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How VMware’s New Offerings Helped Its Fiscal 3Q16 Results



VMware’s new offerings in the networking space

VMware (VMW) has been in the news due to its recently announced partnership with Amazon (AMZN), the undisputable leader in the cloud space. VMware’s recent fiscal 3Q16 earnings further contributed to the positive momentum for the stock.

Its new offerings—NSX, VSAN, and VxRail software—in the networking space continued to gain traction in fiscal 3Q16.

NSX, a part of VMware’s SDDC (Software-Defined Data Center) architecture, is a virtual networking and security software platform. Its customer base rose more than 100.0% on a YoY (year-over-year) basis to reach 1,900 in 3Q16.

VMWare’s offerings in the HCI (hyper-converged infrastructure) space include VSAN and VxRail software. Its hyper-converged software license bookings rose 150.0% on a YoY basis. VSAN is preferred by companies that want to keep their computing and storage in one box.

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VMware’s hybrid cloud offerings continued their double-digit growth

VMware’s Hybrid Cloud and SaaS (Software-as-a-Service) offerings on the back of vCloud Air Network, AirWatch as a Service, and vCloud Air rose by double digits YoY with contributions continuing to remain at 8.0% of overall revenue in 3Q16. License bookings for vCloud Air Network rose 35.0% on a YoY basis in 3Q16.

VMware said its vCloud Air Network partners have shown interest in VMware Cloud Foundation. VMware Cloud Foundation, a part of VMware’s Cross-Cloud Architecture, is an integrated SDDC platform that combines computing, network, and virtualization and storage technologies.

Continuing with its focus to scale further into the public cloud space, VMware highlighted its partnerships with Amazon and IBM (IBM). IBM is a leader in the hybrid cloud space, while Amazon continues to be an undisputed leader in the cloud space.

VMware’s fiscal 1Q16 revenues of $1.8 billion rose 6.6% on the back of strong results from NSX, VSAN, VxRail software, vCloud Air Network, AirWatch as a Service, and vCloud Air.


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