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https://killexams.com/exam_list/VmwareKillexams : 10 most powerful network-management companies
Network management has never been easy, and the proliferation of IoT devices, the shift to remote work, and the migration of applications to multi-cloud environments have added new levels of complexity to enterprise networks.
IT execs are dealing with network management tool sprawl and employee skills gaps. They are also struggling to gain visibility across increasingly distributed networks, including SaaS instances that are not under their direct control.
Even the terminology is evolving. Terms like network monitoring or network management are being replaced with buzzwords like network observability or unified observability, according to a exact report from Enterprise Management Associates (EMA.)
Whatever wording is used to describe modern network management, there is agreement on what such a platform should include. On the basic networking level, the system needs to have the capability to ingest data from logs, traces, events and other metrics in order to troubleshoot problems, prevent outages from occurring in the future, and optimize network performance through automation.
Moving up the stack, management platforms should also provide application performance management (APM), and insight into the customer/user experience, known as digital experience management (DEM). Observability platforms are also extending into DevOps (NetDevOps), they share data with security teams for incident response and vulnerability management, and they leverage artificial intelligence (AIOps).
A single platform that does it all probably doesn’t exist. But we’ve identified 10 leading vendors that are working hard to get there. This subjective list is weighted heavily in favor of vendors with broad platforms, rather than point products, and with vendors that have demonstrated an intention to aggressively expand their portfolio of capabilities rather than stand pat in a particular niche.
1. IBM: From Tivoli to Turbonomic
Why they’re here: From its purchase of network management vendor Tivoli Systems in 1996 to its acquisition of APM innovator Instana in 2020, IBM has maintained its position as a power player in the management of networks, mainframe/server infrastructure, applications, and cloud-based assets. As one might expect from IBM, there are a raft of product lines: Legacy Tivoli systems have been re-branded and updated, products have been added through acquisition (SevOne for network performance management, QRadar for network security management). And IBM has developed new offerings internally, such as IBM Cloud Pak for Watson AIOps.
By the numbers: $1.5 billion: Exact numbers weren’t released, but it was reported that IBM paid between $1.5 billion and $2 billion for Turbonomic.
Outlook: IBM wants to provide customers with AI-based automation that spans AIOps, application performance and IT resource observability built on its Red Hat OpenShift cloud platform and delivered either as a product or managed service. The challenge will be merging the Turbonomic and Instana acquisitions into a seamless, hybrid-cloud management architecture that extends from data center mainframes to cloud-based containers.
2. Cisco: Moving up the stack through key acquisitions
Why they’re here: When you’re the market leader in routers, switches, firewalls, wireless access points and SD-WAN devices, and the technology trend is to decouple hardware from an overlay management plane, it’s only natural that you would dive headlong into management. Under the DNA Center umbrella, Cisco offers automated network operations, AIOps, DevOps, SecOps and customer experience monitoring. Cisco is also attempting to achieve full-stack observability through acquisition.
Power moves: Bought ThousandEyes for agent-based network performance optimization and AppDynamics for APM.
By the numbers: $1 billion. Amount that Cisco paid for ThousandEyes.
Outlook: Cisco has so much going on that sometimes it’s hard to keep track of it all. Cisco is committed to software-defined networking, intent-based networking, and now it’s pushing something called predictive networking. There’s a management offering for IoT, another for wireless. Gartner cautions, “Cisco’s ‘Full Stack Observability’ vision promises a unified experience for monitoring across AppDynamics, ThousandEyes and Intersight (a cloud operations platform). However, the products currently remain only loosely integrated, lacking a common installation, user experience or data platform.” For Cisco, the challenge is to continue to drive intelligence and automation throughout its vast product portfolio and to make sure its offerings are integrated across on-prem and cloud environments.
3. BMC Software: From mainframes to microservices
Why they’re here: Founded in 1980 to provide management software for IBM mainframes, the BMC of today is a privately held company focused on helping enterprises manage and automate complex IT operations across hybrid cloud environments. Forrester Research says the BMC Helix platform offers IT service management (ITSM), IT operations management (ITOM), enterprise service management (ESM), self-service portals for users, AI chatbots, and intelligent and predictive automation. It also integrates with multi-cloud environments “for powerful business automations while enabling IT and DevOps to work seamlessly instead of in silos.” And, of course, it supports self-managing mainframes through its Automated Mainframe Intelligence product line.
Power moves: Bought StreamWeaver to bolster its observability, AIOps and cloud migration capabilities.
By the numbers: BMC works with 86% of the Forbes Global 50.
Outlook: BMC bills itself as the company that can help its customers become "autonomous digital enterprises." Its management software spans the mainframe to Docker containers in the cloud. BMC Helix ServiceOps brings service and operations management together to protect against outages, identify performance issues, perform root cause analysis, and personalize the employee and customer experience. IDC analyst Stephen Elliot says ServiceOps is the wave of the future because it breaks down silos, so that "cross-departmental teams can deliver highly effective, incident-free services across their cloud technologies."
4. Broadcom: CA plus AppNeta plus VMware
Why they’re here: If Broadcom can successfully integrate the management tools acquired in the purchases of CA Technologies in 2018 (network and infrastructure monitoring and AIOps) and AppNeta in 2021 (SaaS-based network performance monitoring and digital experience management) with its impending VMware acquisition, Broadcom could become a multi-cloud management powerhouse.
Power moves: Bought virtualization pioneer VMware.
By the numbers: $61 billion: The amount Broadcom agreed to pay for VMware.
Outlook: Broadcom’s plan, once the VMware acquisition officially closes in late 2023, will be to shift its current portfolio of software assets into a VMware branded division. Addressing customer concerns about Broadcom’s intentions, president and CEO Hock Tan said recently, “VMware develops technology for the future and addresses a growing market. The Broadcom business case for this transaction is premised on focusing on increasing R&D, and executing so that customers see the value of the full portfolio of innovative product offerings — not on increasing prices.” For its part, VMware has a broad portfolio of software tools that span Tanzu for cloud-native application development, NSX for managing virtualized workloads, and a new cloud-native management service named Aria. So, for Broadcom the vision is there. It will all come down to execution.
5. Splunk: It all starts with data
Why they’re here: A perennial leader in Gartner’s rankings of SIEM vendors, Splunk has leveraged its ability to aggregate and analyze large amounts of data to become an observability platform power player. GigaOm says, “Splunk is a full-stack, multi-cloud, integrated enterprise solution that brings together infrastructure monitoring, application performance monitoring, digital experience monitoring, real user monitoring, synthetics, log investigation, AIOps, and incident response.”
Power moves: Splunk has been on a buying spree. Over the past couple of years, it has filled out its observability platform with the acquisitions of SignalFx, Omnition, Plumbr, Rigor, Flowmill and TwinWave Security. (It should also be noted that there have been persistent rumors that Cisco is trying to buy Splunk. However, that potential power move has yet to materialize.)
By the numbers: $1.05 billion: Amount Splunk paid for SignalFx.
Outlook: After several quarters of sputtering growth, Splunk brought in a new CEO in April 2022: Gary Steele, former CEO of Proofpoint. The move seems to have jumpstarted the company, because Splunk reported revenues of $799 million in its fiscal second quarter of 2023, a 32% year-over-year increase. Pund-IT analyst Charles King is bullish on Steele. “Not only has he founded and led successful startup companies, but Steele also has a substantial history of delivering the financial and leadership goods as a C-level executive. In other words, he’s likely to understand and value Splunk’s culture while also providing the business acumen the company needs to evolve and move into new markets.”
