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VMware Grows as AWS Service Set to Ramp Up

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VMware reported its first quarter fiscal 2018 financial results on June 1, showing continued growth and optimism as new services are set to debut later in the year.

For the quarter, VMware reported revenue of $1.74 billion for a nine percent year-over-year gain. Net income was reported at $232 million, up from VMware$161 million in the first quarter of fiscal 2017.

On VMware’s earnings call with financial analysts, CEO Pat Gelsinger emphasized that his company is headed in the right direction.

“From the macro sense we feel good,” Gelsinger said. “The idea of digital transformation is, we believe ushering in a broadening of the role of technology.”

“So I believe that this is overall a period of accelerating growth for technology companies broadly,” Gelsinger added. “And I think companies that are well-positioned for that are going to benefit by a good tailwind of tech growth in a broader sense.”

From VMware’s perspective, he noted that it is his belief that the company’s software-driven offerings are well positioned to benefit from many of the macro technology trends.


Among the big new services that VMware is currently building is one with Amazon Web Services (AWS) that will enable existing users to more easily make use of the cloud.

Gelsinger explained that the way the service is built, it’s basically a new hardware footprint that Amazon is making available to run the full VMware cloud service on.

“There’s no hypervisor underneath the VMware stack, we are the full stack all the way to the hardware level,” Gelsinger said. “That gives us compatibility, that gives us performance and the absolute ability to have the complete VMware experience.”

In Gelsinger’s view, what will make the upcoming VMware AWS service compelling is that it’s a familiar experience for existing vCenter virtual server administrators.

“If they can run the vCenter, I think the most widely deployed management tool in the history of computing, they can now take advantage of this service in a seamless way,” Gelsinger said. “So we think we’re well aligned on what customer needs are with the way the services stand up.”

Sean Michael Kerner is a senior editor at ServerWatch and Follow him on Twitter @TechJournalist.

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