VMware announces Q2 2013 earnings

On July 23 VMware announced its financial results for the second quarter of 2013.

Total revenue for the Q2 was $1.24 billion, with an increase of 11% compared to Q2 2012. Looking at the financials we can see how the annual 2013 revenue should be be of about $5.12 to 5.26 billion, and license revenues are expected to be $2.21 to 2.29 billion. Excluding revenues attributable to GoPivotal and all divestitures that occurred in 2013, this represents growth rates of 15% to 18% for total revenues and 8% to 12% for license revenues.

Recent Highlights & Strategic Announcements

  • On May 21, 2013, VMware unveiled VMware vCloud Hybrid Service, an Infrastructure as a Service (“IaaS”) cloud operated by VMware and built on the trusted foundation of VMware vSphere, giving customers a common platform to seamlessly extend their data center to the cloud.
  • On May 22, 2013, VMware and SAP AG announced a new model to deliver SAP Core Solutions and SAP HANA® in the newly announced VMware vCloud Hybrid Service. The joint offering is designed to allow customers to consume SAP solutions on VMware vCloud Hybrid Service in a true Opex model with subscription pricing for both software and infrastructure services. The joint offering is expected to deliver a fully managed subscription service offered by VMware on-premise, in the cloud or within hybrid deployments.
  • On June 10, 2013, VMware announced that NTT Communications (“NTT Com”), the cloud service provider of one of the world’s largest telecommunications companies NTT Group, will deploy VMware network virtualization as a core technology for its new cloud service, Enterprise Cloud (“EC”).  By incorporating VMware network virtualization into its EC service, NTT Com will provide seamless and flexible connectivity between customer data centers and the NTT Com cloud without changing the IP addresses of a customer’s existing, on-premise environment.
  • On June 11, 2013, VMware introduced VMware vCenter Log Insight, a new automated log management and analytics product for the Cloud Era. By extending analytics to logs, VMware enables IT organizations to gain real-time insights from vast amounts of log data generated by applications, physical hardware and virtualized infrastructure, helping to minimize troubleshooting times as well as improve operational efficiency and reduce IT costs.
  • In May and June of 2013, VMware made announcements regarding VMware vSphere integration with Apache Hadoop.  MapR Technologies, Inc. and VMware announced that MapR’s Distribution for Apache Hadoop is now certified for VMware vSphere. In addition, Cloudera and VMware announced that Cloudera Enterprise is now certified to run on vSphere. Through the VMware Ready program, VMware and Cloudera completed a detailed joint validation process, which enables enterprises to simplify and accelerate the use of Apache Hadoop within virtual and cloud environments.

Pat Gelsinger, chief executive officer, VMware, said:

The second quarter was a strong finish to a solid first half of 2013 for VMware, we see a significant market opportunity in the second half of 2013 and beyond. VMware continues to succeed because we are uniquely positioned to help customers move from the client-server era to the mobile-cloud era of computing. As we help them bridge to this new world, we’re empowering businesses to capture new levels of efficiency, control and agility.