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During the question and answer period following the conference call with analysts to discuss the third-quarter financials, VMware's Eschenbach said that VMware's ending of its short-lived vRAM licensing scheme and returning to its previous CPU-based licensing model was welcomed by both channel partners and customers.
Channel partners said the reinstatement of the CPU-based licensing model removed a big sales barrier in the third and fourth quarters of 2012, while customers prefer the CPU-based model because of the simplification versus the vRAM model, he said.
When asked about the potential threat to VMware by the expected release of System Center 2012 by rival Microsoft, Eschenbach dismissed any concerns by saying that it has yet to reach the market and that the global economic environment is the main factor going forward.
"While Microsoft is coming to market with a new platform, it should be called out that this is the third time in seven years that Microsoft has come to market with a 'good enough' product," he said.
Looking forward, Eschenbach expects VMware's fourth quarter 2012 revenue of between $1.26 billion and $1.29 billion, or up between 19 percent and 22 percent over the fourth quarter of 2011. That includes a 14-percent to 18-percent rise in license revenue to between $587 million and $605 million.
For all of 2012, VMware is maintaining the midpoint of its previous guidance by calling for total revenue of $4.572 billion to $4.602 billion, or up between 21.4 percent and 22.2 percent over 2011, Eschenbach said. Licensing revenue for 2012 is expected to be up from 12.8 percent to 13.8 percent over 2011 because of a seasonably strong fourth quarter, he said.
PUBLISHED OCT. 23, 2012
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