of these days introduced restructuring movements, together with the abilities for bigger exact fees to exist incurred in reference to these restructuring actions in comparison to the estimated costs of such actions and the skill to obtain the focused can suffuse discount rates and savings of Nortel's unfunded pension liability deficit; any fabric and hostile influences on Nortel's performance if its expectations concerning market claim for particular items prove to exist incorrect or on account of inescapable limitations in its efforts to extend internationally; any discount in Nortel's working results and any related volatility out there cost of its publicly traded securities coming up from any decline in its extreme margin, or fluctuations in overseas currency exchange prices; any terrible tendencies linked to Nortel's provide shrink and shrink manufacturing agreements together with as a result of the utilize of a sole agency for key optical networking solutions accessories, and any defects or mistakes in Nortel's current or deliberate items; any negative gain an impact on to Nortel of its failure to obtain its enterprise transformation purpose; extra valuation allowances for consummate or a component of its deferred tax property; Nortel's failure to protect its highbrow property rights, or any antagonistic judgments or settlements bobbing up out of disputes concerning intellectual property; adjustments in regulation of the cyber web and/or different features of the business; Nortel's failure to efficaciously office or combine its strategic acquisitions, or failure to consummate or exist successful with its strategic alliances; any impecunious impact of Nortel's failure to conform effectively its monetary and managerial handle and reporting techniques and strategies, manage and grow its business, or create a bizarre possibility administration method; and(iii) risks and uncertainties concerning Nortel's liquidity, financing preparations and capital including: the gain an upshot on of Nortel's most fresh restatement and two outdated restatements of its monetary statements; any inability of Nortel to maneuver cash flux fluctuations to fund working capital necessities or achieve its company targets in a timely fashion or obtain extra sources of funding; elevated degrees of debt, obstacles on Nortel capitalizing on enterprise alternatives as a result of assist facility covenants, or on obtaining additional secured debt pursuant to the provisions of indentures governing determined of Nortel's public debt issues and the provisions of its aid facility; any increase of restrained money requirements for Nortel if it is unable to relaxed option aid for obligations coming up from inescapable household direction company activities, or any requisite of skill of Nortel's subsidiaries to supply it with enough funding; any terrible impact to Nortel of the deserve to fabricate greater described improvement plans contributions in the future or exposure to consumer credit score risks or inability of shoppers to fill suffuse obligations below customer financing arrangements; any impecunious impact on Nortel's means to fabricate future acquisitions, carry capital, situation debt and retain employees arising from stock expense volatility and additional declines in the market cost of Nortel's publicly traded securities, or the balance consolidation resulting in a reduce complete market capitalization or adversarial impact on the liquidity of Nortel's benchmark shares. For additional info with admire to determined of these and different elements, contemplate Nortel's Annual file on Form10-ok/A, Quarterly studies on shape 10-Q and different securities filings with the SEC. except in any other case required with the aid of pertinent securities laws, Nortel disclaims any end or duty to supersede or revise any ahead-looking statements, even if as a result of fresh counsel, future hobbies or otherwise.

(1)Nortel, the Nortel brand and the Globemark are emblems of Nortel Networks.


Microsoft software to vim Nortel Telecom Servers | killexams.com true Questions and Pass4sure dumps

it could possibly gain been probably the most longest skits ever to exist delivered from the legendary studios of Saturday nighttime are vital -- NBC Studio 8H at 30 Rockefeller Plaza -- before in reality coming to the punch line. but finally Microsoft CEO Steve Ballmer, along with the president/CEO of telecom server provider Nortel, Mike Zafirovski, introduced the subsequent angle of their collaboration, which consummate started formally in June of remaining yr.

Their mission is to integrate home windows, workplace, change, and visual Studio -- consummate four pillars of Microsoft -- into the next circular of Nortel server hardware on Intel structures. The smaller Nortel Communications Server a thousand could exist integrated with the brand fresh Unified Messaging version of change Server, for birth in the 2d quarter of this year; more excessive-conclusion fashions with multimedia conferencing capabilities on-board could exist delivered within the fourth quarter.

however what does this imply? Microsoft's demo -- best a bit of upgraded from closing 12 months -- offers their most desirable and deepest glimpse into the agencies' joint plans. in short, Microsoft plans to install yet one more fleet messaging platform: office Communicator, whose initials Microsoft and Nortel are using to symbolize the computer as a communications device in diagrams.

under the fresh scheme, a person can fabricate the most of his OC to direct a message to any individual who has an id in energetic listing. So if you've got an e mail message from someone, which you could reply the utilize of IM (the console of the OC) or the utilize of the cellphone; and in this latter case, the cellphone becomes a sort of Nortel peripheral equipment. the usage of voice instructions given to the audio "interface" of Microsoft alternate, which you could gain the cellphone system reply with a voice message, an IM message (transformed to textual content after which despatched) or with an e-mail.

in a similar way, the user's OC can exist used to redirect name-forwarding, so that any one inserting a conventional phone appellation can attain the requisite celebration on his OC, or conceivably through his exchange proxy, that could consume a message and forward it to his email. There it can exist replayed as an audio music, or conceivably translated to textual content.

It isn't a very fresh conception, but what distinguishes this selected fashion to the issue is that Microsoft's office software is so ubiquitous in enterprise nowadays that the integration of factor-of-presence in applications may well exist just tempting ample to snare groups to accept as honorable with Nortel.

As Zafirovski took the helm of Nortel remaining yr, its market participate in voice-over-IP became declining by route of a cost of 12% per yr, by route of Merrill Lynch estimates. It become a far off third in market participate in core routers at the back of Cisco and Juniper Networks, even though it changed into first in fiberoptic networking switches and gateways. still, Zafirovski - employed away from Motorola - described the start of his mission as the equal of standing at floor zero.

His method, as anticipated, turned into transformational: He wants to snare Nortel out of markets where it does not compete, via introducing communications servers this 12 months in an endeavor to integrate functionality from typical department exchanges - the residence the enterprise's market participate is lagging - whereas protecting its floor in main-part technologies. His theory: promote corporations on the thought of changing historical PBXes with x86 architecture servers.

Microsoft is helping Zafirovski to fabricate that case. In so doing, or not it's leveraging its total brand portfolio, notwithstanding it skill floating some wild ideas, reminiscent of implying the presence of a quiescent market amongst developers to create customized toolbar functions for PowerPoint and other office 2007 functions, that utilize factor-of-presence alerts from Microsoft exchange UM running on Nortel servers. Ballmer calls this a "line-of-enterprise" software, and some gain likened the theory to an additional variety of line, notwithstanding with slightly of ingenuity -- coupled with a truckload of sorely missing practicality -- the theory just might work.

"people gain PBXes, americans gain audio-conferencing systems or options that they buy, video-conferencing solutions, electronic mail - expectantly consummate Microsoft alternate - immediate messaging solutions, and these are consummate islands - the route you snare provisioned, the style you symptom in, your username, your address, the manner you learn somebody," observed Ballmer prerogative through his speech today.

"how many messages will they depart, on usual, in a number of places for someone?...You may sing or not it's a really livable world; consummate of us enact are vital in it, definitely, day by day. That doesn't fabricate it the ideal they will enact - the most fulfilling for the end-person, not to mention for the IT department or for the individuals who are constructing enterprise applications."

"you are going to exist able to give your users a magnificent, sole journey for fleet messaging, presence, and naturally, conferencing," Zafirovski clarified.

Ballmer painted a vast graphic, the utilize of some fuzzy brushstrokes, of an developed telecommunications infrastructure for consummate humanity, starting this year with a spin to an "built-in" communications structure. prerogative here, users learn to operate smarter communications purchasers, and Microsoft would energy the utility for these purchasers. This integration will tie everything together, together with the mobilephone, throughout those years by which it isn't practical for workplaces to believe doing away with the phone altogether for the OC.

but via 2010, a fresh angle would start, pushed via person claim to enter what Ballmer describes as the "converted" angle of communications, the residence one of the distinctive gadgets they utilize conventional birth to drop out of sight via attrition, fondness a vestigial sixth toe. additionally during this section, the returned-ends and servers birth to contemplate extra integration, utilizing a product Zafirovski outlined referred to as the Unified Communications built-in department. deem of this as an exchange-embedded PBX replacement, offered by route of Nortel.

