UPDATED 08:00 EDT / APRIL 22 2015

NEWS

VMware earnings top analysts’ expectations

dollar-499481_640VMware Inc. might be worried about the threat posed to its business by containers, but its financial health is looking better than ever following yet another fine quarterly earnings report.

The company has just posted first quarter results exceeding analysts’ expectations, hauling in $1.51 billion in revenues, an 11 percent increase on 2014’s first quarter, and producing a non-GAAP net income of some $196 million, one percent down from the year before.

Even better, VMware seems to be doing well in the areas its been more focused on of late. The company has been pushing to sell more management software alongside its main product in recent months, and that seems to be working. Yesterday, it pointed out that management software adoption has reached 15 percent of its customer base, which leaves lots of room for future growth. VMware also says its VSAN virtual storage array is proving to be very popular with vSphere customers.

Another strong performing area was hybrid cloud and software-as-a-service, which pulled in six percent of the company’s total revenues. Much of the hybrid cloud cash relates to revenues from VMware’s vCloud Air products, while its software-as-a-service revenues primarily come from AirWatch.

As for license sales, VMware’s “bread and butter”, these remain in good health with new agreements accounting for over fifty percent of all such sales, and a particularly strong showing in Germany and Japan, the company said. All in all, the company is looking good to drum up total revenues in 2015 of “between $6.570 billion and $6.690 billion, or up 9% to 11% year-over-year,” said VMware’s Chief Financial Officer and Co-Chief Operating Officer Jonathan Chadwick in a statement.

Of course VMware’s healthy sales don’t disguise that the company is facing threats to its business from all over the place, as illustrated by its squabbles with startup Nutanix and its dash to incorporate Docker containers into its own software. Recently the company lost out on a $1.6 billion contract with the U.S. Department of Defense thanks to pressure from Nutanix, Amazon Web Services, Citrix and others, but at the earnings call it did its best to brush aside those concerns, reports The Register. VMware president and co-COO Carl Eschenbach said the company still has great relations with the U.S. government, and said its agencies may still decide to shop with it at a later date.

Image credit: Geralt via Pixabay.com

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