How Have VMware’s Hybrid Cloud and SaaS Performed?



Hybrid cloud and SaaS performances

Earlier in the series, we discussed VMware’s (VMW) NSX performance in the company’s most recent quarter. We also discussed recent updates aimed at improving VMware’s position in the hybrid cloud space.

VMware’s hybrid cloud and SaaS (software-as-a-service) offerings on the back of AirWatch SaaS and vCloud Air Network rose in the double digits YoY (year-over-year). AirWatch SaaS and vCloud Air Network’s combined contribution rose to ~9% of overall revenue in fiscal 1Q18. 

In the same quarter, hybrid cloud and SaaS’s combined contribution rose 30%. Within hybrid cloud and SaaS, vCloud Air Network rose nearly 40%, “with several partners up over 100%” YoY.

Earlier in the series, we discussed VMware’s various partnerships with leading players in the cloud space, namely Microsoft (MSFT), Amazon (AMZN), and IBM (IBM). These partnerships were in line with VMware’s hybrid cloud strategy.

Last month, in continuation of this strategy, VMware partnered with Oracle (ORCL) to facilitate Oracle’s mobile enterprise application management through VMware AirWatch.

In October 2016, VMware AirWatch announced the addition of smart glasses management for use in augmented and mixed reality.

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AirWatch is dominant in enterprise mobility management

The above chart shows that given its ~18% market share in 2017, VMware AirWatch is a dominant player in the enterprise mobility management space. 

Microsoft’s 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, Citrix’s (CTXS) XenMobile’s share fell to 18% in 2017 from 22.3% in 2015.


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