VMware Earnings: Any Impact From Microsoft Hyper-V?
VMware (NYSE: VMW) Q2 2012 financial results beat Wall Street’s expectations, and the virtualization company’s sales pipeline sounds strong ahead of the big VMworld conference in August. But Investors Business Daily believes VMware’s Q3 forecast is slightly below expectations. Is Microsoft Hyper-V putting competitive pressure on VMware? Hmmm…
First, let’s keep VMware’s results in proper perspective. The company remains dominant in the virtualization market. Q2 2012 revenues rose 22 percent to $1.12 billion, operating income rose 13 percent to $212 million, and Q3 2012 revenues are expected to be in the range of $1.11 and $1.15 billion, the company said. Plus, VMware is buying Nicira to push into network virtualization and software-defined networking (SDN).
Looking ahead, VMware’s CEO title will shift from Paul Maritz to Pat Gelsinger on September 1. What’s behind the change? VMware says it’s a normal, well-planned transition. But some conspiracy theorists wonder if VMware is growing concerned about Microsoft Hyper-V.
Indeed, Microsoft’s hypervisor will receive a major upgrade when Windows Server 2012 arrives in September 2012. The VAR Guy has spoken with one Hyper-V channel partner that is betting his business on Microsoft’s virtualization strategy, migrating customers away from VMware (more details on that soon).
In recent weeks, Microsoft Hyper-V had been claiming market share gains, but it sounds like VMware isn’t bowing to Microsoft in the market. The VAR Guy expects plenty of updates — and perhaps some competitive fireworks — during VMworld in August.