VMware growth stalls in Q109

VMware revenue grew modestly in the first quarter, but it will probably be flat or down in Q2.

VMware growth sputters
The recession finally caught up to VMware. The virtualization giant reported this week that revenue grew only 7% this quarter compared with the same quarter in 2008, to $470 million. In fact, compared with the fourth quarter of 2008, VMware revenues were down by almost 9%, from $515 million.

VMware reported earnings the day after it launched vSphere 4. On the earnings call, VMware CEO Paul Maritz told investors not to expect vSphere 4 to have a dramatic impact on sales for another several months. In fact, the company warned investors that sales in the second quarter of 2009 might be flat or even down compared with $456 million it earned in the second quarter of 2008.

VMware stock opened the day on Thursday at $27.10 per share, down 16.7% from its previous day close of $32.54.

VMware partners rush to support vSphere 4
VMware partners are coming out in droves to announce their support for vSphere 4. Among the companies to issue press releases stating they will support the new virtualization platform include Veeam, which will support vSphere 4 as part of its nworks Management Pack and nworks Smart Plug-in for HP Operations Manager; NetApp with its storage arrays; Hewlett-Packard Co. with its Adaptive Infrastructure portfolio of ProLiant and BladeSystem servers; and Third Brigade Inc., whose Deep Security Virtual Appliance leverages the new VMsafe application programming interfaces to better protect virtual environments.

Let us know what you think about the story; email: Alex Barrett, News Director.

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