VMware thanks 'rock star' products for double-digit sales rise

NSX and vSAN stars of the show as virtualisation vendor reports 11 per cent Q2 revenue rise

VMware CEO Pat Gelsinger branded two of its products "rock stars" after reporting a revenue increase for Q2 this year.

The virtualisation vendor's GAAP revenue rose 11 per cent year on year to $1.69bn (£1.28bn) in the three months ending 31 March, while operating income jumped 57 per cent to $396m.

In an earnings call to investors, Gelsinger highlighted two products as key to the improved financial results.

"The rock stars of Q2 were NSX and vSAN and they were just fabulous," he said. "They, combined with the AirWatch and our vCAN [vcloud air network] business, have been the strong growth drivers. All of them exceeded our plans for the first half of the year so we feel very confident in that."

Q2 also saw a one per cent increase in licence revenues, to $644m, and the acquisition of software-defined datacentre security firm Arkin.

Gelsinger's position at VMware has come under question in recent months. In May he was forced to deny rumours he would be leaving the firm after Dell completes the EMC acquisition.

In the earnings call, Gelsinger reiterated the positive impact that he expects the takeover to have on VMware.

"We believe our expanded relationship with Dell will be very positive for our customers, partners and shareholders. One of the core tenets of this relationship is the commitment from Michael Dell that VMware will retain and continue to invest in its strong independent partner ecosystem," he said.

"Overall, we were very pleased with the business through our OEM partners in Q2 and we expect our relationship with Dell to build upon the strong partnership we've built with EMC over many years."

However, TechMarketView analyst Kate Hanaghan said it is not yet clear what the implications will be for VMware.

"Hybrid cloud and SaaS revenue still has some way to go in terms of revealing its full potential as it only accounts for eight per cent of revenue," she said.

"The question is whether VMware's switch to new owner Dell - or Dell Technologies as the new Dell/EMC entity will be known - will help it accelerate growth in strategically important areas, or whether it will negatively affect that potential."