VMware CEO Pat Gelsinger outlines strategy for software-defined datacenter

Infotech Lead India:
VMware CEO Pat Gelsinger announced strategy to deliver the software-defined datacenter and expand hybrid cloud offerings.

VMware’s long term strategy is to empower people and organizations by simplifying IT through virtualization software.

Based on VMware’s cloud strategies, the company — as announced earlier — is aiming for 14-16 percent growth in revenue in 2013 to $5.23 billion to $5.35 billion. It also expects annual license revenues to grow between 8 and 11 percent.

“We will continue to introduce new innovations and offerings that will empower IT as a broker of services that drive speed of business and competitive advantage,” said Gelsinger.

In fact, the virtualization and cloud infrastructure solutions major is cashing in on strong market opportunity as enterprises are looking for simplifying their IT infrastructure.

VMware in January said revenues for Q4 2012 grew 22 percent to $1.29 billion, while net income marginally increased to $206 million from $200 million for the fourth quarter of 2011.

Revenues of VMware for 2012 were $4.61 billion, an increase of 22 percent from 2011. Net income increased to $746 million in 2012 from $724 million.

According to IDC, VMware has more than 55 percent market share in the virtualization industry. The new strategies will assist the company to gain more market share. Its recent acquisitions — Wavemaker, SlideRocket, Packet Motion, Shavlik, Neo Accel, Digital Fuel and Socialcast — are also helping the virtualization major.

At a Strategic Forum for Institutional Investors, Gelsinger said that the software-defined data center will enable VMware to extend the benefits of virtualization to all areas of the data center – network, security, storage and management.

As part of the growth plan, it will merge VMware vCloud Networking and Security product line with the Nicira Network Virtualization Platform (NVP) and launch VMware NSX in H2 2013.

VMware NSX will provide an open framework for the integration of ecosystem services for networking and security.

VMware will also extend the software-defined data center with a hybrid cloud service offering that will allow its 480,000 customers to reap the benefits of the public cloud without changing their existing applications.

VMware will launch VMware vCloud Hybrid Service later this year.

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