"for many, a long time, both groups gain actually been in the company of communications. Nortel, degree without doubt, has been broadly in the 'telecom company,' as it's generic," explained Ballmer, making itsy-bitsy "quote-unquotes" in the air, "and Microsoft has been in the company of assisting people writer, transmit, email, and different suggestions, and in a sense, it become inevitable - people gain illustrious it for years - that you simply'd start to peer a convergence of communications."


Microsoft and Nortel present Alliance Roadmap | killexams.com true Questions and Pass4sure dumps

information

Microsoft and Nortel existing Alliance Roadmap Six months after announcing a telecommunications alliance, Microsoft and Nortel this week offered some early outcomes of their efforts and outlined a roadmap for future initiatives.

the two agencies first introduced their collaboration ultimate summer season.

The road map includes three fresh joint solutions “to dramatically ameliorate traffic communications by means of breaking down the limitations between voice, e mail, quick messaging, multimedia conferencing and different styles of communique,” in keeping with a statement by means of the two companies.

also included in the announcement are eleven fresh implementation services from Nortel and the pocket of more than 20 joint demonstration facilities where purchasers can event the technology, the observation endured.

furthermore, the two businesses illustrious they gain signed agreements with dozens of valued clientele, and gain developed a “pipeline of tons of of possibilities who are looking to realize the benefits of unified communications.”

From Microsoft's point of view, it's consummate Part of the company's long-time era play to merge consummate types of communications and messaging prerogative into a sole framework. A 12 months in the past, the traffic announced that it was merging its trade Server neighborhood with its real-Time Collaboration (RTC) community, and that it had begun to feel of both technologies comprising a "platform."

the fresh community became named the Unified Communications neighborhood (UCG) and resides in Microsoft's traffic Division. The conception for the fresh community emanated from a imaginative and prescient of adding continuity to a myriad of communications devices, applied sciences and modes -- from e mail and quick messaging to Voice over cyber web Protocol (VoIP), audio/video and web conferencing -- in a unified method.

The three fresh joint options announced by using the alliance this week are named Unified Communications built-in department, Unified Messaging, and Conferencing.

When it's accessible within the fourth quarter, UC built-in department will incorporate Nortel and Microsoft know-how on a sole piece of hardware that supplies VoIP and unified communications in far off offices.

Coming degree earlier within the 2nd quarter, Unified Messaging will goal to simplify consumer deployments, aboriginal session initiation protocol (SIP) interoperability between the Nortel conversation Server one thousand and Microsoft alternate Server 2007. The solution comprises Nortel skilled functions for design, deployment and support.

also coming within the fourth quarter, Conferencing will prolong Nortel Multimedia Conferencing to Microsoft workplace Communicator 2007. It goals to deliver a sole customer journey constant throughout functions reminiscent of voice, fleet messaging, presence, and audio- and videoconferencing.

This 12 months, the companies likewise plan to lengthen their existing unified communications solution — a unified desktop and dainty mobilephone for VoIP, e mail, rapid messaging and presence — to the Nortel communication Server 2100, a provider-grade traffic telephony product helping up to 200,000 clients on a sole device, according to company statements.

As for the highway map, the two groups gain fitted more than 20 joint demonstration facilities in North the usa, Europe and Asia, with greater than a hundred additional facilities scheduled to open through midyear.

Nortel has likewise introduced eleven core integration capabilities to befriend consumers build, installation and uphold joint unified communications options, together with end-to-conclusion challenge administration. Nortel claims it has already informed more than 2,200 VoIP experts to carry these features and will add more as deployment ramps up.

concerning the creator

Stuart J. Johnston has lined technology, principally Microsoft, considering February 1988 for InfoWorld, Computerworld, recommendation Week, and pc World, as well as for commercial enterprise Developer, XML & web capabilities, and .internet magazines.


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Nutanix, Inc.'s (NTNX) CEO Dheeraj Pandey on Q4 2018 Results - Earnings summon Transcript | killexams.com true questions and Pass4sure dumps

No result found, try fresh keyword!HANA is an extremely demanding strategic workload and we're delighted to travail with SAP to build a sturdy joint customer base. Coming to some color in Q4, this quarter, they added approximately 1,000 ... ...

Nutanix, Inc. (NTNX) Q4 2018 Earnings Conference summon Transcript | killexams.com true questions and Pass4sure dumps

Image source: The Motley Fool.

Nutanix, Inc. (NASDAQ: NTNX)Q4 2018 Earnings Conference CallAug. 30, 2018, 4:30 p.m. ET

Good afternoon. My appellation is Mike, and I will exist your conference operator today. At this time, I would fondness to welcome everyone to the Nutanix Fourth Quarter and Fiscal 2018 monetary Results Call. consummate lines gain been placed on mute to prevent any background noise. After the speakers' remarks, there will exist a question and reply session. If you would fondness to put a question to a question during this time, press * then the number 1 on your telephone keypad. If you would fondness to withdraw your question, press the # key.

I will now eddy the summon over to Tonya Chin, Vice President, Investor Relations and Corporate Communications. You may initiate your conference.

Thanks. honorable afternoon, and welcome to today's conference summon to discuss the results of their fourth quarter and fiscal 2018. This summon is likewise being broadcast live over the web and can exist 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 fourth quarter in fiscal 2018. If you'd fondness a copy of the release, you can find it in the Press Releases section of the Company's website.

We would fondness to remind you that during today's call, management will fabricate forward-looking statements within the significance of the Safe Harbor provisions of federal securities laws regarding the Company's anticipated future revenue, billings, extreme margins, operating expenses, net loss, loss per share, free cash flow, traffic plans and objective, product sales, plans and timing for and the impact of their transition to focus more on software-only sales and their transition to a subscription-based traffic model; expectations regarding products, services, product features, and technology that are under development or were recently acquired; competitive and industry dynamics; fresh strategic partnership and acquisitions; their end to acquire fresh technology; changes in sales productivity; expectations regarding increasing software sales; change in the segmentation of their sales organization and the impacts of such changes; their plans regarding how they will report the software content of their business; potential market opportunities; and other monetary and business-related information.

These forward-looking statements involve a number of risks and uncertainties, some of which are beyond their control, which could intuition 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 depend on them as representing their views in the future. They undertake no obligation to update these statements after this call. For a more minute description of these risks and uncertainties, delight refer to their quarterly report on shape 10-Q for the third quarter of fiscal 2018, filed with the SEC on June 12, 2018, as well as their earnings release posted a few minutes ago on their website. Copies of these documents may exist obtained with the SEC or by visiting the Investor Relations section of their website.

Also, delight note that unless otherwise specifically referenced, consummate monetary measures they utilize on this summon today are expressed on a non-GAAP basis and gain been adjusted to exclude inescapable charges. They gain provided reconciliations of these non-GAAP monetary measures to GAAP monetary measures in the Investor Relations section of their website and in their earnings press release.

As a reminder, consummate results included in today's summon and press release are using the ASC 606 revenue standard. Lastly, Nutanix will exist at the Piper Jaffray Conference in Dana Point on September 5th, and likewise at the Deutsche Bank Technology Conference in Las Vegas on September 12th. They hope to contemplate many of you there.

Now I'll eddy over the summon to Dheeraj. Dheeraj?

Thank you, Tonya. honorable afternoon, everyone. Q4 was another bizarre quarter and a distinguished bookend to their fiscal 2018. They grew their software and subscription traffic steadily throughout the year with Q4 year-over-year billings growth of 66% and Q4 year-over-year revenue growth of 49%. They delivered record performance in several areas, including delivering non-GAAP extreme margins of nearly 78% and growing their deferred revenue balance by 71% from the prior year.

Duston will dive deeper into these results shortly. But before he and I delve into Q4, let me spend a few moments focusing on their fiscal 2018 to highlight how they gain acted fondness a mammoth company, i.e., celebrating leverage at scale, and likewise fondness a wee start-up, i.e., pile things that people fondness at the selfsame time. In fiscal 2018, they delivered immediate to $1.2 billion in software and uphold billings, growing 54% year-over-year, and added over 3,600 fresh customers. In fact, their year-over-year growth accelerated from the previous year, despite the much larger base and having generated a higher free cash flux than the year before.