6. SolarWinds: Survives hack blowback
Why they’re here: When your brand is associated with one of the worst cyberattacks in history, that’s a lot to overcome. But SolarWinds was open and transparent during and after the infamous 2020 hack, and it appears to have weathered the storm. Revenues have stabilized, and the company is shipping new products and offering new cloud-based services to its massive installed base. SolarWinds was recognized as a leader by analyst firm GigaOm in its 2022 evaluation of network observability and cloud observability solutions.
Power moves: Launched a cloud-native, IT-management service called Observability that is also available for hybrid-cloud environments. Powered by machine learning, the service provides an integrated view of network, infrastructure, application, and database systems.
By the numbers: $179 million: Prior to the news of the hack coming out in late 2020, SolarWinds had consistent quarterly revenues in the $250 million range. After the hack, revenues levelled off closer to $180 million. Q3 2022 revenues were $179 million, down 1% from Q3 2021.
Outlook: SolarWinds had some issues to resolve even before the hack. Its products were somewhat siloed, and the focus was primarily on-prem rather than the cloud. But the company seems to have recognized its weaknesses and has taken concrete steps in the right direction. “We’re laying the foundation for autonomous operations through both monitoring and observability solutions,” said SolarWinds chief product officer Rohini Kasturi. “With our Hybrid Cloud Observability and SolarWinds Observability offerings, customers have ultimate flexibility to deploy on a private cloud, public cloud, or as a service.” Observability is an important step forward for SolarWinds, according to Gartner analyst Gregg Siegfried. “Bottom line is that they’ve been bleeding share as people move into the cloud,” adds Siegfried. The new Observability service “provides a migration path” for customers who need to extend their IT management capabilities to the cloud, he adds.
7. Dynatrace: Securing and optimizing software
Why they’re here: One of the new breed of cloud-native observability vendors, Dynatrace offers infrastructure monitoring, APM, application security, digital experience management (DEM), business analytics and cloud automation on a platform powered by its Davis AI engine. Research firm ISG named Dynatrace a leader in cloud-native observability and cloud-native security. And Gartner puts Dynatrace in the leadership category for APM.
By the numbers: 30%: Dynatrace reported second quarter fiscal 2023 revenue of $279 million, up 30%.
Power moves: Launched a new data analytics feature called Grail that promises unified observability, security, and business data analysis.
Outlook: Dynatrace says it exists “to make the world’s software work perfectly.” While perfection might not be achievable, Dynatrace is getting High Score for its cloud-native, AI-powered approach. Mark Purdy, principal analyst at ISG, says, “Quite simply, Dynatrace does it all in terms of observability and is particularly powerful with containerized applications. World-class AI and automation capabilities make the Dynatrace platform a clear leader.” Gartner adds, “Dynatrace’s roadmap includes extending the analytics capabilities of its Davis AI engine to new data sources, including expanded OpenTelemetry analytics, and further expanding its presence in cloud provider marketplaces, such as AWS, Microsoft Azure and Google Cloud Platform (GCP).”
8. Datadog: Nipping at the heels of industry leaders
Why they’re here: Datadog started out as a monitoring and security service for cloud applications and has been methodically filling out its portfolio to become a platform targeting enterprises launching digital transformation initiatives and migrating apps to the cloud. Datadog offers infrastructure monitoring, APM, device monitoring, cloud workload monitoring, and database monitoring. Gartner ranks Datadog as a leader in its latest evaluation of Application Performance Monitoring and Observability.
Thu, 24 Nov 2022 21:00:00 -0600entext/htmlhttps://www.networkworld.com/article/3680555/10-most-powerful-network-management-companies.htmlKillexams : VMware causes Blue Screen on Windows 11/10
If VMware is causing a Blue Screen error on Windows 11/10, the following tips could be handy for you. There are different reasons why your host computer fails to load the VMware virtual machine. This article explains some of the most common causes and solutions to mitigate this issue within moments.
If VMware causes a Blue Screen on Windows 11/10, follow these steps:
Update VMware
Low computer resource
Turn off Hyper-V
Disable other virtual machines
Corrupt ISO file
To know more about these steps, continue reading.
1] Update VMware
It is probably the very first thing you need to check. There could be times when VMware might fail to make your virtual machine up and running due to a glitch or bug. If you have recently updated your VMware app, it might come with a bug that could cause the aforementioned issue.
In most cases, companies recognize the bug and roll out an update almost immediately. If the same thing happens with your VMware installation, chances are they have already released an update. That is why it is recommended to check the official statement and install the update if anything has been released.
2] Low computer resource
Although the official statement says something about the 1.3GHz processor and 2GB of RAM, you might not be able to run a virtual machine smoothly or at all, having such resources. It is always recommended to configure much better hardware than the mentioned one.
If you have an old x64 architecture, you might not be able to run VMware virtual machines. In other words, there is a high chance of getting the blue screen error on the host computer while running the virtual OS. That is why it is recommended to have a better hardware configuration to bypass the BSOD
Pro tip: You can open Task Manager alongside VMware to check which app is consuming more RAM and other resources. Then, you can close such unnecessary apps to assign more CPU resources to VMware.
3] Turn off Hyper-V
Hyper-V is a Level 1 hypervisor that makes the host computer into a virtual PC. On the other hand, VMware is a Level 2 hypervisor that uses the host computer to build the virtual machine. That is why if you enabled Hyper-V earlier, you might not be able to use VMware or VirtualBox-like virtual machine apps simultaneously. You must disable either of them. In other words, if you want to use VMware, you need to disable Hyper-V.
To disable Hyper-V in Windows 11/10, do the following:
Click on the Taskbar search box.
Search for windows features.
Click on the individual search result.
Remove the tick from the Hyper-V checkbox.
Click the OK button.
Let it finish all the processes.
Restart your computer.
Once done, you will be able to use VMware without any BSOD.
4] Disable other virtual machines
Many people often use multiple virtual machine apps, such as VirtualBox, VMware, etc., simultaneously. In most situations, such workflow might cause a blue screen error on your computer. That is why it is recommended to disable other virtual machine software. For that purpose, you can take the help of the Task Manager to terminate all the dependencies.
5] download ISO file again
If VMware causes a blue screen while installing the virtual machine OS, it is suggested to download the ISO file again. If the ISO comes with some corrupt files, there is a chance of getting BSOD while using that ISO in the virtual machine. You can follow this guide to download Windows 11/10 ISO directly.
Yes, VMware can cause BSOD on Windows 11/10 PC. As said earlier, there could be countless reasons why you might get a blue screen error due to having VMware on your computer. For your information, some common reasons are mentioned in this article, and it is recommended to follow them to get rid of this issue.
Is VMware compatible with Windows 11?
Yes, VMware is compatible with Windows 11. If you have successfully installed Windows 11 without compromising the official system requirements, you can easily install VMware on your computer. As per the official statement, VMware requires a minimum of 2GB RAM along with 1.3GHz clock speed. On the other hand, it runs on almost all the x64 architecture without any problem.
Mon, 28 Nov 2022 07:23:00 -0600en-ustext/htmlhttps://www.thewindowsclub.com/vmware-causes-blue-screen-on-windowsKillexams : VMware Fusion 13
VMware has released version 13 of its VMware Fusion virtualization package with support for Windows 11 virtual machines on both Intel-based Macs and Apple M-series Macs. Intel-based Macs receive full support for Windows 11 with VMware Tools, allowing for host-guest interactions like drag-and-drop and copy-and-paste, share folders, and USB and Camera device passthrough. For Macs with M-series processors, VMware Tools provides virtual graphics and networking support for Windows 11 on ARM. (Note that VMware Fusion on M-series Macs does not support the Intel version of Windows.) The provided universal installer helps remove confusion over compatibility and makes mass deployment easier. VMware Fusion 13 also adds support for OpenGL 4.3 graphics in Windows and Linux VMs on Intel-based Macs, and in Linux VMs on M-series Macs.
