VMware smashes Q2 with record revenues nearing US$1bn

20 Jul 2011

Virtualisation powerhouse VMware reported profits of US$220m on second-quarter revenues of US$921m, up 37pc on last year. The company triumphantly declared the continued adoption of virtualisation is driving its success.

“The quarter’s strong performance reflects the continued adoption of virtualisation as a key technology for the next era of computing,” said Paul Maritz, chief executive officer.

“VMware will continue to help customers accelerate towards more efficiency, flexibility and automation with VMware vSphere 5 and the cloud infrastructure suite.”

US revenues for the second quarter of 2011 grew 35pc to US$450m from the second quarter of 2010. International revenues grew 38pc to US$471m from the second quarter of 2010.

License revenues for the second quarter of 2011 were US$465m, an increase of 44pc from the second quarter of 2010 as reported, and an increase of 40pc measured in constant currency.

Service revenues, which include software maintenance and professional services, were US$456m for the second quarter of 2011, an increase of 30pc from the second quarter of 2010. 

“VMware’s second-quarter results were driven by strength across geographies and record enterprise licence agreement bookings as a percentage of total bookings,” said Mark Peek, chief financial officer.

“Third-quarter 2011 revenues are expected to be in the range of US$915m and US$940m, a year-over-year increase of 28pc to 32pc. The third-quarter non-GAAP operating margin is expected to decline sequentially by 260 to 360 basis points. For the year, we expect annual revenues to be in the range of US$3.65bn and US$3.75bn, an increase of 28pc to 31pc compared to 2010.

Cloud infrastructure rollout gains pace

In June 2011, VMware announced vFabric 5, an integrated application platform for virtual and cloud environments. vFabric 5 will provide the core application platform for building, deploying and running modern applications by combining VMware’s Spring development framework for Java and the latest generation of vFabric application services. vFabric 5 is expected to be generally available in late summer 2011.

In June 2011, VMware announced a new collaboration with HP on turnkey solutions to simplify and accelerate virtualisation for customers on the journey to cloud computing. The new HP VirtualSystem solutions will be integrated, pre-tested IT infrastructure stacks that will help improve business agility, lower costs and enable cloud computing for enterprise customers of all sizes.

In July 2011, VMware announced vSphere 5 and a comprehensive suite of cloud infrastructure technologies.

With nearly 200 new and enhanced capabilities, vSphere 5 is expected to set the standard in virtualisation, delivering better application performance and availability for all business-critical applications while automating the management of all data centre resources.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years