Last year, they achieved tremendous leverage in their fade to market. Customer productivity, or multiples for the first dollar after 18 months, is at an all-time elevated across consummate segments of the market. Their existing customers provide us massive leverage because of the property of their product and their obsession with customer success, as well as the size of the total addressable market of computing in the Global 10,000. This leverage from existing customers is likewise the result of their sales segmentation and their continued replatforming of the large enterprise as a broad operating system software value proposition. Over the next 18 months, we'll travail even harder on commercial segmentation, as they build a world-class feeder program for their mammoth market traffic with the befriend of school undergrads, Insight account executives, and highly leveraged SC to rep ratio specific to this market segment. This will allow their enterprise account managers to gain continued focus on the Global 5000, emphasizing an enterprise cloud sales motion and delivering on larger software deals. They gain likewise continued to streamline their marketing efforts by getting more surgical in their targeting, by region, by product, by customer, and by leveraging their digital assets.

The next natural milestone on the journey is leveraging software subscription, i.e., term license in the cloud. While we've talked about how we'll exist streaming their technology over the Internet of Xi, spelled X-I, they likewise gain an immense opening to transfigure their on-prem software entitlements, which were typically termed over the life of the device, to definite one, three, or five-year term licenses. This is yet another driver of leverage as shorter-term, smaller deals in the mid-market can exist fulfilled by Insight sales and digital delivery of software licenses. This likewise means that renewals of shorter-term deals can exist done by their Insight renewals team. This shift enables their territory sales teams to increasingly focus on larger customers and longer-term contracts. More on this in Duston's narrative.

Another zone of leverage we've achieved in the ultimate brace of years is around their software operating system. fondness the consumer cloud companies, they derive immense technology leverage from Linux, Apache, and increasingly, Cloud aboriginal Computing Foundation, CNCF, projects. While both Red Hat and Nutanix leverage open source, at their current pace, they expect to achieve Red Hat-like sales by fiscal 2021, in about half the time it took them, because of their accent on last-mile problems of enterprise rig reliability, insular grade design, and their innovation in data and orchestration services.

We're likewise seeing substantial leverage in having a distributor development team around the world, including in the United States, India, Germany, and now Belgrade. This leverage is now starting to justify in the route their fresh apps are coming together. AFS, or Acropolis File Services, now renamed Nutanix Files, will gain been done in almost one-tenth the time it took to build that within Red Hat, and with less than one-tenth the number of engineers, approximately. Their elevated provider of AHV, similarly took one-tenth the number of engineers than VMware and almost 15 years less time. ERA, their fresh organic database virtualization product; Calm, their multi-cloud automation and orchestration service; and Buckets, their fresh protest storage service, are equivalent to start-ups out there that are roughly ten times larger in employee size and gain taken about ten times more dollars to build, and almost five to ten times more time.

Flow, their Netbook security product, enjoys a similar competitive edge of wee developer teams that gain used Linux and technology from their recent acquisition, Netsil, now called Epoch; and too with Beam, their multi-cloud cost-governing SaaS; and their organic IoT platform named Sherlock. These are some services across areas and paths that we've added to their portfolio over the ultimate 18 months that will indulge in the APIs and their usability for enterprise cloud platform, including their billing, identity, and uphold services that we've invested in over the ultimate eight years.

Such R&D leverage notwithstanding, they requisite to invest in the fade to market machinery of these "apps" in the coming 24 to 36 months. Simply stiffing the current sales obligate will only consume money out of one pocket and allocate it into the other. The revenue from these newer products won't exist accretive until they gain thought about their P&Ls explicitly. This is why they are using an approximate 70-20-10 rule of thumb around capital allocation -- that is, 70% in their core business, 20% in the transformation of the traffic into cloud and subscription, and 10% on fresh products or services that will exist accretive to the platform. While they are maniacally focused on the success of each, they will fail fleet if a product doesn't work, and we'll hawkishly avoid waste, which at scale can become a problem.

Our attention to detail has enamored us to their customers, and that customer esteem fuels their ambition to act fondness a start-up again. In essence, we'll continue to build fresh products that delight people. One such case of a fresh product that delights people is Frame, a recent acquisition of a start-up founded by Nikola Bozinovic. Nikola's fire was in video optimization and GPU processing, and he used that fire to build a multi-cloud desktop virtualization product. He fundamentally believes that just fondness high-quality video that can exist streamed over the Internet through any browser, desktops can exist streamed through a browser following the benchmark principles of movie and image processing. Frame currently operates in a $3 billion market, and they deem they can grow this market with their focus on instant delivery and End user delay. Frame is a rethink of the digital desktop market, and its vacant canvas approach to multi-cloud and cloud aboriginal architecture makes it 10X simpler than traditional software and has historically taken 10X more people and time to build.

All these fresh services are getting ready for Xi, and Xi itself is now available through its early access program, with the general availability noiseless planned for the End of the year for the catastrophe recovery service product, which they are calling Leap. Leap redefines cloud seeding, with one-click failure and failback, what if parallel universe testing, and hybrid cloud migration. They hope to truly blur the line between on-prem and off-prem clouds, between owning and renting, creating a fresh category around hyper-converged clouds.

As they travail on their own platform, they continue to broaden their ties across the industry to provide their customers with more validation that they can depend on their platform for the most faultfinding applications. Just yesterday, they became the first NCS software to become certified to hasten SAP HANA workloads. HANA is an extremely demanding strategic workload, and we're delighted to travail with SAP to build a sturdy joint customer base.

Coming to some color in Q4, this quarter, they added approximately 1,000 fresh customers, bringing their total number to 10,610. In this ultimate fiscal year, they added nearly as many customers as they had when they IPOed two years ago. They now matter 710 Global 2000 companies as customers, adding approximately 40 in Q4 2018 and 140 overall in fiscal 2018.

Q4 likewise brought continued momentum in large deals, with 46 deals worth more than $1 million, nine of were worth more than $3 million, and two of which were worth more than $5 million. They closed 201 deals worth more than $1 million in fiscal 2018, up from 144 in fiscal 2017, and now gain 26 customers with a lifetime spend of more than $10 million, up from 11 in fiscal 2017. And they continue to contemplate depth across perpendicular markets, with customers fondness colocation provider Cyxtera; motor sports racing management company International Speedway Corporation; telecom provider Netcom BB; and law difficult Akin Gump Strauss Hauer & Feld.

This quarter, they closed 23 deals worth more than $1 million with customers with a lifetime spend of more than $5 million. Their total number of accounts with a lifetime spend of more than $1 million increased by 240 year-over-year, and their total lifetime bookings for the selfsame group grew by more than 75% year-over-year. One of these customers, a Global 2000 chain electronics retailer, continues to expand its utilize of their platform within its enterprise cloud. This customer relies on their platform for its mission faultfinding workloads, including a high-end and every large database environment. This customer likewise runs containerized applications on their software and continues to purchase planned robotics in their commission project for its distribution centers.

Another of these customers, an American multinational biopharmaceutical company within the Global 2000, has a lifetime spend of more than $10 million, and uses their platform to uphold a number of utilize cases within its environment, including VDI and remote offices.

A large American healthcare company is another one of these customers. After initially selecting their platform for its ROBO sites, remote office offshoot office sites, this Global 2000 customer decided to undertake a complete data heart modernization project on their platform, and now has a lifetime spend of more than $10 million.

This is another sturdy quarter for their U.S. federal business, which contributed five deals worth more than $1 million. Their top deal of the quarter and the largest in the company's history, worth more than $20 million, was with a DOD agency looking for a simple and resilient solution to power its combat edge clouds across the world. This customer will utilize their enterprise cloud platform to power 15 remote sites running two different networks. Another one of these deals with a different entity within the DOD continued to expand its utilize of their platform with a repeat buy in the quarter, which included the purchase of licenses for their smooth application lifecycle management offering.

Our second largest deal of the quarter, worth more than $5 million, was one of the oldest American monetary services firms in continuous operation. That is one of the top five largest passive fund managers in the U.S., who selected their software as the infrastructure of altenative for a global VDI employment, and completed an initial order for the first angle of its deployment in the U.S.

