VMware CEO: Increased 90% confidence in server virtualization

Mware is one of the first major providers of server virtualization and cloud computing services. These services will bring a huge return to VMware in 2012.

VMware released its fourth quarter quarterly report in Monday and its financial position for the year 2012. In the fourth quarter, VMware's revenue was 1.29 billion U.S. dollars, up 22% year-on-year.

VMware's annual revenue grew by 22% to $4.61 billion. The net income for the quarter was $206 million trillion, with a net income of $746 million for the year 2012.

VMware forecasts a 2013 annual revenue of 5.23 billion to 5.35 billion dollars, up 14% to 16% per cent compared with 2012.

On VMware's financial reporting conference call, CEO Patte Kissing was asked about his growth expectations for server virtualization workloads. The virtual workload is estimated to grow 50% to 60%, Kissinger said. "We expect this data to continue to grow and we have confidence to grow to 90%." So even at the core of virtualization, we have a lot to do. ”

Kissinger sees the virtualization of core servers as a springboard for VMware software-defined data centers (SDDC). The idea of a software-defined data center was first presented by VMware's chief technology officer, Steve Herod, in May 2012. This vision includes

Core servers, networking, storage, and cloud computing technologies, all of which are extracted from the underlying hardware.

"We see a huge market opportunity in 2013 and in the future, and we focus on the role of--vmware, the pioneer of virtualization technology that our customers value most, simplifying the infrastructure from the data center to the virtual workspace," Kissinger said. ”

From a product point of view, the VMware Vcloud Suite was marketed in the fourth quarter of 2012.

Carl Eisenbach, president and chief operating officer of VMware, said in a conference call that the Vcloud Suite integrates VMware's leading virtualization, availability, networking, security, and management portfolio into a single SKU, simplifying the process of customer adoption of cloud technology.

The Vcloud suite benefits from VMware's acquisition of Dynamicops technology. Dynamicops's technology was applied to the "Vcloud Automation Center version 5.1", which was released last October.

Aschenbach said VMware purchased six companies in 2012, including ITHC, Cetas, Wanova, dynamicops, pattern Insight and Nicira. Looking to 2013,vmware is likely to continue to buy more companies.

Mr Kissinger said VMware would continue mergers and acquisitions to focus on supporting the development of software-defined data centers, hybrid clouds, and end-user computing. "Our goal is to become the largest infrastructure software company in this century, with a total revenue of more than 10 billion dollars. Provide customers with the flexibility, efficiency, and choice of software innovation, and simplify all technology related to infrastructure and it. ”

Layoffs

While VMware is expanding its business, it is also working to improve operational efficiency. VMware plans to cut 900 jobs as part of the optimization.

Jonathan Chadwick, chief financial officer and executive vice president of VMware, said in a conference call that these jobs would be temporarily canceled, some to streamline business, and some to target products. While VMware is announcing layoffs, Chadwick insists the overall trend has been positive in recent years.

"It needs to be clear that VMware has added more than 6700 employees in the past three years," Chadwick said. Although layoffs are a tough decision, we know it is good for businesses and an important step towards our long-term plan. ”

(Responsible editor: The good of the Legacy)