VMware Fusion 13 Player continues to be free for personal, non-commercial use, and those with a version 12 license can register for a new version 13 key. For commercial use, VMware Fusion 13 Player costs $149 for a new license or $79 for an upgrade. VMware Fusion Pro is priced at $199 for a new license and $99 for an upgrade. (Free/$149.99/$199.99 new, $79/$99 upgrades, 672 MB, release notes, macOS 12+)
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Mon, 21 Nov 2022 08:06:00 -0600entext/htmlhttps://tidbits.com/watchlist/vmware-fusion-13-0/Killexams : VMware Helps Platform Teams Get Cloud Smart with New Cloud Native App Modernization and Cloud Management Capabilities
BARCELONA, Spain, November 08, 2022--(BUSINESS WIRE)--VMware Explore 2022 Europe—Adopting a multi-cloud strategy is essential to the success of modern enterprises, fueling growth and innovation by increasing flexibility while addressing necessary security and compliance requirements. In parallel, there is a rising need to consistently deliver, operationalize, and manage application sprawl across public and private clouds, or at edge locations to reign in exponentially growing complexity. Today at VMware Explore 2022 Europe, VMware (NYSE: VMW) will announce advancements to its VMware Tanzu® cloud native app portfolio and VMware Aria cloud management platform to deliver a cloud smart approach to cloud native application development, delivery, and management that supports customers at every step of their journey, across any Kubernetes and across any cloud.
"We know that no two application modernization journeys are alike, and organizations need freedom to select the right cloud, software artifacts, and services, for the right application, based on those individual application needs. But as businesses expand to new clouds to leverage unique services, the lack of skilled developers, Kubernetes expertise, security, compliance, and management complexity of operating across clouds are often cited as leading challenges," said Ajay Patel, senior vice president and general manager, Modern Apps & Management Business Group, VMware. "Platform teams need solutions that enable developer velocity, establish standard guardrails, and implement secure software pipelines to accelerate time to value, empower self-service, while unifying visibility and management to capitalize on the benefits of multi-cloud. Today’s enhancements across VMware Tanzu, VMware Image Builder™, and VMware Aria portfolios represent the latest milestone in VMware’s commitment to supporting our customers’ unique transformations with intelligent, holistic tools that deliver greater flexibility, consistency, and choice."
Deliver Application Building Blocks for Developers to Align with Security and Compliance Requirements
Open source is at the core of enterprise innovation with rapid adoption across enterprises in development, but use in production has slowed due to concerns on addressing security and lifecycle management, as reported in VMware’s State of Secure Supply Chain Survey 2022.(1) To address the growing needs around managing the content that enters into the corporate software supply chain, VMware will announce the beta launch of VMware Image Builder, the Bitnami engine powering the automation behind the packaging, verification and distribution of VMware Application Catalog™ artifacts. VMware Image Builder is an API-first SaaS solution that enables automation of the creation of secure, trusted, and continuously maintained software artifacts in alignment with corporate compliance standards to publish to developers as building blocks in the development process. VMware Image Builder enables packaging artifacts into multiple formats (Containers, Helm, Carvel, OVA), followed by the ability to trigger a range of verification tests including compliance check, functional, performance tests and vulnerability scans on a variety of Kubernetes distributions and VMware vSphere® across all major cloud platforms.
Harness Any Kubernetes on Any Cloud with VMware Tanzu® for Kubernetes Operations
VMware’s State of Kubernetes report(2) found that more than 40% of respondents utilize hybrid cloud models and 52% choose multiple public cloud vendors - revealing the state of cloud chaos many organizations are working to navigate. VMware’s Tanzu for Kubernetes Operations helps teams enable the right Kubernetes environment anywhere while standardizing and simplifying the management and security of those applications and environments.
At VMware Explore Europe, VMware will announce updates to key components of Tanzu for Kubernetes Operations – including VMware Tanzu® Kubernetes Grid™, VMware Tanzu® Mission Control™, and VMware Tanzu® Service Mesh™ Advanced edition – to optimize operations for any Kubernetes at scale, running on any cloud or at the edge, helping customers achieve faster development cycles and time to market for the workloads their business depends on. The new VMware Tanzu enhancements make Kubernetes optimized for edge environments, provide consistent Kubernetes management to on-prem, air-gapped environments, and bring Kubernetes operations to more public clouds.
Today, VMware will announce Tanzu Kubernetes Grid 2.1, which introduces support for Oracle Cloud Infrastructure, in addition to existing support for AWS, Azure, and vSphere, giving customers even more flexibility and consistency in deployments along their multi-cloud journeys. VMware will also announce a new initiative to design and offer self-managed, private deployments of VMware Tanzu Mission Control, which provides automated, policy-driven management and security support to customers as they scale Kubernetes cluster deployments. Customers that must operate in on-premises and air-gapped environments can benefit from full control of their entire fleet of clusters and network infrastructure connectivity. In addition to these updates, Tanzu Service Mesh Advanced will include additional capabilities to allow operators to automatically discover Kubernetes clusters, enable onboarding of those clusters for secure connectivity, and take advantage of new GitOps support to further unify operations with Kubernetes clusters.
Reimagine multi-cloud management with VMware Aria Hub™, VMware Aria Graph™
As IT teams accelerate app development and leverage a multi-cloud environment, platform teams must increasingly rely on cost, performance, security, and configuration data – often sitting in disparate tools – to understand the complete characteristics of the application that they are building. New enhancements to VMware’s Tanzu portfolio are complemented by new and expanded VMware Aria capabilities for cloud native application and multi-cloud management.
Unveiled at VMware Explore U.S. in San Francisco, VMware Aria Graph is a graph-based data store technology that provides a near real-time map of applications and clouds with management insights from customers’ existing VMware Aria solutions as well as federated third-party management tools. VMware Aria Graph is available within VMware Aria Hub, a new platform that provides centralized views and controls to manage the entire multi-cloud environment. Together, the VMware Aria portfolio, including VMware Aria Hub and VMware Aria Graph, deliver app-aware management to native public clouds and hybrid clouds that can empower customers to address challenges that span discipline, tools, and teams.
Today at VMware Explore Europe, VMware is announcing the initial availability of a new free offering of VMware Aria Hub powered by VMware Aria Graph. This new free tier offering will enable customers to inventory, map, filter, and search resources from up to two of their native public cloud accounts in either Amazon Web Services or Microsoft Azure. The freemium offering will allow users to understand the relationships of their resources to other resources, policies, and other key components in their cloud environments. Additional free functionality will include visibility into CIS benchmark violation data coming from VMware Aria Automation™ for Secure Clouds as well as list price costing for resources coming from VMware Aria Cost™ powered by CloudHealth®. With the free tier, customers will be able to manually curate applications to better understand dependencies and relationships of their business applications. Initial availability of this freemium offering is expected in VMware’s Q4 FY23. VMware is also announcing the Beta availability of VMware Aria Migration™. Previously announced as Tech Preview at VMware Explore in San Francisco, VMware Aria Migration is a new end-to-end service that can leverage VMware Aria Hub and VMware Aria Graph to accelerate and simplify the multi-cloud migration journey by automating assessment, planning, and execution.