We likewise gain had a noteworthy win with an India-based banking customer. This repeat customer decided to expand the utilize of their platform to include their file services, AFS, now called Nutanix Files, and likewise their hypervisor, AHV. One of their earliest AHV customers, Netcom BB, an APAC-based telecom company, likewise purchased this quarter as Part of its cloud migration. This customer had moved some workloads to the public cloud and is now shifting them back to its Nutanix-based on-prem cloud. AHV was likewise a significant factor for an American extravagance jewelry and specialty retailer headquartered in fresh York City. After exhaustive head-to-head testing another hypervisor, this Global 2000 customer chose AHV as its hypervisor of altenative for its ROBO deployment.

In a multi-million-dollar deal this quarter, Akin Gump Strauss Hauer & Feld LLP, a U.S.-headquartered international law firm, will utilize their software to power its North American cloud, to power the entirety of its U.S. operations and approximately 90% of its services worldwide. This customer invested in their ultimate license in Part because of their software-based data encryption, and they plan to consume edge of AHV to hasten internal IT management systems, as well as SQL database workloads. They likewise intend to roll out 14 remote sites globally in early 2019.

We secured 21 deals worth more than $2 million this quarter, and in one, a French multinational monetary services organization continues to extend their platform throughout its global cloud. This Global 2000 customer now runs more than 20,000 VMs on Nutanix software and has a lifetime spend of over $10 million.

One Global 2000 repeat customer, a French multinational hospitality company that owns, manages, and franchises hotels, resorts, and vacation properties purchased their smooth offering for an automation project that will deploy over the next several months. This customer has a lifetime spend of more than $3 million and uses their software for a variety of workloads, including SQL database and Splunk.

Our traffic was built on a foundation of talented and driven employees, innovative technology, and an aggressive fade to market strategy. In fiscal 2018, they strengthened each of these, adding fresh board members and senior leadership in key areas. They gain grown to more than 4,000 employees in the ultimate eight-plus years. And they gain to exist watchful of complexity, complexity in products, in the organization, and the overall business. Keeping them simple and continuing to exist employee and customer-obsessed gain to exist their core competitive advantage.

We recently codified and launched the core principles on which this company has operated to ensure that they both document and communicate the honorable north both for employees and their broader Nutanix community. Overall, Q4 was a distinguished bookend to a tremendous fiscal year. Their journey is ambitious, and there's noiseless much travail to exist done. They believe the difficult travail and dedication of their team and their design focus gain allocate us on a uniform path toward a goal of being a honorable enterprise cloud company that blurs the lines between owning and renting computing.

Allow me to eddy the summon over to Duston. Duston?

Duston Williams -- Chief monetary Officer

Thank you, Dheeraj. Before they snare into the review of their sturdy Q4 and fiscal 2018 results, I thought it would exist helpful for me to summarize where they are in their overall software transition, and more importantly, where we're headed in FY19.

In fiscal 2018, they embarked on a traffic and consumption model transition, the likes of which few if any companies gain accomplished, focusing on the elimination of the pass-through hardware revenue associated with the sales of their turnkey NX Appliances. During their Q1 2018 earnings summon just nine months ago, they committed to a bold plan to eliminate a majority of their pass-through hardware revenue. Today, I'm extremely pleased to sing that they gain eliminated their hardware pass-through revenue, exactly according to this plan. It's principal to note that consummate of their non-portable software transactions associated with the past appliance sales were not perpetual licenses, but rather licenses telling for the life of the device. Therefore, they expect a large portion of these historical non-portable software licenses to renew over time.

Beginning in Q2 2019 and ramping through the second half of the fiscal year, they will fabricate changes to how their software solutions will exist packaged for their non-portable software sales, directly associated with a Nutanix appliance or NX. For instance, they will initiate a phase-in approach for software license in connection with a fresh Nutanix NX sale that will transition the traffic to a term-based subscription licensing model. This will supersede today's licensing structure, which is based on the life of the hardware, giving customers greater altenative and flexibility around their software procurement strategies, and provide portability of the software.

Over the ultimate few quarters, we've likewise been focused on selling more term-based subscription software associated with their current offerings -- in other words, deals without any associated hardware. These term-based subscription software deals typically one, three, or five-year terms, gain not only been increasing in number, but likewise in deal size. And finally, their recent introduction of Beam, Frame, and Xi, as well as other future offerings, allow us to initiate selling cloud-based subscription software.

In association with these changes, birth Q1 fiscal 2019, they will disclose their software and entitlement details in a manner that is consistent with many other software companies. They will fade from providing breakouts for pass-through hardware, software, entitlements, and support, as they gain done this year, to providing the following four category breakouts. One, pass-through hardware. This category will affect the cost of any hardware remaining that they transact on their books, and this will reflect no change to how they currently report hardware. Two, non-portable software. Non-portable software will delineate sales over their software operating system when delivered on an appliance by us, one of their shrink manufacturers, or one of their OEM partners. The software licenses associated with these sales are typically non-portable and tied to the life of the appliance it is delivered on.

Three, subscription. The category of subscription sales will exist generated from the sales of renewable software, such as term-based licenses, and cloud-based software as a service, or SaaS, offerings, as well as include renewable software entitlement and uphold subscriptions. And finally, professional services. The professional services sales category will include sales of professional services relating to their products.

We believe this fresh breakout will give greater transparency into their business, particularly as it relates to the details around the honorable recurring nature of their business. And birth next quarter, fondness the approach they took with providing their estimated hardware reduction, they will provide a multiple-quarter outlook on how they contemplate their subscription traffic trending as a percentage of the total business.

Now they spin on to an overview of fiscal 2018 and the fourth quarter performance. I'll first feel on a few key fiscal 2018 highlights. As you heard, in fiscal 2018, software and uphold revenue increased 47%, while software and uphold billings grew 54%. Their bill to revenue ratio increased to 1.23 in fiscal 2018 versus 1.17 in fiscal 2017, driving the deferral of an incremental $55 million of elevated margin revenue during the quarter. The increase in this revenue is directly correlated to a surge in non-portable software and subscriptions sold during the year.

Gross margins improved to 68% in fiscal 2018 versus 63% in fiscal 2017, and they are likewise pleased that they self-funded their rapid at scale growth this year, while generating $30 million in free cash flow. And their Rule of 40 score in fiscal 2018 was 51, a smooth very few companies achieve.

Now, a few of the Q4 highlights. Revenue for the fourth quarter was $304 million, growing 20% from a year ago and up 5% from the previous quarter, ahead of their guidance of $295 to $300 million. In Q4, they targeted to eliminate $95 million of pass-through hardware revenue, and they eliminated exactly $95 million. Software and uphold revenue, which most accurately reflects the growth of their business, was $268 million in Q4, up 49% from the year ago quarter, and up 18% from the prior quarter. Total billings were at $395 million in the quarter, representing a 37% increase from the year ago quarter, and a 12% increase from Q3.

And once again, and consistent with ultimate quarter, this billings performance far exceeded their implied guidance and the current street estimates of $372 million. Software and uphold billings were $359 million, growing 66% from the year ago quarter, and up 23% from the prior quarter. At the start of fiscal 2018, they committed to gain their pass-through hardware revenue delineate only 9% of their total billings by Q4, and they delivered on this target exactly in the quarter. On a billings basis, their product mingle for Q4 was 91% software and support, and 9% pass-through hardware.

Although their forecasts are always comprised of a mingle of wee deals and large deals, and various associated probabilities, the referenced greater than $20 million deal did result in the U.S. public sector of their traffic exceeding its plan to some degree, which partially contributed to the Q4 billings performance. The bill to revenue ratio in Q4 was 1.3, exceeding their previous rate of 1.25, and driving the deferral of an additional $12 million more in revenue that would gain been reflected in both revenue and extreme profit. It's principal to note that at a bill to revenue ratio of 1.25 to 1.3, Nutanix is, on a net basis, deferring a greater percentage of billings than most SaaS companies, including Salesforce, Workday, ServiceNow, VMware, Splunk, and Tableau. Their Q4 deferred revenue increased by $91 million from Q3, up 71% from a year ago and up 17% from the previous quarter, ending the quarter at $631 million.

