Cloud computing company Nutanix is seeing a jump in revenue as its clients continue to embrace digital transformation.

The San Jose, Calif.-based software provider reported a 37% year-over-year increase in revenue of $1.2 billion for its fiscal fourth quarter that ended July 31. The company credits a customer base that is increasingly leaning into cloud adoption, Chief Executive Rajiv Ramaswami said during the company’s earnings call Wednesday.

“We continue to see solid demand for our Nutanix cloud platform, with businesses continuing to spend on digital transformation, modernizing their data centers and adopting hybrid multi-cloud operating models,” Ramaswami said during the call.

Clients such as $8.2 billion Long Beach, Calif.-based Farmers & Merchants Bank, for one, recently upgraded to the company’s HybridCloud, quadrupling the capacity of its existing data centers to 300 terabytes of capacity per center and increasing usable storage and memory, according to a Nutanix release.

Digitization trend

The trend of digitization-focused investments among banks jumped during the last quarter, with financial institutions including Truist Financial, TD Bank and Royal Bank of Canada each announcing increased tech spend during their Q3 earnings calls.

Meanwhile, Nutanix revealed that its hybrid platform Cloud Clusters (NC2) on the Microsoft Azure marketplace has progressed to public preview, providing the architecture to a greater number of customers than were previously able to access the technology. NC2 allows companies to run the software in existing cloud accounts, reducing the need to manage networking integration.

“We’re seeing businesses continuing to prioritize digital transformation and believe the challenging macro backdrop is providing further incentive for them to optimize the IoT and cloud spend,” Ramaswami said. “We see these dynamics as playing to the strengths of our hybrid multi-cloud platform.”

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