VMware Q2 2011 Earnings Increase 37 Percent Over Q2 2010
Virtualization provider and Talkin’ Cloud Stock Index member VMware is seeing its cloud investments pay off as the company was able to report a 37 percent year-over-year boost in earnings for the second quarter of 2011 – that’s $921 million, for those keeping track at home.
The company’s press release has the financial nitty-gritty. But here are a few standout statistics from that statement:
- U.S. revenues for Q2 2011 grew 35 percent to $450 million from Q2 2010
- License revenues for Q2 2011 were $465 million, an increase of 44 percent from the Q2 2010 as reported and an increase of 40 percent measured in constant currency
- Service revenues, which include software maintenance and professional services, came in at $456 million, an increase of 30 percent from Q2 2010
For the year, VMware is expecting annual revenues to be between $3.65 billion and $3.75 billion, which hovers around a 30 percent boost from 2010. That’s in spite of an expected slight drop in third-quarter revenues.
So what does VMware credit with its success? Well, despite the company’s investment in desktop virtualization, it’s the VMware vFabric 5 cloud and virtualization application platform, HP cloud partnerships and vSphere 5 cloud infrastructure solution unveiling that got all the ink. And that’s not to mention the hype VMware had for its recent SaaS acquisitions including presentation tool Sliderocket and IT management platform Shavlik.
Strong figures, to be sure — it’s going to be an interesting Talkin’ Cloud Stock Index this week. But VMware is facing stiff competition from the likes of Citrix, which recently acquired Cloud.com and its CloudStack platform to compete on the cloud infrastructure layer.