VMware reported its third quarter fiscal 2018 financial results on Nov. 30, showing continued growth for the virtualization vendor as it expands its portfolio with new cloud services.
For the quarter, VMware reported revenue of $1.98 billion, representing an 11 percent year-over-year gain. Net income was reported at $443 million, for a 43 percent year-over-year increase. Looking forward, VMware provided fourth quarter guidance for revenue to be approximately $2.263 billion.
The third quarter was a particularly busy one for VMware, with the company hosting its VMworld event where it announced the general availability of the VMware cloud on AWS service.
"VMware cloud on AWS brings the 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 and optimized access to AWS services," VMware CEO Pat Gelsinger said during his company's earnings call.
To date in terms of adoption, Gelsinger said most of what he has seen is proof of concept work, with a move toward enterprise production use-cases coming soon. Gelsinger is very optimistic about the AWS deal, given the customer overlap.
"Clearly AWS is now used by enterprise customers, and it's pretty rare that you won’t find an enterprise customer who doesn’t have at least some amount of experimentation going on with AWS," Gelsinger said. "So the presence of VMware in an account is almost 100 percent at AWS."
Making the Path to a Multi-Cloud Future Less Cloudy for Customers
Gelisinger additionally said VMware has found that being able to offer customers a strategy for the multi-cloud future is a very positive thing.
"So basically, everywhere there is a VMware customer, yes, they are interested in exploring what this might look like," he said.
While in the early days of the cloud there wasn't necessarily a clear path or understanding of how organizations would use both on-premises and cloud-native deployments together, that's no longer the case.
"As people need to refresh their on-premises environments, they are going to be able to think more holistically about how they move to the cloud with new tools like the VMware cloud on AWS," Gelsinger said. "They have powerful ways to move to the cloud in a multi-cloud way on their own schedule without having to make bad investments in re-factoring applications."
Sean Michael Kerner is a senior editor at ServerWatch and InternetNews.com. Follow him on Twitter @TechJournalist.