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VMware reports earnings, reaches out to SMBs: Virtualization news in brief

Beth Pariseau

VMware reports earnings, reaches out to SMBs
VMware Inc. has reported earnings results for the fourth quarter of 2010, saying its revenue of $836 million represents growth of 37% compared with the same quarter in 2009. CEO Paul Maritz said on the call the increase was due partly to returning growth in IT spending following 2009’s global recession. Net income for the fourth quarter was $120 million, which is more than double its $56 million profit for the fourth quarter of 2009.

Still, shares of VMware stocks took a temporary hit this week from some investors concerned that the company lacks plans to widen its operating margins by cutting more costs, though shares surged again following VMware’s announcement on Thursday of a new cloud service for small and medium-sized businesses (SMBs), called VMware Go Pro.

VMware Go Pro, a cloud service created with Software as a Service provider Shavlik Technologies, includes a Web-based management console for physical and virtual systems; a wizard for guided installations of vSphere; and licensing, trouble-ticket, and resource monitoring features. VMware also drew attention to an October 2010 study by analyst firm Gartner Inc. that put VMware’s share of the SMB market at 88%.

Finally, in other releases, VMware, Brocade and Dell Inc. announced a demo of their IT infrastructure stack together at West 2011 Conference and Exposition in San Diego, Calif.; VMware also kicked off a new partnership with consulting

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firm Capgemini, dubbed Virtualization to Business (V2B) Services.

Virtualization ISVs say they’re making hay
Meanwhile, VMware’s independent software vendors partners for backup and virtualization management staked claims in each of their respective markets around user interest in their products. In the first 90 days since Veeam Inc. released version 5 of its Backup & Replication software, for example, the company says the software has been downloaded more than 50,000 times, more than 2,500 new customers have purchased the product, and 2,200 existing customers have done a free upgrade to the new Enterprise Edition.

Elsewhere, privately held virtualization management software maker Reflex Systems LLC said its license revenue grew 150% in 2010, compared with the previous year, while the average deal size increased by 210%, and the company expanded its new customer base by 30% -- absolute numbers beyond these percentages were not reported. Meanwhile, real-time reporting and root-cause analysis software Netuitive Inc., the chief competitor to VMware’s Integrien, said in a press release that “8 of the world’s top 10 banks” (unnamed) now use its software.

All the above now face a new competitor following the acquisition of capacity planning software Hyper9 by IT management software maker SolarWinds and the launch of a new application performance and virtualization software offering; this move follows SolarWinds’ acquisition last January of another storage/virtualization management and reporting vendor, Tek-Tools.

Citrix  to support enterprise XenServer users of AWS
Citrix Systems Inc. and Amazon Web Services (AWS) said that Citrix will help Amazon put an enterprise polish – and a Windows-friendly cloud migration service – on its Elastic Compute Cloud cloud platform by providing tech support and new integration between AWS’ open source Xen-based virtual machines and Citrix’s proprietary Xen-based XenServer.  

Beth Pariseau is a senior news writer for SearchServerVirtualization.com. Write to her at bpariseau@techtarget.com.


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