VMware's 2Q Results Show Upticks In NSX, Mobile Management Adoption

...

Join All Analytics Radio to learn about the use of analytics in presidential campaigns. What you l

VMware reported solid results for its second quarter, with upticks in licenses, virtualized workspaces, mobility management, and NSX networking.

VMware announced results that saw company revenues grow $1.69 billion in the second financial quarter of 2016, an increase of 11% over revenues for the same quarter last year.

License revenues increased to $644 million, a 1% tick upward over the licenses in the second quarter of last year, according to VMware's July 18 announcement (PDF) of its results. The quarter closed on June 30.

Net income for the quarter was $265 million, or $0.62 per share, compared to $175 million, or $0.40 per share, last year. By the measure of non-GAAP accounting, earnings per share were $0.97.

That result was $0.02 higher than anticipated by the consensus of analysts on Wall Street, which projected revenues coming in $10 million lower than they did, according to the investor website Seeking Alpha.

Cash and short-term investments amounted to $8.67 billion as of June 30.

During the earnings call, CEO Pat Gelsinger said the quarter yielded "good overall results" with "good momentum for our newer growth businesses and in the cloud."

Gelsinger said license bookings for its NSX software-defined networking product doubled to bring the total number of customers to 1,700. NSX is a key product for VMware as a building block of the software-defined data center. If VMware can convince customers to go with its form of network virtualization, they'll be more likely to stick for the long term with its server and storage virtualization as well.

Gelsinger said regions outside North America were the star performers in the recently closed quarter. "Asia-Pacific performed particularly well, followed by EMEA and the Americas," Gelsinger said, according to the transcript.

The lines of business where VMware is growing revenues through its cloud service include its virtualized workspaces-as-a-service, Workspace ONE, based on its updated VMware AirWatch 8.4, and VMware Identity Manager, which delivers an identity-defined managed workspace.

Workspace ONE can be used as a substitute for on-premises desktop virtualization, which many customers have found complex to execute. It offers use endpoint security, TrustPoint, powered by the Emeryville endpoint security software supplier Tanium.

VMware continues to expand its Mobility Management customers. VMware was named a leader in the Gartner Magic Quadrant for Enterprise Mobility Management in June for a sixth year. It emerged with a leadership position as it also occupied the spot indicating the highest ability to execute and the furthest in completeness of vision. It was the first time VMware has occupied the leading position on both axes of the quadrant.

VMware officials also pointed that IDC has ranked AirWatch, its mobility management suite, as the largest enterprise mobility management product in marketshare. It's the second year it's held that distinction.

Gelsinger said VMware is seeing customer interest in its container host Linux, Photon, and its virtual machine-container integration software, vSphere. VMware offers the Pivotal Cloud Foundry development and container management platform, along with its VMware Integrated OpenStack. Customers can use the combination to implement more cloud-like operations in the enterprise data center or launch a private cloud behind their own firewall.

VMware has hired Dirk Hohndel as its chief open source officer. Hohndel has been a longtime leader in the open source community, Gelsinger said.

It's added Mike Wookey as CTO and vice president of the cloud management business unit. He was previously the chief architect and vice president of the enterprise management group at Oracle.

Categories
APPLICATIONS
0 Comment

Leave a Reply

Captcha image


RELATED BY

  • 5300c769af79e

    Download Apps For Free: Role Playing

    Here are 5 games for you to download and try them out!This game is sure to be a hit with the kids especially with the awesome graphics they have in store.
  • 5300c769af79e

    iOS 10 May Include Standalone HomeKit App

    The smart home market place is expected to grow and Apple is looking for a piece of this emerging market.With the home automation and Internet of Things (IoT) markets continuing to make inroads with consumers, Apple may be gearing up to release a standalone HomeKit app with the release of iOS 10 later this year.
  • 5300c769af79e

    LG Tribute 5 (Boost Mobile)

    99 LG Tribute 5 (full retail price) is one of many entry-level smartphones you can get on Boost Mobile.Compare Similar ProductsCompare LG Tribute 2 (Boost Mobile) %displayPrice% Motorola Moto E (2015, Boost Mobile) %displayPrice% LG Volt 2 (Boost Mobile) %displayPrice% Motorola Moto G (2015, Unlocked) %displayPrice% Google Nexus 5X (Unlocked) %displayPrice% Design, Display, and FeaturesThe Tribute 5 looks sleeker than your standard affordable phone.
  • 5300c769af79e

    DEAL: Buy Unlocked US Galaxy S7 From Best Buy, Get a $75 Gift Card

    Should you have managed to hold off on buying the newly released US unlocked Galaxy S7 when it initially went live yesterday and are ready to pull the trigger today on payday, just hours before we step into a holiday weekend, we’ve got a decent deal for you.Best Buy is one of the few retailers in the US who has them in-stock, ready for pickup, so if you are considering buying from them, how does an additional $75 gift card with purchase sound?