On his first quarterly earnings call as VMware’s incoming CEO, Raghu Raghuram, who will move into the role on June 1, signaled his intent to turbo charge the company’s multicloud strategy.

The spin-off from Dell Technologies, which will happen in the fall, will further accelerate VMware’s multicloud push, he added.

“We are at the dawn of this multicloud era of computing that enterprises have the sovereignty to deploy their digital assets where it best fits their business,” Raghuram said on VMware’s first quarter fiscal 2022 earnings call.

Customers are deploying their applications across multiple public clouds, in data centers, and at the edge, he added. “And as a result, customers are looking for an end-to-end software platform that allows them to deploy their applications in the locations that best fit their business needs.”

VMware’s goal, also espoused by former CEO Pat Gelsinger, is to be this consistent software platform across customers’ distributed IT environments “with which customers can rapidly build and modernize their applications,” Raghuram said. “Post spin [from Dell Technologies], we will be the only standalone cloud company that has the necessary strategic partnerships with all the major cloud companies, and all the leading infrastructure companies, to deliver on a truly customer-centered, multicloud vision.”

VMware’s multicloud Strategy

During the question-and-answer portion of the call, Raghuram provided more details about what this turbo-charged, multicloud strategy will look like. The first piece involves helping customers build and deploy applications “faster, and on the cloud of their choice,” he said. “And that is Tanzu,” Raghuram added, referring to VMware’s Kubernetes platform. “Today, 30%, at least a third of the Tanzu business is deployments on public clouds.”

The second part of VMware’s multicloud strategy involves its massive cloud-partner ecosystem that lets customers run VMware workloads on the cloud of their choice. “We have spoken to you about the 75, 85 million workloads on vSphere platforms today in the data center,” Raghuram said. “And as customers think about deploying them in the clouds, or at the edge, or wherever they want to deploy them, the presence of our stack on AWS, which is our preferred partner, on Microsoft, on Google, on Oracle or IBM, Alibaba, etc., provides customers with a significant choice.”

Once customers build and deploy their applications, they can then use VMware’s vRealize products for multicloud management, and its NSX and Carbon Black networking and security products to ensure consistent networking and security policies, Raghuram added.

“There is no other industry player in the market that can bring all of these together into a coherent platform,” he said. “We are very unique in that regard. The second reason we are very unique is the starting point for customers is the set of VMware technologies and tools they’re already using. So we can help them get to the future state faster than anybody else.”

VMware Q1 Fiscal 2022 Financials

In addition to highlighting VMware’s multicloud push, Raghuram and CFO Zane Rowe, who was named interim CEO after Gelsinger’s departure, discussed the company’s quarterly financial results.

Revenue for the first quarter hit $2.99 billion, an increase of 9% from the first quarter of fiscal 2021. The combination of subscription and software-as-a-service (SaaS) plus license revenue reached $1.39 billion, a 12% year-over-year increase. Meanwhile subscription and SaaS revenue alone in Q1 grew 29% to $741 million.

The largest revenue contributions to VMware’s subscription and SaaS total came from its VMware Cloud Provider Program, modern applications business; end-user computing; VMware Carbon Black, and VMware Cloud on AWS, which grew more than 80%.

VMware’s net income for the first quarter was $744 million, or $1.76 per diluted share, up 16% compared to $640 million, or $1.52 per diluted share, for the first quarter of fiscal 2021.

Looking ahead, Rowe raised full-year guidance because of a stronger-than-expected Q1. Company executives expect total revenue to grow 9% year over year to about $12.8 billion, while subscription and SaaS along with license revenue increases 12.5% to $6.33 billion.

He also forecasts operating margin to grow 28.5% on earnings per share to reach $6.88.