View all newsletters
Receive our newsletter - data, insights and analysis delivered to you

VMware’s Cloud Pivot Paying Off, as SaaS Revenue Soars

"Since Java, we've not seen a technology as important as Kubernetes"

By CBR Staff Writer

VMware’s hybrid cloud subscription and SaaS recurring revenue grew approximately 40 percent year-over-year in the past quarter, the company reported Tuesday, with the segments to “to drive much of the future growth of the business.”

The numbers came in a Q3 earnings report late Tuesday, which revealed a company in rude good health, with revenue for the third quarter of $2.46 billion, up 12 percent year-on-year, and license revenue for Q3 hitting $974 million, up 10 percent.

For the full year VMware is projecting an increase in total revenue to $10.1 billion, up 12.5 percent.

VMware Earnings: More Kubernetes, Please

The software virtualisation firm is midway through a shakeup that includes plans to make vSphere (its server virtualisation set of products) a “Kubernetes native platform” in a decisive shift by the business.

It is calling that move – essentially the re-architecture of vSphere with Kubernetes as its control plane – “Project Pacific”.

Asked about progress on the project, CEO Pat Kelsinger said: “Maybe since Java, we’ve not seen a technology as important as Kubernetes.

Read this: An Idiot’s Guide to Kubernetes

“We’ve been working on Project Pacific now for several years and we really see this ability to combine containers and VMs in a consistent operating environment gives customers… security, scalability, compliance, agility and speed from containers for a new workload development.”

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

A beta release has been oversubscribed, he said, adding “we’re looking forward to the next major version of vSphere including these capabilities.”

Customer Wins

A strong quarter include customer wins with JPMorgan Chase increasing their VMware investments, with Lenovo and also Deutsche Telecom IT service provider, T-Systems, Millicom and NTT DOCOMO named; a strong telco showing that the company said came as customers look to 5G buildout.

See also: Canonical Aims for a Bigger Bite of the Telco Pie, with New Charmed OSM Distribution

“We continue to see traction and customer momentum in support of VMware’s vision to deliver a software architecture that enables any app, on any cloud, delivered to any device,” commented Pat Gelsinger, CEO, VMware.

““We are thrilled to welcome Carbon Black to the VMware family, and we remain on track to close the acquisition of Pivotal by the end of the fiscal year.

Riffing on that acquisition to analysts on a conference call, he said: “We’re going to build security into the infrastructure, we’re going to build it into vSphere, we’re going to build it into NSX as we’ve been doing with microsegmentation, but further enhance it with Carbon Black.

“[We’re going to] build it directly into Workspace ONE and really bring security and management together into a client offering and we’re going to tie that together with an end-to-end set of cloud analytics.”

Read this: VMware: vSphere’s Going Kubernetes-Native


Topics in this article : , , ,
Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.