Nutanix says some Azure cloud desktops should live on‑prem — and it can host Cisco calling apps too

April 7, 2026
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Nutanix brings AVD on‑prem

Nutanix has teamed with Microsoft to run Azure Virtual Desktop (AVD) on customers’ own metal, arguing that some “cloud” desktops are simply unusable from afar. “VDI was one of our first workloads,” CEO Rajiv Ramaswami said during the company’s .NEXT keynote, and Nutanix now says hybrid AVD — cloud control, local performance — is “going to be a game changer” for latency‑sensitive users. Microsoft already offers an on‑prem option in Azure Local, but Nutanix exec Thomas Cornely allegedly brushed that off as niche: “Azure Local is Azure Local. We do not see it being used by large enterprise customers.” Nutanix pitches itself as the partner to take AVD on‑prem at scale.

Calling Cisco

The company didn’t stop at desktops. Nutanix also announced support for Cisco’s calling applications, a move that drew spontaneous applause from the .NEXT crowd. Historically those apps ran on VMware ESXi, but it has been reported that ESXi is now harder to buy unless customers take Broadcom’s Cloud Foundation bundle — a shift that has nudged users to look for alternatives. Cisco responded by building a purpose‑built hypervisor, NFVIS‑for‑UC; it has been reported that the product turned up on price lists and sparked community gripes about a $420/month price point. A Cisco employee known as “Jarias” defended the timing and cost, saying early code publication was meant to help partners with urgent migrations and that the pricing reflects new costs to sustain UCM support.

Why this matters

So what’s at stake? Performance and control. VDI still fights “boot storms” and scale problems, and for designers, traders or any high‑end user, latency isn’t an academic concern — it’s the job. Nutanix wants those customers to keep their desktops close to the metal. Meanwhile, enterprises tired of licensing whiplash around VMware and Cisco may find Nutanix’s pitch enticing. Is this a clever positioning move, or a real fix for users who’ve been left chasing cloud promises? The applause and the forum flame‑wars suggest it’s both — and the market will decide which wins out.

Sources: The Register