See VMware Real grades from the 10-k financial report

The U.S. Securities and Exchange Commission (SEC) has released the VMware form 10-k file, and each listed company needs to describe in detail the various aspects of the operating situation in this unreserved financial statement document. " As a result of the annual report of the careful resignation, Form 10-k is obviously more flat, and therefore can bring us more credible business results.

Discover the secrets of VMware CEO's deep inside

So what did VMware write in this 10-k document?

The most interesting part comes from the "Risk Factor" episode, where the virtual giant points out, "as the market is well-known for the virtual product of our computing machine, we have started to develop and sell the cloud solution as the main vehicle delivery, information technology (" IT ") infrastructure management and automation, platform, and service. * * * *. If our cloud computing solution is not procured to attract business customers by competitive advantage, then our gains and profits are likely to fall in the right way. 」

10-k is a very conservative document, and this is to avoid boasting about the potential risks that the investor can not understand. As a result, VMware's final "income growth and profit potential to fall" is entirely predictable. In addition, VMware also mentions in the next section that the demand for virtualized products is falling in the same way that it is possible to move the business foundation of the virtual giant.

The company thinks that this product "and related changes and upgrades will continue to be the source of our main revenue in the future." "But the next step in the statement is to make makes, the effect is" because our vsphere related products mature, so the company's future income growth is more and more dependent on the new products and new technology solutions brought to the extra. "". " 」

These new products also incur new risks at the same time as the collection.

"Part of our new project is managed by third-party partners that we have no control over, however, failure, service breakdown, or other errors and irregularities may require the company to provide credit support, including refunds, Sue compensated, or loss of customer or third parties, as described in the document. "Any service that is managed by a third party but that points to our financial reporting facility may also be subject to risk during the transition period." Once these services customers are in the middle of an outage, failure, security breach, loss of use, or other mass problem, we may be asked to request Sue. 」

As for the hybrid cloud, VMware has made such a decision after the truth of the review: The success of "vcloud hybrid services will depend on the global reach of the product and the establishment of a successful market-based strategy. We need to build a sales professional knowledge system with these new products and build a foundation for supporting it. 」

In the file, the virtual giant also acknowledges that "we are getting more and more serious about the development and marketing of IT management and automation as well as IaaS (including the Software definition network and Vcloud Hybrid services). This type of product suite requires customers to have a full-featured, well-matched market marketing and sales approach to the IT system, which is a big match for the way a condom sells its products in the past. 」

This document also points out that VMware's chosen target market is fiercely competitive. "We witnessed the white-hot state of the market in 2013 and predicted that this would continue in 2014," the paper writes. ". "For example, micro-software continues to incrementally change its virtual base and virtual management products, and plans to launch an updated version of its Hyper v virtualization product. "The document also says that Oracle is another competing opponent who needs to be concerned--for the simple reason that some customers will see Oracle's free virtualization technology as a positive threat to the VMware product."

The document also suggests that VMware might need to re-tune the licensing system, a problem that has brought a lot of trouble to the company over the past. Below we refer directly to the content of this topic in the 16th page of the 10-k file:

"With the continual improvement in the performance of our hardware and processors, we have to adjust our products and services to give them a full performance advantage." For example, the more powerful the server is, the more we have the opportunity to bring a better product to our customers, however, the increasing number of server processor cores also makes it possible for terminal user to run more virtual machines on each server using the same number of devices, which can be reduced by the change in the sales performance. If we do not make adequate adjustments to the new technology development trend for solutions and products, it is likely that the company's ability to maintain or increase the number of virtual software market share and collection will suffer significant negative impacts. 」

This document also mentions a fact: some VMware products are or are using a series of open source codes based on a number of possible systems. The document specifically mentions Nicira, which is because its flagship product contains some of the Open software, which in turn leads to long-term discussions about the risks involved.

The document describes the relationship between VMware and EMC in a wonderful way, that is, "EMC and we are all part of the IT infrastructure, offering products and services related to storage management, provisioning, disaster recovery, security, system Management and automation, configuration, and resource management.". " To be sure, EMC is not going to have a positive or dramatic conflict with us. In addition, our knowledge and understanding of EMC has made it possible to use our source code and knowledge rights, but to limit its ability to develop a solution that is competitive with some of our products. "." 」

EMC created the Vipr,vmware to launch Vsan, and both companies said there was no intersection between the two--and that seemed like a ironic thorn in the 10-k file.

The good news is, of course, a lot. The company shows how it can be more than the standard Pur index for all software maker stocks. Currently, the virtual giant has nearly 44 dollars in the fund. Another good news is that the company may be able to recommend "... 2011, 2012, and 2013 in the total sales of the score of 26%, 27% and 35%,"This number is true, it proves that more and more customers have started to join the signing team Wu Chung.

With the entire 10-k document, we can almost identify the company CEO Pat Gelsinger is basically able to sleep worries. It's obvious that VMware is clearly aware of the intense battles that have been made, especially on the road to the hybrid cloud market.

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See VMware Real grades from the 10-k financial report