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How Has VMware’s NSX Been Performing?


Aug. 21 2020, Updated 8:46 a.m. ET

VMware’s license bookings continue growth

In this article, we’ll look into VMware’s NSX performance in its most recent quarter. NSX is a virtual networking and security software platform that’s part of the company’s SDDC (software-defined data center) architecture.

NSX’s portfolio license bookings, including VeloCloud, rose 30%, with its customer base reaching to 4,500 in fiscal Q1 2019. Pat Gelsinger, VMware’s CEO, said that the company plans to push this number up by “hundreds of thousands” by offering a mid-market networking solution, as we’ll see later in the series. All ten of VMware’s top ten deals in the past quarter have included NSX.

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Expansion of NSX Cloud capabilities

Usage cases in NSX offerings have expanded from micro-segmentation, application continuity, and automation to container networking, cloud, branch transformation, and security in the past quarter. VMware’s NSX portfolio has expanded into a suite of related offerings, from NSX Data Center, NSX SD-WAN (software-defined wide-area network) by VeloCloud, NFV (network functions virtualization), NSX Cloud, and AppDefense to secure them all.

NSX SD-WAN incorporates SD-WAN technology, which the company acquired from VeloCloud’s buyout last year. It integrates with NSX Cloud and NSX Data Center.

In the past quarter, VMware also signed a deal to deploy NSX to Microsoft (MSFT) Azure, the company’s cloud computing platform, saying NSX Cloud is “now adding support for applications running in Microsoft Azure.”

VMware is rapidly expanding NSX Cloud capabilities, as this is the company’s software-as-a-service offering, which supports its vSphere-private clouds, Amazon Web Services (AMZN) workloads, VMware Cloud on Amazon Web Services, and now Azure.


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