VMware Rides vCloud Enterprise Licensing Deals To Solid Q2


As it shifts focus beyond the hypervisor, VMware has been building up its portfolio of virtualization and cloud management tools, with products like vCenter Operations Management suite and vCloud Automation Center.

VMware's bundle of vSphere with Operations Management (vSOM) sold at 1.3 times the average sales price of the standalone version of vSphere, VMware's Eschenbach said on the call.

"Our strategy to strengthen the channel and broadly see the market with our management products is off to a good start," Eschenbach said, according to Seeking Alpha's transcript of the event.

End user computing is another pillar of VMware's business, and Eschenbach said license booking for these products, which are also sold as a bundle through the Horizon Suite, "were up in the mid-teens" compared to last year's quarter, Eschenbach said.

Jamie Shepard, regional vice president North America for Lumenate, a Dallas-based VMware partner, is seeing growth in VDI and Horizon Suite, as well as customers using VMware as a "portal" -- or service-oriented catalog -- for private clouds.

"We just built out a whole applications-focused-only team that is driving a lot of VDI adoption," Shepard told CRN.

For its upcoming third quarter, VMware is expecting revenue of $1.27 billion to $1.3 billion, while Wall Street is expecting $1.29 billion.

For its 2013 fiscal year, VMware is expecting revenue of $5.12 billion to $5.26 billion, a slight bump up from its previous forecast of $5.12 billion to $5.24 billion.

PUBLISHED JULY 24, 2013