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Cloud fuels VMware growth forecasts

Simon Quicke

Decent levels of public sector business and a pick up in the volume of enterprise sales fueled by customer moves to the cloud were highlighted as reasons why VMware is confident that 2013 is going to end with a solid second half.

The virtualisation giant has gone through a rough spell last year, being forced to reduce headcount to the tune of 900 jobs, as IT spending slowed. But it appears to have shrugged off those problems with the latest second quarter numbers sign posting better times to come.

Revenues for the second quarter were $1.24 billion, an increase of 11% from the same period the year before and net income was up to $244m from $192m in 2012.

Pat Gelsinger, CEO at VMware, said that the market conditions were improving and there were emerging customer opportunities in the second half as more customers looked to make a move into the cloud.

"Our continuing goal is to power people and organizations by radically simplifying IT through virtualization software. We intend to realize that goal by focusing on a combined $50bn addressable market opportunity across three strategic growth priorities; software defined data center, hybrid cloud, and end user computing. In Q2, our products that extend the portfolio beyond stand-alone vSphere represented more than 35% of license bookings," he said.

He also crediterd its efforts to become closer to cloud providers as one of the reasons it had seen a strong quarter: "Our VMware service provider program once again tracked well in the quarter as public cloud providers continued to leverage our cloud infrastructure program for their service delivery. As we've stated previously, we believe this ecosystem of providers is second only to Amazon and public cloud market share in this program is one of the fastest growing parts of our business with bookings growth once again of over 100% year-over-year."


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