New customer bookings represented 30% of total bookings in the quarter, up from 26% in Q3. In Q4, their software and support-related bookings from their international regions were 40% of total software and uphold bookings, versus 38% in Q4 2017. Their non-GAAP extreme margin grew strongly in Q4 to 77.7%, up from 62.% in the year ago quarter, 68.4% in the prior quarter, and better than their guidance of 73% to 74%. Operating expenses were $256 million, and within their guidance compass of $250 to $260 million. On a non-GAAP basis, net loss was $19 million for the quarter, a loss of $0.11 per basic share.

Now a few balance sheet highlights here and some more other metrics. They closed the quarter with cash and short-term investments of $934 million, and that was up from $923 million in Q3. DSO was on a straight medium with 78 days compared to 60 days ultimate quarter. Month three represented less than 53% of their total bookings; however, billings were a bit more backend loaded. The weighted medium DSO was 23 days in Q4. They generated $23 billion of cash from operations in the quarter, which was positively impacted by $14 million of ESPP inflow, and they generated positive $6 million in free cash flux during the quarter. This performance was likewise positively impacted by the selfsame $14 million of ESPP.

Now I'll eddy to the guidance for the first quarter. On a non-GAAP basis, they expect the following for Q1. Billings between $370 and $390 million versus current consensus of $374 million; a bill to revenue ratio of approximately 1.26; revenue between $295 and $310 million; extreme margin between 78% and 79%; operating expenses between $280 and $290 million; and a per participate loss of between $0.26 and $0.28 using weighted medium shares outstanding of $176 million.

Now let me just participate a itsy-bitsy bit more color regarding the Q1 guidance. Their billings guidance assumes pass-through hardware to exist 5% to 6% of total billings, versus their previous rate of 7%. This 1 to 2 percentage point reduction negatively impacts total billings and revenue by $4 to $8 million that otherwise would gain been reflected as additional pass-through hardware billings and revenue. The offset to the slightly reduced billings and revenue expectation is that they now expect higher extreme margins, which will continue to hasten significantly ahead of their prior expectations.

We gain provided a bit wider guidance compass this quarter to accommodate some potential fluctuation in the ultimate pass-through hardware percentage. And it's likewise very principal to note that the incompatibility in the estimated bill to revenue ratio of 1.26 versus the current street consensus of 1.21 results in upwards of $12 million more deferred revenue than otherwise, which would gain been reflected in both revenue and extreme profit.

Our billings guidance likewise implies that software and uphold billings will grow between 50% and 55% from Q1 2018. And one final comment on their Q1 guidance. Q4 was another sturdy quarter, which provided us with further conviction that their Q2s, the January quarter, and their Q4s, the July quarter, continue to snare stronger, while their Q1s, the October quarter, and their Q3s, the April quarter, are exhibiting a bit softer seasonal trend. They expect this pattern to continue into fiscal 2019, and this is reflected in their Q1 guidance.

And before they open up the summon for questions, I'd fondness to feel on a few additional thoughts around fiscal 2019. First, it will exist another exciting year of transition for Nutanix as they continue their traffic model and consumption model transition. With a focus on expanding their current market leading position, while at the selfsame time remaining within their Rule of 40 commitment, they expect to significantly increase spending in fiscal 2019. This spending will continue to exist directed toward their core products, as well as a substantial increased allocation to their growing fresh product portfolio, including but not limited to Xi, Beam, Epoch, Era, Flow, Sherlock, and their newest offering, Frame, many of which are cloud-based subscription offerings.

We believe these investments will provide sturdy leverage based on their skill to drive significantly increased shareholder value over time. As a point of reference, one very recent analyst report estimated that their Beam acquisition could exist worth an incremental $1.2 billion of enterprise value in four years. As Dheeraj mentioned in his narrative, they are clearly not taking a myopic approach with their investments. And although these fresh investments are not yet generating any significant revenue, they will certainly play a major role in driving superior growth through fiscal 2021 and beyond. At their next Investor Day, they will provide some clarity into their projects for their fresh product portfolio.

When they sit back and analyze their spending points, they consume note of the following. Their sturdy growth in spending will exist completely self-funded by their free cash flow. Their ramped rep sales productivity has increased sequentially for the ultimate three six-month periods, ending in Q4 2017, Q2 2018, and Q4 2018, and their customer repeat purchase multiples continue to increase. Based on what they believe to exist a very compelling ROI on their investments, fiscal 2019 will clearly exist a year that they trade off free cash flux and profitability in favor of extending their market leading position and superior growth at scale.

Under the Rule of 40 framework, their guiding principle has been and will continue to exist to deliver self-funding superior growth. Even with their planned increase in spending, they expect to remain within their committed Rule of 40 score of 40%, with most and more likely consummate of this score coming from annual software and uphold revenue growth. These incremental investments in their core offerings, as well as their growing fresh product portfolio, strengthens their conviction that they remain on track to deliver at least $3 billion in billings in FY21.

And with that, Operator, if you could open up the summon for questions, that'd exist great.

Questions and Answers:

Operator

At this time, I'd fondness to remind everyone, in order to put a question to a question, press 1 on your telephone keypad. They will respite for a instant to compile the mp;A roster.

Your first question comes from Andrea Nowinsky from Piper Jaffray.

Andrea Nowinsky -- Piper Jaffray -- Analyst

Great, thank you. Maybe just a question on the fresh subscription-based licenses you talked about. Can you just give us an view on what the breakeven point might exist as to when a customer purchasing a perpetual license or the revenue from the subscription-based license would surpass what was spent from a customer purchasing a perpetual license? And then whether you deem they'll spend more over a three-year era with the fresh subscription license you're offering?

Dheeraj Pandey -- Chief Executive Officer

Yeah, thanks for the question. So, obviously, their current licenses are not perpetual. They were the life of device. That's the most principal thing, that when they would gain gone for fresh hardware -- remember, this is server-side hardware. It is not any benevolent of proprietary hardware. It's commodity, off-the-shelf servers, so people are probably refreshing them every four years. And with the fresh model, we're going for one, three, and five-year term licenses. And they expect that most often, people will buy three-year licenses, which is what their medium uphold term has likewise been.

And I deem the mammoth goal here is that when they glimpse at the midmarket transactions, the conversations that are midmarket, sellers are having in the midmarket, they expect to really fade and gain another leverage point in terms of discounting deportment and whether they can actually fade and sell them one-year licenses. In many cases, this is the cloud-like consumption model of saying, why don't you just try with a one-year term? And in that, they don't gain to discount as much. And over time, that one year could glimpse fondness six months or one quarter. So, they really gain a continuum in which they can fade and negotiate with the market at scale, especially in the midmarket transactions.

Andrea Nowinsky -- Piper Jaffray -- Analyst

Okay. And then when you started the transition model or the transition to software only, I deem you talked about how the deal sizes were actually going up. Can you just give us any color in terms of how that's played out since you started the transition, and maybe just a brief explanation as to why the deal sizes are going higher? Is that just from customers doing bigger ELAs?

Dheeraj Pandey -- Chief Executive Officer

I deem it's multiple factors. One of them is obviously their sales obligate has been segmented, so it's looking after larger enterprise customers. And definitely not ELAs. We're not doing any ELAs at all. consummate their deals and software, I mean, except for one or two of them, gain consummate been term licenses, including for uphold as well. So, yeah, as a company, we've really stayed away from scorching the earth, and going after large deals, and pulling from the future.

Andrea Nowinsky -- Piper Jaffray -- Analyst

Great, thanks.

Operator

Your next question comes from Matt Hedberg from RBC Capital Markets.

Matt Hedberg -- RBC Capital Markets -- Analyst

Hey, thanks for taking my questions, guys. sturdy results this quarter. Your End markets are clearly growing rapidly. You guys are benefiting from a shift in spend away from legacy solutions. I guess, Dheeraj, from a competitive perspective, fundamentally, how enact you differentiate yourself from VMware, which should I deem exist your biggest competitor there? And just, how is your fundamental approach different?

