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Chart in Focus: VMware’s NSX Performance in Fiscal 2Q18

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VMware’s NSX performance

So far in this series, we’ve discussed VMware’s (VMW) new launches and its recently announced fiscal 2Q18 earnings results. Let’s see how its network virtualization and security offering in the networking space, NSX, has performed in fiscal 2Q18.

NSX saw increased traction as its license bookings rose 40%, driven by demand for microsegmentation security offerings. NSX was part of VMware’s top ten deals in fiscal 2Q18, as the chart below shows, which indicates that the market is adopting VMware NSX to transform data centers. VMware signed its biggest telco deal with Vodafone in the previous quarter.
NSX

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NSX’s role in enabling cybersecurity

NSX, along with vCenter Server and vSAN, forms VMware’s Cloud Foundation. According to VMware, “NSX enables the creation of entire networks in software and embeds them in the hypervisor layer, abstracted from the underlying physical hardware. All network components can be provisioned in minutes, without the need to modify the application.”

Explaining its importance in the current scenario of increasing cyberattacks, Murad Wagh, director of systems engineering at VMware, noted, “Cyber security is critical and hacks are increasing. The enterprises miss a wholesome architecture for security at data centres which can actually be provided by visualization technology.”

As a result, security has played a key role in NSX’s adoption and revenue growth.

At VMworld, VMware launched NSX Cloud, a service designed to provide more consistent security and networking services for applications running in multiple clouds.

Amazon partnership

Highlighting NSX’s role in its VMware–Amazon partnership as well as its cloud strategy, Pat Gelsinger, VMware’s CEO, noted during VMworld that NSX would perform a variety of crucial functions to bring together multiple clouds from VMware, Amazon’s (AMZN) AWS, and its network of partners.

Gelsinger added, “With microsegmentation, we can extend out NSX to serve as the connective tissue to IoT [Internet of Things] devices,” as reported by TechTarget.

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