VMware Cross-Cloud™ services Helps Customers Navigate the Multi-Cloud Era
At VMware Explore 2022 Europe, VMware is unveiling new and enhanced offerings for VMware Cross-Cloud services to help customers navigate the multi-cloud era with freedom, flexibility, and security. VMware Cross-Cloud services are a portfolio of cloud services that deliver a unified and simplified way to build, operate, access, and better secure any application on any cloud from any device. VMware Cross-Cloud service pillars include 1) App Platform, 2) Cloud Management, 3) Cloud & Edge Infrastructure, 4) Security & Networking, and 5) Anywhere Workspace. For the latest news and more on how VMware is delivering a faster and smarter path to cloud for digital businesses, visit the VMware Explore 2022 Europe media kit.
About VMware Explore
VMware Explore is an evolution of the company's flagship conference, VMworld. VMware Explore aims to be the industry’s go-to-event for all things multi-cloud. This year, it will feature industry-led solution and technical sessions, an extensive ecosystem of 90% of the top cloud partners, a thriving marketplace of multi-cloud ISVs and several networking events. To learn more about VMware Explore, please visit: www.vmware.com/explore.html.
About VMware
VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company’s 2030 Agenda. For more information, please visit www.vmware.com/company.
1-VMware The State of the Software Supply Chain: Open Source Edition 2022, October 2022 2-VMWare State of Kubernetes Report 2022, April 2022
VMware, VMware Explore, and Tanzu are registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions. VMware makes no certain that services announced in preview or private beta will become available at a future date. The information in this press release is for informational purposes only and may not be incorporated into any contract. This article may contain hyperlinks to non-VMware websites that are created and maintained by third parties who are solely responsible for the content on such websites.
Claire Hultin VMware Global Communications +1 650 427 1607 chultin@vmware.com
Wed, 30 Nov 2022 15:47:00 -0600en-UStext/htmlhttps://www.yahoo.com/lifestyle/vmware-helps-platform-teams-cloud-080100933.htmlKillexams : VMware Reports Fiscal Year 2023 Third Quarter Results
VMware Reports Fiscal Year 2023 Third Quarter Results
Total Revenue of $3.21 billion
Subscription and SaaS Revenue of $988 million, an increase of 20% year-over-year
VMware, Inc. (NYSE: VMW), a leading innovator in enterprise software, today announced financial results for the third quarter of fiscal year 2023:
Quarterly Review
Revenue for the third quarter was $3.21 billion, an increase of 1% from the third quarter of fiscal 2022.
The combination of subscription and SaaS and license revenue was $1.61 billion for the third quarter, an increase of 5% from the third quarter of fiscal 2022.
Subscription and SaaS constituted 31% of our total revenue for the quarter.
Subscription and SaaS revenue for the third quarter was $988 million, an increase of 20% year-over-year.
Subscription and SaaS ARR for the third quarter was $4.10 billion, an increase of 24% year-over-year.
GAAP net income for the third quarter was $231 million, or $0.54 per diluted share, down 43% per diluted share compared to $398 million, or $0.94 per diluted share, for the third quarter of fiscal 2022. Non-GAAP net income for the third quarter was $626 million, or $1.47 per diluted share, down 15% per diluted share compared to $725 million, or $1.72 per diluted share, for the third quarter of fiscal 2022.1
GAAP operating income for the third quarter was $390 million, a decrease of 25% from the third quarter of fiscal 2022. Non-GAAP operating income for the third quarter was $857 million, a decrease of 8% from the third quarter of fiscal 2022.
Operating cash flow for the third quarter was $1.26 billion. Free cash flow for the third quarter was $1.16 billion.
RPO for the third quarter totaled $11.90 billion, up 7% year-over-year.
“Q3 results met our expectations. This past quarter we demonstrated that our innovation engine is flourishing, as we unveiled many new offerings across our portfolio, including VMware vSphere 8, VMware vSAN 8 and VMware Aria,” said Raghu Raghuram, CEO, VMware. “We remain committed to and engaged in helping customers transform their businesses and unlock the full potential of multi-cloud.”
“Our Q3 subscription and SaaS ARR growth of 24% reflects increased adoption of our multi-cloud product portfolio and recently introduced customer programs,” said Zane Rowe, executive vice president and CFO, VMware. “By continuing to meet the evolving needs of our customers, we increased our mix of subscription and SaaS revenue to 31% of our total revenue this quarter.”
Business Highlights & Strategic Announcements
At VMware Explore U.S. 2022, the company announced new and enhanced portfolio offerings, Cross-Cloud services and expanded partnerships to deliver a faster and smarter path to cloud for digital businesses. New technology offerings included:
VMware vSphere 8, which introduces a new era of computing by supporting DPUs (Data Processing Units) alongside CPUs and GPUs—making the future of modern infrastructure accessible to all enterprises.
VMware vSAN 8 for breakthrough performance and hyper-efficiency.
VMware Aria, a new multi-cloud management portfolio, which provides a set of end-to-end solutions for managing cloud native applications and infrastructure.
VMware Cloud Foundation+, introducing a cloud-connected architecture for managing and operating full stack HCI in data centers.
Project Northstar, a preview of a major advancement of the VMware NSX platform, for multi-cloud networking, security and end-to-end visibility.
VMware Tanzu for Kubernetes Operations, which includes VMware Tanzu Mission Control, VMware Aria Operations for Apps and VMware Tanzu Kubernetes Grid, will simplify Kubernetes delivery, management and reliability.
The extensionof Workspace ONE Freestyle Orchestrator to mobile devices and third-party apps, for multi-platform automation and orchestration.
VMware recently announced an expansion of our partnership with IBM to help clients in regulated industries more easily move workloads to the cloud, with IBM Consulting now serving as a GSI partner for VMware.
VMware extended its ongoing collaboration with Microsoft to help customers with an Azure-first strategy to modernize enterprise VMware vSphere workloads quickly and cost-effectively in Microsoft Azure.
VMware and AWS announced new capabilities in the jointly engineered VMware Cloud on AWS service and broad availability of VMware Cross-Cloud services on AWS Marketplace to help customers accelerate moving VMware workloads to modern and more secure infrastructure in AWS to support enterprise cloud transformation.
VMware introduced VMware Carbon Black Workload for AWS, which delivers advanced protection purpose-built for securing both traditional and modern workloads.
VMware received industry analyst recognition:
VMware was positioned by Gartner, Inc. as a Leader in the 2022 Gartner Magic Quadrant for SD-WAN.2 Previously known as the Gartner Magic Quadrant for WAN Edge Infrastructure, this year’s report marks the fifth consecutive year that Gartner has recognized VMware as a Leader in SD-WAN.
VMware was positioned by Gartner, Inc. as a Leader in the 2022 Magic Quadrant for Unified Endpoint Management (UEM) Tools.3 This is the fifth consecutive year VMware has been named. We believe Gartner recognized VMware as a Leader in this Magic Quadrant because of our Workspace One product.
Analyst firm IDC ranked VMware No. 1 in the worldwide IT automation and configuration management (ITACM) 4 software market for 2021. This year’s report marks the fifth consecutive year that customers have helped VMware top the list in Worldwide IT Automation and Configuration.
1 Our annual estimated tax rate is based upon, among other things, current tax law regarding the impacts of Internal Revenue Code Section 174 (“Section 174”) research and development expense capitalization, which became effective beginning VMware’s fiscal 2023. Although the U.S. Congress continues to consider various legislative options that would defer the amortization requirement to later years, the financial results for the nine months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 2022. The provided estimated tax adjustment range, in the table accompanying this release, reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.
