Cloud computing drags VMware growth into a huge investment

It is said that cloud computing is the future trend, in fact, things are not so absolute, VMware is a special case, due to the weak cloud computing applications, VMware in the cloud of the big investment in the water drift, in the third quarter of VMware has just released the results we may see more clearly, VMware's third-quarter revenue grew 20%, with revenue growth of nearly 22%, representing total revenue from last year's 3.8 billion dollars to nearly 45 and 4.6 billion dollars this year. As the VMware co-CEO Carl Eschenbach says, this should be a good thing for an enterprise software company facing a slump.

But VMware's net profit for the first 9 months of the year grew from 524 million to 540 million, growing 3%, which means that some revenue from 20% of revenue has been eroded.

Global server integration trend is still the same momentum, is the main cause of VMware growth. Also because of this, VMware outside the United States revenue has reached 580 million U.S. dollars, surpassing the U.S. local 554 million U.S. dollars.

VMware's goal at home and abroad is the two fastest growing areas in the software market: Data Center Virtualization and cloud computing. VMware does not segment revenue by product line and therefore cannot determine the contribution ratio.

Eschenbach points out that both markets are driven by the economic downturn. Consolidating servers through virtualization is a panacea if you need to improve efficiency in your data center; If you want to drive new projects without increasing it capital, cloud computing is the answer. The slump is both a good partner for VMware and a good indicator of the company's progress.

But if both are doing well, should VMware revenue not grow 32% as it did last year? How about the third quarter growth of 20% or year 21% to 22%? VMware has aspired to hegemony in data center virtualization and has done so.

Similarly, VMware uses virtualized data centers as a starting point to dominate cloud computing, and the only weaker is cloud products. For example, partner, vice president of Cloud Marvell, who helped large enterprises into the clouds, Treadway recently wrote: VMware's Vcloud Suite Foundation (workload Appointment and management products) Vcloud Director, Not much used between businesses. Of course, many people use it, but not as much as VMware expects.

This may just be a start, but it's also possible that customers feel timid about the next step: from the data center in ESX server to the private cloud built by VMware products, which is connected to the public cloud created by VMware products.

In fact, cloud products are also gradually out of other options, of which 3 are open source software, respectively, with the Amazon compatible with the Eucalyptus Bae, Citrix released Cloudstack, as well as the support of the OpenStack, The function face directly challenges the unified platform of many operators.

The OpenStack project is particularly popular with VMware users and supports VMware ESX Server and KVM. As a VMware competitor, OpenStack is better suited as a transformation platform for virtualized data centers and public clouds. While it may not be appropriate for customers OpenStack to import private cloud, VMware is absolutely supported in public and private cloud.

VMware has a brilliant customer list in the public cloud service, from Bluelock, CSC, Dell, Colt, Singapore Telecom and Software Bank, is already the giant in the cloud market, but analysts predict that the cloud market is just beginning, and other corporate customers around the world do not necessarily use VMware.

Amazon's EC2, Microsoft Azure, and Google Compute engine are much larger than the private cloud of a common enterprise, and they can also Rob VMware vcloud. While the Vcloud suite provides a higher degree of operational automation, user provisioning and resilient expansion and reduction, the company will consider the benefits of long-term low costs when it comes to the cloud.

Innovation is the key of winning; Compared to VMware vcloud Director (VCD) and OpenStack, at least treadway that the VCD has been the development process is too lengthy and lack of innovation. And he also believes that VMware announced last month the application support OpenStack, showing VMware believes that the product is compatible with open source code is the long-term, but also to support the next revenue 21% to 22% growth.

(Responsible editor: Schpeppen)