uploads///Total Revenue

How a Strong Product Portfolio Drives VMware’s Business



Key products

VMware (VMW) has gained a strong industry foothold, driven by a solid product portfolio supporting network virtualization. The company separates its product offerings into three segments: Software-Defined Data Center (or SDDC), Hybrid Cloud Computing, and End-User Computing.

VMware covers four key major areas for its clients: modernizing data centers, integrating public clouds, empowering security, and transforming security.

VMW’s SDDC technologies allow its clients to expand their private clouds to the public cloud platform, allowing them to run, manage, secure, and connect all user applications across all clouds and devices. The strong sales of VMware vSAN, NSX, and vSphere drive its business.

VMware’s Hybrid Cloud Computing segment is driven by vCloud Air Network (or vCAN) and VMware vCloud Air. The company’s End-User Computing solution is composed of VMware Workspace ONE. The company’s digital workspace platform which VMware AirWatch (or AirWatch) and VMware Horizon.

Article continues below advertisement


From the graph above, we can see the revenue growth in the last five quarters. During this period, VMware’s revenues grew at a CAGR (compound annual growth rate) of 3.2%.

In fiscal Q1 2018, the company’s total revenues increased 13.6% YoY (year-over-year) to $2.3 billion. Higher growth in bookings across all its product categories led to this revenue growth. VMware projects its fiscal Q1 2019 revenue to reach ~$2.0 billion. It expects its fiscal 2019 revenues to reach ~$8.7 billion.


More From Market Realist