Editor’s note: Widespread growth across segments highlights VMware’s timely portfolio and go-to-market enhancements, says Technology Business Research Analyst Cassandra Mooshian after reviewing the tech firm’s latest financials.
HAMPTON, N.H. – Momentum in hybrid cloud and SaaS continues to benefit VMware’s top-line as its latest financial report last week showed.
VMware posted strong results in 2Q17, growing top-line revenue 12.2% year-to-year to $1.9 billion, with license growth of 13.7% year-to-year.
Quarterly results displayed progress across VMware’s portfolio of products and services, particularly in key growth areas such as hybrid cloud and SaaS, which together now comprise 9% of total revenue.
We expect the availability of VMware Cloud on AWS in 2H17 and its longstanding and expanding partnership with IBM to continue to grow hybrid cloud and SaaS as a portion of total revenue.
The company noted signing its first deal of over $100 million with DXC Technology and cited that NSX and EUC were both included in each of the top ten deals made during the quarter, helping drive over 40% growth in NSX license bookings and over 20% growth in EUC license bookings, both from the year-ago quarter.
Additionally, VMware reported double digit year-to-year growth in total cloud management bookings, with cloud management license bookings up mid-single digits over the same compare.
We expect continued progress in the segment as well as updates to its vRealize Cloud Management Platform in June to allow for growth acceleration in segment bookings in coming quarters, particularly as enterprise demand emerges for management suites and platforms to help with their hybrid environments.
(C) TBR