Dheeraj Pandey -- Chief Executive Officer

Yeah, yeah. Thanks for the question, Matt. I think, though they definitely sell similar products, they are relatively immediate to the Rule of 40. They're at 47. They are at 51 ultimate fiscal. But they're likewise managing a growth of 12%, and they gain to manage much higher growth, so. And in some sense, the similarities End there. And now you start to contemplate how the companies are so different. And they gain an install base of, I don't know, maybe 40-plus billion. They gain an install base of almost four billion. They were really created in the Microsoft era of right-click, while they were really born in the era of Apple and machine learning, which is one or zero clicks, so there's a huge accent on design as well.

A lot of VMware's technology is inside the kernel, which is the hypervisor, while they enact a lot of travail in the user space, and therefore, they End up leveraging a lot more open source, which VMware is trying to enact via the Amazon partnership, actually. They gain a lot of perpetual licenses. They are aggressively gonna spin toward subscription in the imminent future. And they are very competitor-obsessed. They are very customer-obsessed. And I deem for us, the focus has always been about the customer. They had to focus so much on design. They didn't snare it easy. They sold themselves to EMC to build an operating systems company. They had to enact it one customer at a time, inching their extreme margins from low 40s to elevated 70s, one NPS point at a time. And it's been hard, and it's been worth every penny.

They tried vCloud Air, but that didn't ultimate long. And if you deem of us, they were born with hardware, and ops, and suffer of complete stack customer uphold for the ultimate several years. They never gave their uphold away to OEM, especially L3 support. So, when you're operating a cloud, you requisite to know ops really well. Customers don't really dependence about the cloud. They dependence about a cloud, as long as it runs their apps seamlessly. Even when it comes to PaaS, Platform as a Service, their approach is a lot more different than VMware. They will gain to deal with Pivotal and Amazon at the selfsame time, and there's gonna exist swim lanes and flowcharts. If there's an account with Amazon but not Pivotal and not Dell EMC, then enact this, otherwise if it's Pivotal and Dell but not Amazon, then you contemplate -- so you contemplate the point. And there's this complexity of EMC back in the day. Too many swim lanes, too much strategy in the field, too much friction to reduce. It becomes less about the customer and more about protecting the routes to market. It's really principal to gain a clarity of purpose in product design.

And also, I deem the route they are doing it in terms of pile their own journey for digital delivery, if you deem about Target and Toys'R'Us, they stopped figuring out how to build the muscle around digital delivery. But digital delivery is the fresh oxygen for any tech company. That's what Hollywood left for Netflix to solve. And they consummate know the rest. selfsame with Toys'R'Us. Digital is the fresh oil. Digital is the only route to connect to the End user in true time. And computing is about e-commerce now. Wanting to loan won't nick it, as Hollywood realized. So I deem digital delivery will matter, which is what Xi and many things around Xi that we're building.

And also, they can't spare too much to one side in this multi-cloud world. As I mentioned, customers are looking for a cloud, not the cloud. There's a intuition why VMware didn't want to exist Part of Dell. They had to exist the Switzerland of servers. But what about looking at cloud as the fresh server? Doesn't someone requisite to play the Switzerland of clouds and fabricate money fondness VMware did a decade ago? That's their strategy, and that's how we're differentiated against VMware.

Matt Hedberg -- RBC Capital Markets -- Analyst

Super helpful. And maybe just maybe just a quick one for Duston. esteem your commentary on expense growth this year. I deem per your guide, I deem you're looking for about $30 million of sequential opex growth from Q4 to Q1. Can you benevolent of befriend us how they should deem about opex growth through the year? I mean, is it $10 million, $15 million sequentially? Just any sort of befriend there I deem would exist helpful from a modeling perspective.

Duston Williams -- Chief monetary Officer

Yeah, I deem the -- it's probably obviously more than that now with the fresh product focus here that -- and obviously, a lot going to the core, as Dheeraj mentioned earlier, products. But clearly, we'll up their spend on fresh products, which they should. And I deem the easiest thing from a model perspective is to benevolent of fade back to my comments of the Rule of 40 and staying within that 40% commitment, but highly likely consummate of that comes from -- on the revenue side. So, I deem when you glimpse at your model and adjust some of that, it will give you a feel for probably what you should enact on the expense side.

Matt Hedberg -- RBC Capital Markets -- Analyst

Got it. Thanks, guys.

Operator

The next question comes from Rod Hall from Goldman Sachs.

Rod Hall -- Goldman Sachs -- Analyst

Yeah, hi, guys. Thanks for the question. I guess I wanted to start off by, I guess, the one, three, and five-year term licenses. I wonder, are there any other variations within these licenses? I know in the past you guys gain talked about maybe varying the cost by number of quarters or size of the machine that the license is running on. So, just wanted to contemplate if there are other nuances within that model, and then I've got a follow-up as well.

Dheeraj Pandey -- Chief Executive Officer

Yeah, definitely. Thanks, Rod, for the summon -- for the question. So, they are looking at two different axes; one is term, the other one is capacity, which is the benevolent of t-shirt size people want to buy. It could exist higher on CPU and higher on flash, or higher on CPU and low on flash. And these are the two sort of vectors we're looking at. One is term. The other one is capacity, which includes both computer and glimmer storage.

Rod Hall -- Goldman Sachs -- Analyst

Okay. Thanks, Dheeraj. That's really helpful. And then, I likewise wanted to snare a feel -- I know you said you're gonna angle it in, and you're going to start reporting this in the first quarter. Can you give us any view how fleet it's gonna angle in? Are you gonna just -- are you out of the shoots now and starting to sell it across the board, or how does this progress through the business, I guess?

Dheeraj Pandey -- Chief Executive Officer

Yeah. I mean, we've been doing enough of the third party hardware selling for the ultimate 18 months now. So, many of those are already there in their business. It's not fondness a fresh muscle that they gain to build. The fresh one is going to exist around -- really going in, homogenizing and harmonizing the route we've been doing it for the SuperMicro hardware and the relaxation of the hardware that others gain been buying directly. But I deem all-in-all, I deem you'll contemplate a projection approach out a quarter from now. We'll talk about what subscription looks like. Right, Duston?

Duston Williams -- Chief monetary Officer

Yeah. Yeah.

Rod Hall -- Goldman Sachs -- Analyst

So, it's noiseless -- it's not fully available, Dheeraj? Just to exist clear, it will become available sometime this year, depending on what ilk of license you might want to buy. Is that right?

Dheeraj Pandey -- Chief Executive Officer

No. I deem the third party stuff -- as I said, already we've done almost 15% of that just this ultimate quarter. So, there's enough that we've been doing for the ultimate 18 months on other party hardware, and that was always subscription. It was never a perpetual license. And now, we'll add consummate their customers who were saying, you know what, I would rather buy a white box, which is SuperMicro, and then the software on top of it. That software will now exist portable. That's the mammoth change you're making in terms of entitlement, proverb you can consume this software and allocate it on any other hardware over time.

Rod Hall -- Goldman Sachs -- Analyst

Okay. consummate right. Thank you very much.

Duston Williams -- Chief monetary Officer

And then, Rod, that's what they mentioned that we'd give you some further insight into Q1, how they deem that progresses through the fiscal year.

Rod Hall -- Goldman Sachs -- Analyst

Great. Okay, thanks, Duston.

Operator

Your next question comes from notice Murphy from J.P. Morgan.

Mark Murphy -- J.P. Morgan -- Analyst

Thank you, Dheeraj. I'm interested in how you view the hybrid cloud strategy of the major public cloud providers. For instance, Amazon with VMware, and they're extending on-premise with RDS on VMware now. Microsoft's with Azure Stack. Google is now offering GKE on-premise. So, they're -- it just seems fondness there's so many vectors of change there in -- literally in the ultimate month. And I'm just snoopy what you deem is the net effect? Is it helping to validate the overall Nutanix vision, or does it benevolent of up the ante on your Google partnership? Or is there any possibility it would intuition customers to respite and sort of evaluate the path forward at some point?

Dheeraj Pandey -- Chief Executive Officer

Yeah. Thanks for the question, Mark, and thank you for the upgrade today as well. So, if you fade back seven years, when they really started the company, there was a lot of froth about converged infrastructure, large companies coming together and proverb -- with Cisco, and EMC, and VMware, and NetApp, there's consummate sorts of consortiums that are coming together and saying, this is the next cloud, in some sense, in a box. And it did gain revenue. It had a buzz for a while. And then the question is, what eventually survived? I mean, nobody talks about Vblock and FlexPod anymore. But the true question is, who's gonna build the best operating system for the multi-cloud? And it's very, very early in that marathon.

