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VMware Earnings: 5 Big Takeaways On vSphere, Dell And SaaS

From its upcoming vShpere as-a-Service offering to plans of forming new vendor partnerships across the industry as a stand-alone company, here are the five most important takeaways from VMware’s third-quarter financial earnings report Tuesday.

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Project Arctic For vSphere To Hit The Market Next Year; ‘Healthy’ Gross Margins Expected 

Last month at VMworld 2021, VMware unveiled a technology preview of Project Arctic—a new architecture for vSphere. Raghuram has described Project Arctic as basically vSphere as-a-Service that streamlines customers’ journeys to the cloud.

“Project Arctic will bring the power of cloud to customers running VMware vSphere on-premises. It will enable cloud-based management for hundreds of thousands of vSphere customers and vSphere deployments around the world,” said Raghuram.

With Project Arctic, customers will be able to benefit from life-cycle management, cloud disaster recovery and cloud burst capabilities as an extension of their vSphere deployments, said the CEO.

“We will bring Project Arctic to market next year as the next step in making our portfolio available in a subscription and SaaS form factor,” said Raghuram.

“We expect this to be a win-win solution for the customer, helping them lower their management costs and also give them capabilities that they did not have before, lower their cost of ensuring security, etc. And from a VMware perspective, it will allow us to deliver more value to these existing customers,” said Raghuram. “We expect this to be a healthy gross margin business.”

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