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Analyzing VMware’s Geographic Performance

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Sep. 13 2018, Updated 6:30 a.m. ET

A look at US market growth for VMware

The US market for VMware accounts for ~48% of its total business and has seen solid growth in revenue for the last five quarters. The ongoing migration from on-premise to cloud platforms has led to robust growth for VMware. A strong product pipeline, which includes vSphere, vSAN (virtual storage area network), and NSX (Network Virtualization), is also gaining traction in both US and international markets.

In the above graph, you can see VMware’s US revenue growth for the last five quarters. In that period, its revenue grew at a CAGR (compound annual growth rate) of 0.9%.

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In order to boost its cloud market, VMware teamed up with Amazon’s (AMZN) AWS (Amazon Web Services) in October 2016. The company plans to launch VMware Cloud on AWS GovCloud, an upcoming hybrid cloud service that will enable US public sector agencies to deploy and run applications of VMware software on AWS GovCloud.

International market performance

VMware’s international business accounts for ~50% of its total business. It saw double-digit growth in revenue in the last five quarters, buoyed by the high demand for its products, particularly in the EMEA (Europe, the Middle East, and Africa) region.

The company’s partnership with Amazon’s AWS cloud is also helping it expand its reach to more international markets. In June, its products became available in Germany. In August, its products on AWS became available in the Asia-Pacific and Japan.

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