23 Jul 2009
Virtualisation specialist VMware has reported $33m (£20m) profits for the second quarter, a 36 per cent fall on $52m (£31.3m) in the same period last year.
Revenue for the second quarter was $450m (£271.5m), flat from the second quarter of 2008.
Services revenue, which include software maintenance and professional services, were $228m (£138m), an increase of 32 per cent.
Driven by the challenging macro-economic environment, licence revenue was $228m (£138m) – a decline of 20 per cent from last year.
"In addition to achieving solid financial results in the quarter, we were able to successfully complete the shipment of vSphere 4, to a good reception from customers," said Paul Maritz, president and chief executive officer at VMware.
"vSphere is not only the largest and most ambitious product step we have taken so far, but the release also reflected improvements in most operational aspects of our business. We now look forward to releasing complementary management and desktop virtualisation products over the remainder of the year."
Virtualization has been around for decades. IBM was the pioneer and has supported virtualized environments in mission critical applications for decades. I'd think VMWare is depoloyed in hundreds of mission critical applications as well. What is not proved is VMWare's stability and longevity. VMWare has failed to diversify adequately and is vulnerable to being surpassed by compeditors. MS HyperV, Citrix, Oracle, IBM to name a few all have virtualization solutions and are providing virtualization solutions. A couple I've mentioned are at price points that VMWare currently cannot (or does not want to) compete at. This will probably be VMWare's downfall. Without other diverse products to fall back upon to support the company it will most likely fall, regardless if it has an outstanding product. IBM's virtualization is superior to VMWare, however is not on Intel. If it were it may dominate over VMWare. MS HyperV does not have all the capabilities of VMWare, but most likely will soon, and is vastly cheaper. I've not had a chance to try Citrix's virtualization, but at the cost of FREE it will attract a lot of attention. Unless VMWare changes it's direction it will be gone faster than it believes is possible.
Posted by: Joe 22 Oct 2009
If VMWare is to restart its revenue growth engine after a flat second quarter, it will need to persuade the market that the virtualized data center is ready for prime time. That means that a growing number of major enterprises must be persuaded that their mission-critical applications are ready to run in virtualized environments and still perform at the levels needed to support their business objectives. The dynamic nature of the virtualized data center introduces a new level of contention among applications for shared hardware resources, and only when enterprises can see how this impacts the ability of applications to execute individual transactions will they get the evidence they need to make an informed decision about moving forward with major virtualization investments.
The challenge of truly understanding application performance in the virtualized data center will need to be addressed by a new generation of application performance management technology.
Posted by: Toffer Winslow, dynaTrace 03 Aug 2009
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