2 Gartner, Magic Quadrant for SD-WAN, By Jonathan Forest, Naresh Singh, Andrew Lerner, Karen Brown, 12 September 2022. Gartner does not endorse any vendor, product, or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose. Gartner and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and are used herein with permission. All rights reserved. This document was renamed from Magic Quadrant of WAN Edge Infrastructure to Magic Quadrant for SD-WAN in 2022.
3 Gartner Magic Quadrant for Unified Endpoint Management Tools, Tom Cipolla, Dan Wilson, Chris Silva, Craig Fisler, August 1, 2022.
4 The IDC report, “Worldwide IT Automation and Configuration Management Software Market Shares, 2021: Economic Recovery Drives Growth,” (doc #US49218922, June 2022) analyzed revenue and growth rate for the total market in calendar 2021, as well as revenues, shares and growth rates of select leading vendors.
About VMware
VMware is a leading provider of multi-cloud services for all apps, enabling digital innovation with enterprise control. As a trusted foundation to accelerate innovation, VMware software gives businesses the flexibility and choice they need to build the future. Headquartered in Palo Alto, California, VMware is committed to building a better future through the company’s 2030 Agenda. For more information, please visit vmware.com/company.
Definitive Agreement to be Acquired by Broadcom
VMware has entered into a definitive agreement to be acquired by Broadcom Inc. (“Broadcom”). The transaction, which is expected to be completed in Broadcom's fiscal year 2023, is subject to the receipt of regulatory approvals and other customary closing conditions. Please refer to the May 26, 2022 announcement entitled, “Broadcom to Acquire VMware for Approximately $61 Billion in Cash and Stock,” available on news.vmware.com.
Additional Information
VMware’s website is located at vmware.com, and its investor relations website is located at ir.vmware.com. VMware’s goal is to maintain the investor relations website as a portal through which investors can easily find or navigate to pertinent information about VMware, all of which is made available free of charge. The additional information includes: materials that VMware files with the SEC; announcements of investor conferences, speeches and events at which its executives talk about its products, services and competitive strategies; webcasts of its earnings calls, investor conferences and events (archives of which are also available for a limited time); additional information on its financial metrics, including reconciliations of non-GAAP financial measures to the most directly comparable GAAP measures; press releases on quarterly earnings, product and service announcements, legal developments and international news; corporate governance information; ESG (environmental, social and governance) information; other news, blogs and announcements that VMware may post from time to time that investors may find useful or interesting; and opportunities to sign up for email alerts and RSS feeds to have information pushed in real time.
VMware, vSphere, VMware vSAN, VMware Aria, Explore, NSX, Tanzu, Workspace ONE, and Carbon Blackare registered trademarks or trademarks of VMware, Inc. or its subsidiaries in the United States and other jurisdictions. All other marks and names mentioned herein may be trademarks of their respective organizations.
Use of Non-GAAP Financial Measures
Reconciliations of non-GAAP financial measures to VMware’s financial results as determined in accordance with GAAP are included at the end of this press release following the accompanying financial data. For a description of these non-GAAP financial measures, including the reasons management uses each measure, please see the section of the tables titled “About Non-GAAP Financial Measures.”
Annual Recurring Revenue (“ARR”)
ARR is an operating measure VMware uses to assess the strength of the Company’s subscription and SaaS offerings. ARR is a performance metric and should be viewed independently of, and not as a substitute for or combined with, revenue and unearned revenue. ARR represents the annualized value of VMware’s committed customer subscription and SaaS contracts as of the end of the reporting period, assuming any contract that expires during the next 12 months is renewed on its existing terms and any applicable termination for convenience clauses are not exercised, except that, for consumption-based subscription and SaaS offerings, ARR represents the annualized quarterly revenue based on revenue recognized for the current reporting period.
Forward-Looking Statements
This press release contains forward-looking statements including, among other things, statements regarding the expected benefits to customers, partners and stockholders of VMware’s strategy and offerings, as well as the proposed acquisition of VMware by Broadcom and related timing of its consummation. real results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (1) the satisfaction of the conditions precedent to consummation of the proposed acquisition, and the ability to consummate the proposed acquisition, on a timely basis or at all; (2) business disruption following the announcement of the proposed transaction, including disruption of current plans and operations; (3) the effects of the proposed acquisition, the spin-off of VMware from Dell and changes in VMware’s and Dell’s commercial relationships and go-to-market strategy on VMware’s ability to (a) enter into, maintain and extend strategically effective partnerships, collaborations and alliances, (b) maintain and establish new relationships with customers, partners and suppliers, and (c) maintain operating results and VMware’s business generally; (4) difficulties in retaining and hiring key personnel and employees, including due to the proposed acquisition; (5) the ability to implement plans, forecasts and other expectations with respect to the business after the completion of the proposed acquisition and realize synergies; (6) the impact of the COVID-19 pandemic on VMware’s operations, financial condition, customers, the business environment and global and regional economies; (7) the ability of VMware to adapt its offerings, business operations and go-to-market activities to changes in how customers consume information technology resources, such as through subscription and SaaS offerings; (8) changes to VMware’s and Dell’s respective financial conditions and strategic directions, including potential effects of the proposed acquisition of VMware by Broadcom, that could adversely impact the VMware-Dell commercial relationship and collaborations; (9) the continued risk of on-going and new litigation and regulatory actions, including the outcome of any legal proceedings related to the proposed acquisition; (10) adverse changes in general economic or market conditions; (11) delays or reductions in consumer, government and information technology spending, including due to the announced acquisition; (12) competitive factors, such as pricing pressures, industry consolidation, entry of new competitors into the industries in which VMware competes, as well as new product and marketing initiatives by VMware’s competitors; (13) rapid technological changes in the virtualization software, cloud, end user, edge security and mobile computing and telecom industries; (14) the uncertainty of VMware’s customers’ acceptance of and ability to transition to emerging technologies and new offerings and computing strategies in the industries in which VMware competes; (15) VMware’s ability to protect its proprietary technology; (16) changes to product and services development timelines; (17) risks associated with cyber-attacks, information security and data privacy; (18) disruptions resulting from key management changes; (19) risks associated with international sales, such as fluctuating currency exchange rates and increased trade barriers; (20) changes in VMware’s financial condition; and (21) other business effects, including those related to industry, market, economic, political, regulatory and global health conditions. These forward-looking statements are made as of the date of this press release, are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including VMware’s most exact reports on Form 10-K and Form 10-Q and current reports on Form 8-K that VMware may file from time to time, which could cause real results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this release.
