What Drove VMware’s Fiscal 2Q17 Results?

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Part 6
What Drove VMware’s Fiscal 2Q17 Results? PART 6 OF 20

VMware’s Hybrid Cloud and SaaS Performance in Fiscal 2Q18

Hybrid cloud and SaaS offerings contributed 9% to VMW’s revenues

Earlier in the series, we discussed VMware’s (VMW) NSX performance in fiscal 2Q18. We also discussed recent updates in NSX aimed at improving VMware’s position in the cloud space. Let’s see how VMware’s hybrid cloud and its related offerings performed in fiscal 2Q18, especially as the company is increasingly focused on the hybrid cloud.

Hybrid cloud and SaaS offerings now constitute more than 9% of VMware’s overall revenues on the back of vCloud Air Network and AirWatch SaaS. Strong adoption of vCloud Air Network, which grew 30% on a year-over-year basis, drove this increased contribution.

VMware&#8217;s Hybrid Cloud and SaaS Performance in Fiscal 2Q18

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IBM (IBM) dominates the hybrid cloud space. Looking at the increased adoption of hybrid cloud technology, Amazon entered this space in 2016. Last year, VMware entered into partnerships with both companies, which was symbiotic to all three companies in the hybrid cloud space. At its annual VMworld conference, VMware announced the availability of VMware Cloud on AWS.

Dominant presence in enterprise mobile management

During fiscal 2Q18, VMware AirWatch was dubbed a leader in the June 2017 Gartner’s Magic Quadrant for EMM (enterprise mobility management) suites. VMware AirWatch was also named as a leader in the IDC EMM MarketScape.

VMware AirWatch had an ~18.0% market share in 2017, making it a dominant player in the enterprise mobility management space.

Microsoft’s (MSFT) EMS/Intune is growing the fastest, with its market share rising to 15.1% in 2017 compared to 2.8% in 2015. On the other hand, the market share for Citrix’s (CTXS) XenMobile fell to 18.0% in 2017 from 22.3% in 2015.


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