Cloud Computing and Virtualization Boost VMware Q1 Revenues
VMware continues to ride the virtualization and cloud computing waves. Indeed, the company’s Q1 2011 revenues hit $844 million, up a healthy 33 percent from Q1 2010. A closer look at the numbers shows VMware extending its reach across the globe, with an assist from VARs and cloud service providers (CSPs).
While VMware’s US revenues grew 26% to $400 million in Q1, international business surged 40% to $444 million during the quarter. In a prepared statement, VMware CEO Paul Maritz was quick to pump cloud computing: “The quarter’s strong performance underscores the value that VMware is providing customers on their journey to cloud computing. Customers continue to invest in our portfolio of virtualization and cloud infrastructure solutions to remove complexity and enable IT as a Service.”
Bottom line: VMware is counting on their cloud investments — especially in the channel — to drive revenues higher. VMware CFO Mark Peek predicts the company will generate $3.55 billion to $3.65 billion in revenue for the year, up 24% to 28% compared to 2010. Meanwhile, VMware’s stock is trading around a 52-week high.
Still, virtualization rivals like Citrix Systems, Microsoft Hyper-V and Red Hat Enterprise Virtualization are giving chase. TalkinCloud will be watching to see if anyone gains ground on VMware.
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