VMware, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
Three Months Ended
Nine Months Ended
October 28,
October 29,
October 28,
October 29,
2022
2021
2022
2021
Revenue:
License
$
621
$
710
$
1,990
$
2,093
Subscription and SaaS
988
820
2,830
2,336
Services
1,602
1,658
4,815
4,891
Total revenue
3,211
3,188
9,635
9,320
Operating expenses(1):
Cost of license revenue
39
37
113
111
Cost of subscription and SaaS revenue
196
175
583
502
Cost of services revenue
384
362
1,128
1,051
Research and development
832
768
2,409
2,251
Sales and marketing
1,081
1,011
3,216
2,993
General and administrative
289
316
815
808
Realignment
—
—
7
1
Operating income
390
519
1,364
1,603
Investment income
20
—
28
1
Interest expense
(77
)
(74
)
(222
)
(173
)
Other income (expense), net
(14
)
12
(44
)
(7
)
Income before income tax
319
457
1,126
1,424
Income tax provision
88
59
306
190
Net income
$
231
$
398
$
820
$
1,234
Net income per weighted-average share, basic
$
0.55
$
0.95
$
1.94
$
2.94
Net income per weighted-average share, diluted
$
0.54
$
0.94
$
1.93
$
2.92
Weighted-average shares, basic
423,993
419,456
422,194
419,309
Weighted-average shares, diluted
426,328
421,763
424,490
422,201
__________
(1) Includes stock-based compensation as follows:
Cost of license revenue
$
—
$
—
$
1
$
1
Cost of subscription and SaaS revenue
7
5
18
16
Cost of services revenue
31
21
79
70
Research and development
163
125
441
402
Sales and marketing
104
74
278
227
General and administrative
43
33
124
97
VMware, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
October 28,
January 28,
2022
2022
ASSETS
Current assets:
Cash and cash equivalents
$
3,972
$
3,614
Short-term investments
—
19
Accounts receivable, net of allowance of $10 and $10
1,909
2,297
Due from related parties
821
1,438
Other current assets
616
598
Total current assets
7,318
7,966
Property and equipment, net
1,597
1,461
Deferred tax assets
6,090
5,906
Intangible assets, net
526
714
Goodwill
9,598
9,598
Due from related parties
189
199
Other assets
2,808
2,832
Total assets
$
28,126
$
28,676
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable
$
297
$
234
Accrued expenses and other
2,566
2,806
Current portion of long-term debt
1,000
—
Unearned revenue
6,339
6,479
Due to related parties
201
132
Total current liabilities
10,403
9,651
Long-term debt
9,686
12,671
Unearned revenue
4,878
4,743
Income tax payable
260
242
Operating lease liabilities
849
927
Due to related parties
804
909
Other liabilities
440
409
Total liabilities
27,320
29,552
Contingencies
Stockholders’ equity (deficit):
Class A common stock, par value $0.01; authorized 2,500,000 shares; issued and outstanding 424,613 and 418,808 shares
4
4
Additional paid-in capital
870
—
Accumulated other comprehensive loss
(13
)
(5
)
Accumulated deficit
(55
)
(875
)
Total stockholders’ equity (deficit)
806
(876
)
Total liabilities and stockholders’ equity (deficit)
$
28,126
$
28,676
VMware, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
October 28,
October 29,
October 28,
October 29,
2022
2021
2022
2021
Operating activities:
Net income
$
231
$
398
$
820
$
1,234
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
316
281
906
825
Stock-based compensation
348
258
941
813
Deferred income taxes, net
(101
)
(61
)
(181
)
(92
)
(Gain) loss on equity securities and disposition of assets, net
1
(9
)
(11
)
29
Other
3
3
6
6
Changes in assets and liabilities, net of acquisitions:
Accounts receivable
162
41
384
247
Other current assets and other assets
(92
)
(77
)
(512
)
(467
)
Due from related parties
446
255
627
777
Accounts payable
79
17
48
87
Accrued expenses and other liabilities
(208
)
37
(527
)
(181
)
Income taxes payable
94
53
208
24
Unearned revenue
(15
)
(106
)
(6
)
(82
)
Due to related parties
1
—
(36
)
—
Net cash provided by operating activities
1,265
1,090
2,667
3,220
Investing activities:
Additions to property and equipment
(108
)
(106
)
(327
)
(263
)
Sales of investments in equity securities
—
34
20
68
Purchases of strategic investments
(3
)
(1
)
(11
)
(7
)
Proceeds from disposition of assets
—
4
91
5
Business combinations, net of cash acquired, and purchases of intangible assets
—
—
(4
)
(15
)
Net cash used in investing activities
(111
)
(69
)
(231
)
(212
)
Financing activities:
Proceeds from issuance of common stock
124
128
248
267
Proceeds from issuance of senior notes, net of issuance costs
—
5,944
—
5,944
Repayment of term loan
(500
)
—
(2,000
)
—
Repayment of note payable to Dell
—
(270
)
—
(270
)
Repurchase of common stock
—
(143
)
(89
)
(872
)
Shares repurchased for tax withholdings on vesting of restricted stock
(48
)
(48
)
(253
)
(291
)
Principal payments on finance lease obligations
(1
)
(1
)
(4
)
(3
)
Net cash provided by (used in) financing activities
(425
)
5,610
(2,098
)
4,775
Net increase in cash, cash equivalents and restricted cash
729
6,631
338
7,783
Cash, cash equivalents and restricted cash at beginning of the period
3,272
5,922
3,663
4,770
Cash, cash equivalents and restricted cash at end of the period
$
4,001
$
12,553
$
4,001
$
12,553
Supplemental disclosures of cash flow information:
Cash paid for interest
$
86
$
49
$
226
$
146
Cash paid for taxes, net
94
73
278
276
Non-cash items:
Changes in capital additions, accrued but not paid
$
14
$
(2
)
$
23
$
9
VMware, Inc.
GROWTH IN REVENUE PLUS SEQUENTIAL CHANGE IN UNEARNED REVENUE
(in millions)
(unaudited)
Growth in Total Revenue Plus Sequential Change in Unearned Revenue
Three Months Ended
October 28,
October 29,
2022
2021
Total revenue, as reported
$
3,211
$
3,188
Sequential change in unearned revenue(1)
(14
)
(105
)
Total revenue plus sequential change in unearned revenue
$
3,197
$
3,083
Change (%) over prior year, as reported
4
%
Growth in License and Subscription and SaaS Revenue Plus Sequential Change in Unearned License and Subscription and SaaS Revenue
Three Months Ended
October 28,
October 29,
2022
2021
Total license and subscription and SaaS revenue, as reported
$
1,609
$
1,530
Sequential change in unearned license and subscription and SaaS revenue(2)
253
27
Total license and subscription and SaaS revenue plus sequential change in unearned license and subscription and SaaS revenue
$
1,862
$
1,557
Change (%) over prior year, as reported
20
%
__________
(1) Consists of the change in total unearned revenue from the preceding quarter. Total unearned revenue consists of current and non-current unearned revenue amounts presented in the condensed consolidated balance sheets.
(2) Consists of the change in unearned license and subscription and SaaS revenue from the preceding quarter.
REMAINING PERFORMANCE OBLIGATIONS
(in millions)
(unaudited)
Growth in Remaining Performance Obligations
October 28,
October 29,
2022
2021
Remaining performance obligations(3)
$
11,902
$
11,123
Change (%) over prior year
7
%
Remaining performance obligations, current(4)
$
6,660
$
6,232
Change (%) over prior year
7
%
__________
(3) Remaining performance obligations represent the aggregate amount of the transaction price in contracts allocated to performance obligations not delivered, or partially undelivered, as of the end of the reporting period. Remaining performance obligations include unearned revenue, multi-year contracts with future installment payments and certain unfulfilled orders against accepted customer contracts at the end of any given period.
(4) Current remaining performance obligations represent the amount expected to be recognized as revenue over the next twelve months.
VMware, Inc.