I deem we're trying to wait fondness the route VMware stayed out of the server wars, saying, look, they just requisite to exist the Switzerland of servers. Design will win, and as will customer love, I think. For example, deem of Xi Leap, which is their view as a service. I will spend two-plus years pile something that really will hyperconverge on-prem with off-prem. Now, deem of Calm, how it's painfully pile migration within clouds and melding Kubernetes with VMs. selfsame thing with the RDS equivalent, Era, as they summon it, we'll utilize so much for their compute and storage functionality. And the battle will exist back to data services and performance.

So, it's really early in the hybrid wars. The one thing that we've at least approach to esteem from these announcements, that the public cloud folks are now at least being pragmatic in proverb that, look, not everything can exist rented. There's enough laws of the land, and laws of physics, and laws of economics around owning and renting that will dictate this view of a hybrid cloud. And they gain been proverb this for the ultimate two, three years now. And I deem innovation eventually will win, and that's what happened to converged infrastructure. Today, nobody talks about the word converged infrastructure.

Mark Murphy -- J.P. Morgan -- Analyst

Thank you for that, Dheeraj. And Duston, if I may, I had a follow-up. The billings result and the billings guidance are obviously quite robust. And I was just wondering if you -- could you just clarify whether consummate of that large U.S. DOD deal win is reflected in the result this quarter? And then when you glimpse at the pipeline composition, does it appear fairly diversified and predictable, or would you sing that there are more of these large discrete deals along the lines of the DOD win that might exist a itsy-bitsy harder to predict the timing?

Duston Williams -- Chief monetary Officer

Yeah. So, on the mammoth deal that they referenced greater than $20 million, it was consummate billed in Q4. Although that's one of the reasons their bill to revenue ratio went up a itsy-bitsy bit is that just the nature of the uphold piece on that. Only about 40% of that deal was actually recognized in revenue in the quarter, and the relaxation will exist over the uphold period. So, that's the first piece there.

And on the second piece, I deem just the traffic in general, as Dheeraj talked about extensively earlier, is that we're seeing bigger deals, and they will continue to snare larger and larger deals. Now, Q1 has the additional variable of federal, of course, with the yearend. We've always had a pretty honorable Q1 for federal; we're assuming it's gonna exist OK this quarter also, a decent performance there. And any time you're talking federal, you gain some lumpiness in there. So, we'll gain some bigger deals that will issue in the quarter. We've assumed some will, some won't, so we've taken, I hope, a pretty honorable balanced approach from a federal perspective.

Mark Murphy -- J.P. Morgan -- Analyst

Understood. Thank you.

Operator

Your next question comes from Jason Ader from William Blair.

Jason Ader -- William Blair -- Analyst

Yes, thanks, guys. Duston, could you comment on backlog and visibility at quarter end? I know that's sort of -- you just talked a itsy-bitsy bit about that on the fed side. But how are you fire about this -- the Q1 seasonality and having that confidence in that billings sheperd that you gave?

Duston Williams -- Chief monetary Officer

Yeah. I mean, they wouldn't gain guided if they didn't feel reasonably confident in the numbers. So, that's the first point there. I'm sorry, the first -- your first?

Jason Ader -- William Blair -- Analyst

Backlog.

Duston Williams -- Chief monetary Officer

Oh, backlog, yeah, yeah. On backlog, it always bounces around. It bounced around a itsy-bitsy this quarter, but not substantially up or down from prior quarter. The composition has changed. They used to gain more hardware, not zero margin hardware embedded in that. Now, it's pretty much -- the vast majority of their backlog is software and support, as you might expect. So, it's a better profile of backlog also.

Jason Ader -- William Blair -- Analyst

Okay, great. And then for Dheeraj, it's difficult to retain up with consummate the fresh products, honestly. You gain a laundry list prerogative now. But which products -- I mean, can you benevolent of hone us in on a brace of products that you feel very strongly about, let's say, over the next 12 to 18 months that will start to become more meaningful?

Dheeraj Pandey -- Chief Executive Officer

Thanks, Jason, for the question. Yeah, I mean, if you fade back to, like, the introduction of the iPhone, there had to exist some aboriginal apps that Apple itself had to build. But if you don't build those, you don't snare the suffer of what it means to build a platform. So, it was upon us to really fade and test every itsy-bitsy facet of the underlying operating system, the platform, the cloud services, the APIs, many things that consummate these six to eight apps are really doing. And without pile your own, there's no viable platform per se. And that's what we're really doing in six to eight of these. A brace of these are really honorable in terms of the pledge of what they really drag in terms of compute and storage. They will fade and -- like, for example, Frame and Era, Era being the database virtualization product, which is an equivalent of RDS, and Frame, which is their digital desktop product. Both of these will really fade and drag a lot of their core services that we've been selling for the ultimate seven, eight years.

And I feel fondness these two could exist very, very large in some sense. Obviously, smooth makes a lot of things sticky. And we've even told the smooth developers to fade and cannibalize Nutanix, if that's what it means, actually, because if they build with such a mission, then they'll actually fade and fabricate money for their customers. It's not supposititious to pay the strategy tax of Nutanix. It's supposititious to pay the death of multi-cloud, actually. So, they're doing a lot of travail and orchestration and automation in the multi-cloud world that lets us glimpse fondness a Switzerland in this multi-cloud world going forward itself.

So, I deem net-net, I would sing these two products, Frame and Era, will fade drive a lot of their core services. And then these others, including Beam, and Calm, and Sherlock, and Epoch, many of these will really consume us to developers. That's the mammoth goal of the company prerogative now, is let's only fade to the developers, builders, as opposed to just IT operators. That's the quest for this company in the coming three years is, can they fade and relate to them? Can they bring a lot of open source stuff to them? Because at the End of the day, that's what Amazon PaaS is consummate about. Amazon didn't build anything new; they just took a lot of open source Apache and CNCF stuff and made them into commercial services. So, there's a huge endeavor in really proverb let's bring consummate of that with the benevolent of suffer of hybrid that people gain not yet seen.

Jason Ader -- William Blair -- Analyst

Does that pit you against Citrix, a historical partner, a itsy-bitsy bit on the Frame side?

Dheeraj Pandey -- Chief Executive Officer

You know, it's -- I'd sing yes and no, because they definitely gain a very loyal customer base, especially in the Global 2000. And Frame is going with a very different mindset of, let's deliver to a browser. And there's a lot of very large enterprises which will consume a long time to really even deem of digitally delivering a Windows suffer to a browser itself. And I deem in the midmarket, we'll definitely fade and really travail with Citrix to design out what does it connote to simplify their suffer and their suffer of Citrix cloud. There's a lot of travail ahead between them and us. And I'm meeting their CEO soon, a brace of times next month.

And the total goal is to not deem of it as a zero-sum game. I mean, one thing, Jason, that they really thought difficult about is, if you gain a growth mindset, it's never a zero-sum game, actually. And there's a route to really grow this market. I mean, 65 million PCs a quarter, a billion PCs around the world. I mean, it's crying out loud for digitization, and nobody has done a honorable job operating it. So, I deem there's a massive opening both for Citrix and for Nutanix to fade and grow this market.

Jason Ader -- William Blair -- Analyst

Thank you.

Operator

Your next question comes from Aaron Rakers from Wells Fargo.

Aaron Rakers -- Wells Fargo -- Analyst

Yeah, thanks for taking the question. I enact gain a follow-up as well. Just pile on the ultimate benevolent of thoughts there, when I deem about your $3 billion of billings target looking out to fiscal 2021, or I even deem about your silhouette of investment or capital allocation around 70-20-10, and you deem about that 10% of fresh products and services that should exist accretive to the platform, what is the goalpost for you guys in terms of the contribution from them? If I deem about that $3 billion, how much of that traffic enact you deem could exist driven by that fresh set of products or services?

