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Can VMware’s New Cloud Features Help It Retain Its Market Share?

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Aug. 28 2018, Published 6:24 p.m. ET

Expanding market share

VMware (VMW) continues to expand its cloud services via Amazon (AMZN) Web Services (or AWS). After establishing a strong foothold for the service across the United States and Europe, the company has now made it available in the Asia-Pacific region as well.

In October 2016, VMware formed a strategic alliance with AWS to deliver an integrated hybrid cloud platform to customers situated in different locations. The partnership has not only extended the company’s market reach but also reduced its delivery costs. It’s also improved the company’s customer renewal rates and durations.

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Positive environment driving business

VMware looks to gain from the ongoing migration of workloads and applications from on-premises infrastructure to cloud platforms across different enterprises. VMware’s popular products, including vSphere, Virtual SAN, and NSX, are available on the AWS cloud, allowing its customers to accelerate the data-shifting process with ease and in a secure environment.

In the graph above, we can see VMware’s revenue growth over the last five quarters. During the period, its revenue rose at a CAGR (compound annual growth rate) of 11.1%.

New additions

On August 27, VMware announced the vSphere Platinum Edition, which will offer advanced security to customer applications and infrastructure. Moreover, its launch of a vSAN (virtual storage area network) and its new updates to the VMware vRealize cloud management platform should provide developer-friendly infrastructure to its clients, allowing them to work on any cloud platform without difficulty. The company also plans to launch the vSphere 6.7 Update 1 and the vRealize Suite 2018, which should allow it to provide organizations with control across both traditional and cloud-native applications on and off premises.

VMware has also enhanced its features on the AWS cloud. It has included VMware Log Intelligence to offer advanced security and compliance. Its inclusion of the AWS Direct Connect integration also helps users easily connect to any hybrid cloud platform with better network speeds.

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