SUPPLEMENTAL UNEARNED REVENUE SCHEDULE
(in millions)
(unaudited)
October 28,
July 29,
April 29,
January 28,
October 29,
July 30,
2022
2022
2022
2022
2021
2021
Unearned revenue as reported:
License
$
28
$
20
$
20
$
19
$
17
$
20
Subscription and SaaS
3,197
2,952
2,671
2,669
2,238
2,208
Services
Software maintenance
6,636
6,903
6,877
7,208
6,773
6,916
Professional services
1,356
1,356
1,298
1,326
1,205
1,194
Total unearned revenue
$
11,217
$
11,231
$
10,866
$
11,222
$
10,233
$
10,338
VMware, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
For the Three Months Ended October 28, 2022
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
GAAP
Stock-Based
Compensation
Employer
Payroll Taxes
on Employee
Stock Transactions
Intangible
Amortization
Acquisition, Disposition
and Other
Items
Tax
Adjustment(1)
Non-GAAP
As Adjusted(2)
Operating expenses:
Cost of license revenue
$
39
—
—
(9
)
—
—
$
29
Cost of subscription and SaaS revenue
$
196
(7
)
—
(36
)
—
—
$
153
Cost of services revenue
$
384
(31
)
—
—
(8
)
—
$
345
Research and development
$
832
(163
)
—
(2
)
—
—
$
666
Sales and marketing
$
1,081
(104
)
(1
)
(15
)
(7
)
—
$
956
General and administrative
$
289
(43
)
—
—
(41
)
—
$
205
Operating income
$
390
348
1
62
56
—
$
857
Operating margin(2)
12.1
%
10.8
%
—
%
1.9
%
1.7
%
—
26.7
%
Other income (expense), net(3)
$
(14
)
—
—
—
1
—
$
(13
)
Income before income tax
$
319
348
1
62
57
—
$
787
Income tax provision
$
88
73
$
161
Tax rate(2)
27.6
%
20.5
%
Net income
$
231
348
1
62
57
(73
)
$
626
Net income per weighted-average share, diluted(2)(4)
$
0.54
$
0.82
$
—
$
0.15
$
0.13
$
(0.17
)
$
1.47
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.
(4) Calculated based upon 426,328 diluted weighted-average shares of common stock.
VMware, Inc.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP DATA
IMPACT OF INTERNAL REVENUE CODE SECTION 174
For the Three Months Ended October 28, 2022
(amounts in millions, except per share amounts, and shares in thousands)
Net income per weighted-average share, diluted (4)(5)
$
0.54
$
1.47
$
1.54
-
1.56
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Our annual estimated tax rate is based upon, among other things, current tax law regarding the impacts of Internal Revenue Code Section 174 (“Section 174”) research and development expense capitalization, which became effective beginning in VMware’s fiscal 2023. Although the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years and such possible deferral was considered in our full year guidance provided on February 28, 2022, the financial results for the three months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 2022. The provided estimated tax adjustment range reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.
(3) Represents the estimated non-GAAP results excluding the impact of Section 174 capitalization under the tax law in effect as of October 28, 2022.
(4) Totals may not sum, due to rounding. Tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(5) Calculated based upon 426,328 diluted weighted-average shares of common stock.
VMware, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
For the Three Months Ended October 29, 2021
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
GAAP
Stock-Based
Compensation
Employer
Payroll Taxes
on Employee
Stock Transactions
Intangible
Amortization
Acquisition, Disposition
and Other
Items
Tax
Adjustment(1)
Non-GAAP
As Adjusted(2)
Operating expenses:
Cost of license revenue
$
37
—
—
(10
)
—
—
$
27
Cost of subscription and SaaS revenue
$
175
(5
)
—
(43
)
—
—
$
127
Cost of services revenue
$
362
(21
)
—
—
—
—
$
341
Research and development
$
768
(125
)
—
(2
)
—
—
$
641
Sales and marketing
$
1,011
(74
)
(1
)
(20
)
—
—
$
915
General and administrative
$
316
(33
)
—
—
(82
)
—
$
202
Operating income
$
519
258
1
75
82
—
$
935
Operating margin(2)
16.3
%
8.1
%
—
%
2.4
%
2.6
%
—
29.3
%
Other income (expense), net(3)
$
12
—
—
—
(10
)
—
$
2
Income before income tax
$
457
258
1
75
72
—
$
863
Income tax provision
$
59
79
$
138
Tax rate(2)
12.9
%
16.0
%
Net income
$
398
258
1
75
72
(79
)
$
725
Net income per weighted-average share, diluted for Classes A and B(2)(4)
$
0.94
$
0.61
$
—
$
0.18
$
0.17
$
(0.19
)
$
1.72
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.
(4) Calculated based upon 421,763 diluted weighted-average shares for Classes A and B.
VMware, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
For the Nine Months Ended October 28, 2022
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
GAAP
Stock-Based
Compensation
Employer
Payroll Taxes
on Employee
Stock Transactions
Intangible
Amortization
Realignment
Charges
Acquisition, Disposition
and Other
Items
Tax
Adjustment(1)
Non-GAAP
As Adjusted(2)
Operating expenses:
Cost of license revenue
$
113
(1
)
—
(28
)
—
—
—
$
83
Cost of subscription and SaaS revenue
$
583
(18
)
—
(109
)
—
—
—
$
456
Cost of services revenue
$
1,128
(79
)
(1
)
—
—
(8
)
—
$
1,040
Research and development
$
2,409
(441
)
(1
)
(7
)
—
—
—
$
1,959
Sales and marketing
$
3,216
(278
)
(4
)
(48
)
—
(7
)
—
$
2,881
General and administrative
$
815
(124
)
(1
)
—
—
(69
)
—
$
622
Realignment
$
7
—
—
—
(7
)
—
—
$
—
Operating income
$
1,364
941
7
192
7
84
—
$
2,594
Operating margin(2)
14.2
%
9.8
%
0.1
%
2.0
%
0.1
%
0.9
%
—
26.9
%
Other income (expense), net(3)
$
(44
)
—
—
—
—
(10
)
—
$
(54
)
Income before income tax
$
1,126
941
7
192
7
74
—
$
2,346
Income tax provision
$
306
175
$
481
Tax rate(2)
27.2
%
20.5
%
Net income
$
820
941
7
192
7
74
(175
)
$
1,865
Net income per weighted-average share, diluted(2)(4)
$
1.93
$
2.22
$
0.02
$
0.45
$
0.02
$
0.17
$
(0.41
)
$
4.39
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.
(4) Calculated based upon 424,490 diluted weighted-average shares of common stock.
VMware, Inc.
SUPPLEMENTAL RECONCILIATION OF GAAP TO NON-GAAP DATA
IMPACT OF INTERNAL REVENUE CODE SECTION 174
For the Nine Months Ended October 28, 2022
(amounts in millions, except per share amounts, and shares in thousands)
Net income per weighted-average share, diluted (4)(5)
$
1.93
$
4.39
$
4.61
-
4.67
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Our annual estimated tax rate is based upon, among other things, current tax law regarding the impacts of Internal Revenue Code Section 174 (“Section 174”) research and development expense capitalization, which became effective beginning in VMware’s fiscal 2023. Although the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years and such possible deferral was considered in our full year guidance provided on February 28, 2022, the financial results for the nine months ended October 28, 2022 reflect the impact of the tax law in effect as of October 28, 2022. The provided estimated tax adjustment range reflects the non-GAAP adjustment we would expect should the capitalization provisions of Section 174 be deferred or repealed with effect for fiscal 2023.
(3) Represents the estimated non-GAAP results excluding the impact of Section 174 capitalization under the tax law in effect as of October 28, 2022.
(4) Totals may not sum, due to rounding. Tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(5) Calculated based upon 424,490 diluted weighted-average shares of common stock.
VMware, Inc.
