Private and Public Clouds Fuel VMware (VMW) Growth
Cloud computing is killing some software companies. But in VMware's (VMW) case, private and public clouds seem to be boosting demand for the company's virtualization and IT management software. The latest proof surfaced in VMware's Q3 2013 earnings results, which were solid. Here's some analysis for the company's channel partners.
Among the highlights:
- Q3 revenues grew 14 percent to $1.29 billion.
- Net income rose 67 percent to $261 million.
- CFO Jonathan Chadwick said VMware met or exeeded all of its key goals for the quarter.
That's impressive, considering VMware and many of its rivals face multiple market inflection points — including:
- The march from virtualization to true cloud environments — both in public and private cloud settings.
- The shift toward software-defined networking (SDN), storage and servers. VMware calls that shift the software-defined data center.
At the same time, VMware must balance its vCloud Hybrid Service launch with ongoing relationships with thousands of cloud services providers (CSPs) that run the company's software.
Looking further ahead, VMware must also carefully manage its End User Computing (EUC) push, which involves the Horizon plus the newly acquired Desktone offering.
Amid all those variables, VMware's Q3 results show the company seems to be executing especially.