VMware’s NSX networking license bookings grew 40 percent year over year during the second quarter of fiscal 2019. Eighty-two of the Fortune 100 companies use NSX, which now has 7,500 total customers, VMware CEO Pat Gelsinger said on a conference call today with investors. And nine of the company’s top 10 deals in Q2 included NSX.
“We’re quickly seeing it becoming the standard for software-defined networking,” Gelsinger said, adding that the platform is no longer just about data center networking and microsegmentation — two of the early popular use cases for the technology. Use cases include “multi-cloud, containers, microsegmentation, cloud migration, and now moving NSX to the branch with SD-WAN,” he said.
Networking’s been good for VMware’s bottom line, and it also promises to be a hot topic at next week’s VMworld annual event in Las Vegas.
In an earlier interview with SDxCentral this week, Tom Gillis, SVP and GM of VMware’s Networking and Security business unit, said VMware will launch “microsegmentation 2.0” at the conference, bringing application awareness to the technology. This includes “being able to look beyond packets on the wire and into the application itself to see how it’s behaving,” Gillis said.
“Clearly this strategy and broadening of NSX is really capturing the interest of industry,” Gelsinger said on today’s earnings call.
The company posted another impressive quarter with revenue reaching $2.17 billion, an increase of 13 percent from the second quarter of fiscal 2018. License revenue for the second quarter was $900 million, a year-over-year increase of 15 percent.
Non-GAAP net income for the second quarter of fiscal 2019 was $638 million, or $1.54 per diluted share, up 14 percent per diluted share compared to $559 million, or $1.35 per diluted share, for the second quarter of fiscal 2018.
VMware reported double-digit license bookings growth across all of its business categories, with vSAN storage license bookings growing 70 percent year-over-year.
Additionally, VMware Cloud on AWS is seeing “good customer traction,” Gelsinger said. VMware and Amazon Web Services (AWS) launched the hybrid cloud platform last year at VMworld. While they have yet to say how many customers are using the service, Gelsinger put the number in the hundreds. “We now have hundreds of paid customers on the platform,” he said on the call.