VMware Grows as Cloud Services Market Set to Mature

Grazed from ServerWatch. Author: Sean Michael Kerner.

VMware, more than perhaps any other vendor, has helped enterprises around the world embrace server virtualization. In 2013, VMware’s efforts paid off as the company reported strong revenues as it gears up for the cloud-computing future. VMware reported fourth quarter fiscal 2013 revenue of $1.48 billion, which is a 15 percent year-over-year gain. Cloud Computing and VMwareNet income for the quarter was reported at $335 million. For the full fiscal 2013 year, VMware revenue came in at $5.21 billion, for a 13 percent gain over 2012, with net income reported at $1.01 billion.

Looking forward, VMware provided first quarter fiscal 2014 guidance for revenue in the range of $1.33 billion and $1.37 billion, representing a gain of 12 to 15 percent year-over-year. For the the full fiscal 2014 year, VMware’s guidance is for revenue in the range of $5.94 billion and $6.1 billion, for a gain of 14 to 17 percent year over year…

While the market for server virtualization is relatively mature, growth for VMware in 2014 will come from its management and automation products. "Even with the success of our management and automation products thus far, we believe our customer base is only 10 percent penetrated, reflecting ample runway for growth," Carl Eschenbach, President and Chief Operating Officer at VMware, said during the company’s earnings call. "We continue to believe that the path to the software-defined data center goes through management and automation, and this will continue to be a key driver of our growth in 2014 and beyond."…

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