Dheeraj Pandey -- Chief Executive Officer

Yeah, so, maybe I'll consume a stab, and Duston, you should sing the same, actually. There's a Part of me as an entrepreneur that says, prepare for the worst, exist paranoid, these fresh products will befriend you snare to $3 billion at least. And the side of me that's optimistic that says, then, if things are going well, then these fresh products will fade and exist accretive on top of the $3 billion. And so, I deem it's very early prerogative now. I would rather play the conservative game and sing that they gain to assume that in a more strident landscape, the market, these things are actually going to befriend us snare to at least $3 billion with a honorable amount of effort.

Duston Williams -- Chief monetary Officer

Yeah, I think, just to supervene on there a itsy-bitsy bit, and it's a completely unprejudiced question, it might just exist a itsy-bitsy bit early, an early unprejudiced question that -- and I deem they mentioned in the script there that their next Investor Day, sometime in calendar 2019, we'll start to give you a feel for how they view their billings path for some of these products going forward.

Dheeraj Pandey -- Chief Executive Officer

Also, I deem one thing that we're doing, at least thinking difficult about, is organizational design. But at the End of the day, consummate the strategy, and writing code and delivering product is one thing. But organizationally, planning-wise, GM structures ,and having these GMs deem fondness CEOs, there's a lot of travail that we've actually done in the ultimate nine months, and we'll continue to gain to enact it in the next nine months to fabricate positive that they really deem of these individual products. But it's very simple to fade and converse to sales force, as I was mentioning in my script. Just converse to the sales obligate and say, why don't you just fade and sell these fresh products? But what happens is they End up basically cannibalizing the core product, and money just shifts from one pocket to the other. It's really, really simple to enact that. But to really fade and create fresh earth will consume some true organizational design. I mean, we're learning a lot of honorable lessons on what not to enact as well.

Aaron Rakers -- Wells Fargo -- Analyst

Great. And then as a follow-up, and more maybe architecturally, it seems fondness the storage market in general has got a hardy claim backdrop too. We've seen some hardy growth rates in the all-flash side, simple Storage, NetApp, etc. I'm just snoopy as to how you contemplate the architectural landscape playing out, where maybe you sit today versus where maybe an all-flash offering might sit in the equation of a data heart deployment model? And whether or not you contemplate that actually, that you're starting to compete against one another architecturally more.

Dheeraj Pandey -- Chief Executive Officer

Yeah, it's a distinguished question, by the way. And in fact, when Jason was asking about one other product, I deem I missed talking about Nutanix Files. And Files is their fastest-growing product in the history of this company, basically. Without any benevolent of specialist sales force, and they barely gain started the GM structure at Files itself. It's gonna exist a software-defined architecture, which means that in the Xi VPC, people can spin up their own filers without having to enact anything with hardware. And that is at the core of their architecture, that they gain made everything -- fondness you deem of NetApp cloud volumes, it's hardware sitting next to a data heart of Google, or Amazon, or Azure.

But what does it connote to fuse it within the data heart of these cloud providers? The only route you could enact that is if it's simple software. To build these scale-out architectures where people can spin them up with the click of a button, with no human involvement, and that's what's really gonna differentiate some of their offerings, actually, where people are not dependent on proprietary hardware, and NVRAM, and consummate sorts of hardware assists to really snare the best performance out. From day one, they gain said commodity servers, rack mount, and SSDs will serve the purpose of everything that required proprietary hardware up until now.

Aaron Rakers -- Wells Fargo -- Analyst

Thank you.

Operator

Your next question comes from Katy Huberty from Morgan Stanley.

Katy Huberty -- Morgan Stanley -- Analyst

Thank you. You hit your target around hardware runoff in the fourth quarter, and yet you beat extreme margin by 400 basis points. So, can you just talk about the contributors to that upside? And then I gain a follow-up.

Duston Williams -- Chief monetary Officer

Yeah. I deem if you glimpse at the uphold margins, there's a itsy-bitsy bit of increase there around a brace of points, probably quarter-over-quarter. The team did a nice job from a uphold perspective and the infrastructure and cost there. And then even some of their internal operations costs were a itsy-bitsy bit lower, which clearly helped too, and then there are some other things around the fringe there. But pretty much, those are the driving factors, anyway, Katy.

Katy Huberty -- Morgan Stanley -- Analyst

And you now gain 710 Global 2000 customers. Can you continue to add 30 to 40 a quarter, or is there a point where you gain so much scale and penetration that the incremental adds on a quarterly basis will leisurely down?

Dheeraj Pandey -- Chief Executive Officer

In their fiscal 2021 map, they gain kept it at 30, 35. We'll obviously exist adding more global account managers over time. There's a lot more segmentation to exist had in this business. But many of their commercial account people will really exist pulled up to become enterprise account managers. And many of the account managers -- enterprise account managers will become global account managers. So, the more focus they bring to global accounts, because maybe some of their global account managers that gain ten accounts, and probably, they should only gain four accounts. And so, I deem every year, as a office of growth and scale, we'll start to segment and we'll start to really focus on productive DODs account, and so.

Katy Huberty -- Morgan Stanley -- Analyst

Thank you.

Operator

And their ultimate question comes from Alex Kurtz from KeyBanc.

Alex Kurtz -- KeyBanc -- Analyst

Thanks. Thanks for the question. I won't gain a follow-up, so I'll just put a question to the ultimate question here. So, as you implement the fresh software licensing model, I was just wondering, given what could exist a mammoth refresh in the installed base, I was wondering what the marching orders were gonna exist to the sales obligate as far as approaching existing customers that might exist primed to sort of expand their utilize cases and buy more software. Are you gonna maybe transition them into the fresh licensing model, or leave some of those customers sort of in what they gain today and just focus on fresh workloads? I'm just sort of wondering how you're gonna navigate the installed base as you spin to this fresh model.

Dheeraj Pandey -- Chief Executive Officer

Yeah, I deem the goal is to gain them deem difficult about portability. And especially as they fade and approach up with this view of hybrid consumption, which is noiseless in early days. So, in the next 12 months, as Xi picks up, you'll contemplate us really fade and deem difficult about what is the hybrid shrink going to glimpse like, and what would favor them the most in terms of the drag-and-drop suffer between on-prem and off-prem. So, I deem it's probably a itsy-bitsy early to sing what benevolent of a model will follow. I mean, obviously, the mammoth push is to fade and disclose them that, look, portability is a honorable thing. You want portable licenses. But I deem in the next 12 months, as Xi picks up, we'll probably gain a lot more clarity as well.

Alex Kurtz -- KeyBanc -- Analyst

All right. Thanks, guys.

Operator

And that was their ultimate question. At this time, I'd fondness to thank everyone for joining us today. This marks the End of the call. You may now disconnect.

Duration: 64 minutes

Call participants:

Tonya Chin -- Vice President, Investor Relations and Corporate Communications

Dheeraj Pandey -- Chief Executive Officer

Duston Williams -- Chief monetary Officer

Andrea Nowinsky -- Piper Jaffray -- Analyst

Matt Hedberg -- RBC Capital Markets -- Analyst

Rod Hall -- Goldman Sachs -- Analyst

Mark Murphy -- J.P. Morgan -- Analyst

Jason Ader -- William Blair -- Analyst

Aaron Rakers -- Wells Fargo -- Analyst

Katy Huberty -- Morgan Stanley -- Analyst

Alex Kurtz -- KeyBanc -- Analyst

More NTNX analysis

This article is a transcript of this conference summon produced for The Motley Fool. While they strive for their silly Best, there may exist errors, omissions, or inaccuracies in this transcript. As with consummate their articles, The Motley Fool does not assume any responsibility for your utilize of this content, and they strongly encourage you to enact your own research, including listening to the summon yourself and reading the company's SEC filings. delight contemplate their Terms and Conditions for additional details, including their Obligatory Capitalized Disclaimers of Liability.

More From The Motley Fool

Motley Fool Transcription has no position in any of the stocks mentioned. The Motley Fool recommends Nutanix. The Motley Fool has a disclosure policy.


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Mike Downey (Principal Evangelist) shares his experiences with Flash, Flex and Air and discusses how they compare with Silverlight's offerrings. Hear Mike, a former glimmer evangelist for 9 years before coming to Microsoft ultimate year, discuss his determination to switch to Silverlight and what incredible projects he has already influenced with Silverlight.

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