VMware’s ongoing reinvention

Virtualization mainstay VMware wants to build and manage multi-cloud infrastructure and so much more.

1 2 Page 2
Page 2 of 2

And at the latest VMworld conference, the company announced several new initiatives. Project Dimension is a managed service that will bring software-defined data-center infrastructure- and hardware-as-a-service to on-premises and edge locations. Project Magna is aimed at leveraging artificial intelligence and machine learning to build self-optimizing virtual infrastructures. And Project Concord is VMware’s blockchain initiative. 

But there is always a concern that if debt-laden Dell hits a few rough quarters, it might scale back new -echnology investments at VMware.

So far, however, the overall strategy seems to be working. Revenue for the latest quarter was $2.2 billion, up 14% from the same quarter of the previous year, and the company increased its full-year revenue projections to nearly $8.9 billion. Quarterly earnings of $1.56 a share beat analyst estimates. And VMware stock, which dipped to a low of around $50 a share in 2016, is now above $150 a share.

Industry analysts are impressed. Forrester listed VMware’s HCI offering as one of the leaders in the fast-growing “data center in a box” market. IDC says VMware is the market leader in cloud management software at more than $900M in annual revenue, and is the market leader a new category called IT automation and configuration management. And Gartner puts VMware in a leadership position in WAN edge technology.

Wolf, not surprisingly, is bullish on VMware’s future:

“We will be global leaders in infrastructure, networking, data management, end-user computing, and we will revolutionize how applications and data are secured. We will empower customers to take open source projects into production, providing the reliability, scalability and operational consistency they require. Finally, we expect to continue to be a major force in cloud operations and management.”

Join the Network World communities on Facebook and LinkedIn to comment on topics that are top of mind.
1 2 Page 2
Page 2 of 2
Take IDG’s 2020 IT Salary Survey: You’ll provide important data and have a chance to win $500.