VMware hails UK strength as it commits to partners

Dell deal is good news, VMware execs insist on Q4 earnings call

VMware has singled out its UK business as a strong performer in Q4 as it moves to soothe concerns about Dell's planned takeover of its parent EMC.

For the three months to 31 December, GAAP net profit rose 14 per cent annually to $373m (£260.9m) on sales which over the same period jumped 10 per cent to $1.87bn. For the full year, sales soared nine per cent to $6.57bn while GAAP net profit climbed 13 per cent to $997m.

The virtualisation firm said it was pleased with its overall business in Europe, hailing central Europe and Germany as the best performers thanks to some larger deals. But the UK was also singled out for its strength during the quarter.

VMware's parent company EMC is in the process of being acquired by Dell - an issue VMware's chief executive Pat Gelsinger was keen to raise on the earnings call.

"I appreciate that 2015 was a challenging time for VMware investors," he said. "I know many of you have sought additional clarity about the implications of Dell's planned merger with EMC. We believe our expanded relationship with Dell will be very positive for our customers and for our shareholders. Michael Dell has reached out to our major partners to assure them that VMware will continue to invest in its strong, independent partner ecosystem."

On Monday, reports emerged that VMware is planning to cut 900 jobs globally. In its results announcement, the firm said the "restructuring and realignment" would affect approximately 800 roles in the first half of this year, resulting in a charge between $55m and $65m.