VMware’s revenue grew 11 percent year-over-year to $1.98 billion during its fiscal 2018 third quarter. Non-GAAP net income for the quarter was $553 million, or $1.34 per share, up 17 percent compared to $485 million, or $1.14 per share, for same quarter last year.
“Our strategy to transition from a compute virtualization company to providing a broad portfolio of products and services across cloud, mobile, networking, and security is proving successful,” said Pat Gelsinger, CEO of VMware, during the company’s earnings call Thursday, according to a Seeking Alpha transcript.
Gelsinger attributed “several points of the growth” to bookings with IT services provider DXC. He also said, “The DXC deal was critical as part of the Vodafone deal.” VMware announced the win with Vodafone as a new network functions virtualization (NFV) customer during its second quarter fiscal 2018 earnings call.
VMware plans to close its acquisition of the software-defined wide-area networking (SD-WAN) vendor VeloCloud in its fiscal fourth quarter 2017. But, it’s not going to reveal the price it’s paying. It noted on its SEC Form 8-K, “As VMware does not acquire or dispose of businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, VMware believes it is useful to exclude acquisition, disposition and other-related items when looking for a consistent basis for comparison across accounting periods.”
On the earnings call, Gelsinger said, “Once the acquisition closes, VeloCloud will enable VMware to build on the success of its industry-leading network virtualization platform, VMware NSX. What VeloCloud offers is really NSX everywhere. It allows us to stretch it to the branch, into the WAN, and this is a powerful additional element of the market.”
Gelsinger predicted that the “real crescendo” of overlay deployment specific services “will occur with the 5G build out, which we think is 2020, 2021, and that’s going to continue to accelerate as we get to 5G really starting to occur.”
He said the company now has more than 50 dedicated telco virtual applications. And over 350 million subscribers are running some service over a VMware-hosted NFV infrastructure.
The company called out several partnerships that it forged during the third quarter, including the availability of VMware cloud on AWS in the AWS U.S. West region. VMware just this week also announced the availability of VMware cloud on AWS in the U.S. East region.
“VMware cloud on AWS brings VMware software-defined data center to the AWS cloud allowing customers to run applications across operationally consistent VMware vSphere-based private, public, and hybrid cloud environments,” Gelsinger said on yesterday’s call.
He also called out two other new offerings: VMware AppDefense and Pivotal Container Service. The company announced the new security product AppDefense at its VMworld conference in August. It protects applications running on vSphere-based virtualized and cloud environments by monitoring them against their intended state.
VMware also announced Pivotal Container Service (PKS) at its VMworld event. It’s the commercial version of the open source Project Kubo that will allow customers to deploy and manage Kubernetes on premises. VMware and Pivotal collaborated with Google to develop PKS.