ServersVMware Sees Continued Growth Opportunity in the Cloud

VMware Sees Continued Growth Opportunity in the Cloud

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Demand for virtualization and cloud technologies continues to grow, which in turn is fueling growth for VMware.

VMware reported its first quarter fiscal 2014 earnings late Tuesday with revenue reported at $1.36 billion, for a 14 percent year-over-year gain. Net Income for the quarter was reported at $199 million or $0.46 per share.

“As we talk to customers, one thing is becoming clear, they not only see the value of the software-defined data center, they increasingly believe that this approach will become the model for leading data centers in the world,” VMware CEO, Pat Gelsinger said during his company’s earnings call.

There are a number of drivers in play for growth at VMware, with the cloud playing a leading role. Carl Eschenbach, President and Chief Operating Officer at VMware, noted during the call that over the course of the last year, there has been significant growth in the number of VMware partners now selling management solutions.

“With cloud management penetrated into just over 10 percent of our installed based, we still see plenty of room to grow,” Eschenbach said.

Eschenbach added that VMware’s Hybrid Cloud business grew by over 100 percent year-over-year including the VMware service provider program (VSPP) and the vCloud Hybrid Service (VCHS) offerings. The vCHS originally launched in May of 2013 as a way to help organizations bridge the gap between on-premises VMware deployments and the cloud. Last week, VMware extended the service with a new Disaster Recovery capability for enterprises.

Windows XP

VMware is also moving forward on its End User Computing (EUC) efforts, which include Virtual Desktop Infrastructure (VDI) and Desktop-as-a-Service (DaaS).

“Overall, there is a broad interest on the part of customers to move past managing the break-fix patch of desktops,” Gelsinger said. “Windows XP and the end of support has just accelerated that set of conversations with customers overall, and we do think that is one of the accelerants to the EUC business for us, and we expect that to become more of a discussion, as we go through the year.”

VMware is also seeing some momentum for its NSX network virtualization platform. NSX debuted in August of 2013 as a way for organizations to virtualize their networks the same way they have been able to virtualize servers.

“Overall, the software-defined data center vision resonates with customers and they get it very, very quickly,” Gelsinger said. “Networking and NSX is the delivery vehicle for that next-leg of the software-defined data center.”

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

Photo courtesy of Shutterstock.

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