VMware Increases Guidance Following Strong Growth In NSX, VSAN And End User Computing


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Strong growth in software-defined storage, software-defined networking technologies and end user computing helped define a strong fiscal first quarter for VMware. The company also expects its VMware Cloud on AWS service to have a successful rollout.

The shift towards these latest offerings also helped VMware increase its guidance for all of fiscal 2018.

VMware CEO Pat Gelsinger, in response to analyst questions on the company's earnings conference call, said the overall market interest in its upcoming VMware Cloud on AWS service is strong.

[Related: VMware CEO: Strong NSX, vSAN, VxRail Growth Drives 2016, AWS Relationship Is Next]

"[We were] significantly oversubscribed for the beta slots," Gelsinger said.

VMware Cloud on AWS service availability is on-track for mid-2017, Gelsinger said. "Certainly, by VMworld [in August] we'll have a lot more to say about availability," he said.

VMware will not announce VMware Cloud on AWS pricing until availability, Gelsinger said. However, he said, pricing discussions have started with beta customers. "We feel confident we're landing well within the marketplace … [It] allows customers to move seamlessly into the cloud experience," he said.

Amazon is providing a new hardware footprint on which to run the VMware stack, with VMware managing the entire VMware experience, Gelsinger said. That experience will continue to be dynamic and scalable, he said. "That's part of what's so compelling to customers: They're not giving anything up," he said.

More information on VMware Cloud on AWS will be available as it is rolled out, he said.

VMware's vSAN software-defined storage technology is growing, with license bookings up by over 150 percent year-over-year, said Zane Rowe, VMware's CFO. The company already has over 8,000 vSAN bookings, he said.

Strength in vSAN was significantly enhanced with the April introduction of vSAN 6.6, the first to include native hyper-converged infrastructure security, Rowe said.

"We believe that we have the broadest offering in the hyper-converged market, and that vSAN outgrew the competition," he said.

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