VMware off to flying start in 2010

Virtualisation becoming mainstream, claims vendor

VMware predicts first quarter performance will be repeated through 2010

VMware's financial year has got off to a flyer after the virtualisation leviathan saw first quarter revenues explode 35 per cent to $634m on last year.

The company’s results show that US revenues topped $317m, up 30 per cent on the same quarter last year and international revenues grew by 40 per cent to $317m.

The vendor held up its first-quarter success as proof that virtualisation is becoming more mainstream.

Paul Maritz, chief executive of VMware, said: “The quarter’s strong performance reinforces our position that virtualisation is becoming a cornerstone for customers' IT.

“With this broad acceptance of virtualisation, it allows us to maintain an innovative and aggressive strategy to help remove complexity from IT and deliver on our vision of enabling IT-as-a-service.”

During the first quarter, the firm saw revenues generated by its software maintenance and professional services division peak at $322m, 51 per cent higher on an annual comparison.

Licensing revenues rose by 21 per cent to $312m, but this figure is predicted to drop over the course of the next quarter.

Mark Peek, chief financial officer at VMware, said: “The company expects second quarter license revenues to be down sequentially, but total revenues to increase to a range of $635 and $665m incorporating increased revenues from the acquisition of Zimbra and assets acquired from EMC.”

Peek added that the firm expects the strong start to its financial year to continue and predicted that its annual revenues for the year will reach at least $2.6bn.