RECONCILIATION OF GAAP TO NON-GAAP DATA
For the Nine Months Ended October 29, 2021
(amounts in millions, except per share amounts, and shares in thousands)
(unaudited)
GAAP
Stock-Based
Compensation
Employer
Payroll Taxes
on Employee
Stock Transactions
Intangible
Amortization
Realignment
Charges
Acquisition, Disposition
and Other Items
Tax
Adjustment(1)
Non-GAAP
As Adjusted(2)
Operating expenses:
Cost of license revenue
$
111
(1
)
—
(30
)
—
—
—
$
80
Cost of subscription and SaaS revenue
$
502
(16
)
—
(128
)
—
—
—
$
358
Cost of services revenue
$
1,051
(70
)
(1
)
—
—
—
—
$
979
Research and development
$
2,251
(402
)
(1
)
(5
)
—
—
—
$
1,842
Sales and marketing
$
2,993
(227
)
(5
)
(66
)
—
—
—
$
2,696
General and administrative
$
808
(97
)
(1
)
—
—
(126
)
—
$
584
Realignment
$
1
—
—
—
(1
)
—
—
$
—
Operating income
$
1,603
813
8
229
1
126
—
$
2,781
Operating margin(2)
17.2
%
8.7
%
0.1
%
2.5
%
—
%
1.4
%
—
29.8
%
Other income (expense), net(3)
$
(7
)
—
—
—
—
28
—
$
20
Income before income tax
$
1,424
813
8
229
1
154
—
$
2,629
Income tax provision
$
190
231
$
421
Tax rate(2)
13.3
%
16.0
%
Net income
$
1,234
813
8
229
1
154
(231
)
$
2,208
Net income per weighted-average share, diluted for Classes A and B(2)(4)
$
2.92
$
1.93
$
0.02
$
0.54
$
—
$
0.36
$
(0.55
)
$
5.23
__________
(1) Non-GAAP financial information for the quarter is adjusted for a tax rate equal to our annual estimated tax rate on non-GAAP income. This rate is based on our estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating the non-GAAP financial measures presented above as well as significant tax adjustments. Our estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that we believe materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to our estimated annual tax rates as described above, our estimated tax rate on non-GAAP income may differ from our GAAP tax rate and from our real tax liabilities.
(2) Totals may not sum, due to rounding. Operating margin, tax rate and net income per weighted average share information are calculated based upon the respective underlying, non-rounded data.
(3) Non-GAAP adjustment to other income (expense), net includes gains or losses on investments in equity securities, whether realized or unrealized.
(4) Calculated based upon 422,201 diluted weighted-average shares for Classes A and B.
VMware, Inc.
REVENUE BY TYPE
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
October 28,
October 29,
October 28,
October 29,
2022
2021
2022
2021
Revenue:
License
$
621
$
710
$
1,990
$
2,093
Subscription and SaaS
988
820
2,830
2,336
Total license and subscription and SaaS
1,609
1,530
4,820
4,429
Services:
Software maintenance
1,298
1,354
3,907
4,011
Professional services
304
304
908
880
Total services
1,602
1,658
4,815
4,891
Total revenue
$
3,211
$
3,188
$
9,635
$
9,320
Percentage of revenue:
License
19.3
%
22.3
%
20.6
%
22.5
%
Subscription and SaaS
30.8
%
25.7
%
29.4
%
25.0
%
Total license and subscription and SaaS
50.1
%
48.0
%
50.0
%
47.5
%
Services:
Software maintenance
40.4
%
42.5
%
40.5
%
43.0
%
Professional services
9.5
%
9.5
%
9.5
%
9.5
%
Total services
49.9
%
52.0
%
50.0
%
52.5
%
Total revenue
100.0
%
100.0
%
100.0
%
100.0
%
VMware, Inc.
REVENUE BY GEOGRAPHY
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
October 28,
October 29,
October 28,
October 29,
2022
2021
2022
2021
Revenue:
United States
$
1,614
$
1,582
$
4,780
$
4,587
International
1,597
1,606
4,855
4,733
Total revenue
$
3,211
$
3,188
$
9,635
$
9,320
Percentage of revenue:
United States
50.3
%
49.6
%
49.6
%
49.2
%
International
49.7
%
50.4
%
50.4
%
50.8
%
Total revenue
100.0
%
100.0
%
100.0
%
100.0
%
VMware, Inc.
RECONCILIATION OF GAAP CASH FLOWS FROM OPERATING ACTIVITIES
TO FREE CASH FLOWS
(A NON-GAAP FINANCIAL MEASURE)
(in millions)
(unaudited)
Three Months Ended
Nine Months Ended
October 28,
October 29,
October 28,
October 29,
2022
2021
2022
2021
GAAP cash flows from operating activities
$
1,265
$
1,090
$
2,667
$
3,220
Capital expenditures
(108
)
(106
)
(327
)
(263
)
Free cash flows
$
1,157
$
984
$
2,340
$
2,957
About Non-GAAP Financial Measures
To provide investors and others with additional information regarding VMware’s results, VMware has disclosed in this earnings release the following non-GAAP financial measures: non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income per diluted share, free cash flow, non-GAAP income tax provision as adjusted for the impact of Internal Revenue Code Section 174 (“Section 174”) and non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency. VMware has provided a reconciliation of each non-GAAP financial measure used in this earnings release to the most directly comparable GAAP financial measure. Other than free cash flow, non-GAAP income tax provision as adjusted for the impact of Section 174 and non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency, these non-GAAP financial measures differ from GAAP in that they exclude stock-based compensation, employer payroll taxes on employee stock transactions, amortization of acquired intangible assets, realignment charges, acquisition, disposition and other items, and discrete items that impacted our GAAP tax rate, each as discussed below. Our non-GAAP financial measures also reflect the application of our non-GAAP tax rate. Free cash flow differs from GAAP cash flow from operating activities with respect to the treatment of capital expenditures.
VMware’s management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, for short- and long-term operating plans, to calculate bonus payments and to evaluate VMware’s financial performance, the performance of its individual functional groups and the ability of operations to generate cash. Management believes these non-GAAP financial measures reflect VMware’s ongoing business in a manner that allows for meaningful period-to-period comparisons and analysis of trends in VMware’s business, as they exclude charges and gains that are not reflective of ongoing operating results. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating VMware’s operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Additionally, management believes information regarding free cash flow provides investors and others with an important perspective on the cash available to make strategic acquisitions and investments, to repurchase shares, to fund ongoing operations and to fund other capital expenditures.
Management believes these non-GAAP financial measures are useful to investors and others in assessing VMware’s operating performance due to the following factors:
Stock-based compensation. Stock-based compensation is generally fixed at the time the stock-based instrument is granted and amortized over a period of several years. Although stock-based compensation is an important aspect of the compensation of VMware’s employees and executives, the expense for the fair value of the stock-based instruments VMware utilizes may bear little resemblance to the real value realized upon the vesting or future exercise of the related stock-based awards. Management believes it is useful to exclude stock-based compensation in order to better understand the long-term performance of VMware’s core business.
Employer payroll taxes on employee stock transactions. The amount of employer payroll taxes on stock-based compensation is dependent on VMware’s stock price and other factors that are beyond VMware’s control and do not correlate to the operation of the business.
Amortization of acquired intangible assets. A portion of the purchase price of VMware’s acquisitions is generally allocated to intangible assets, such as intellectual property, and is subject to amortization. However, VMware does not acquire businesses on a predictable cycle. Additionally, the amount of an acquisition’s purchase price allocated to intangible assets and the term of its related amortization can vary significantly and are unique to each acquisition. Therefore, VMware believes that the presentation of non-GAAP financial measures that adjust for the amortization of intangible assets provides investors and others with a consistent basis for comparison across accounting periods.
Realignment charges. Realignment charges include workforce reductions, asset impairments, losses on asset disposals and costs to exit facilities. VMware’s management believes it is useful to exclude these items, when significant, as they are not reflective of VMware’s core business and operating results.
Acquisition, disposition and other items. As VMware does not acquire or dispose of businesses on a predictable cycle and the terms of each transaction can vary significantly and are unique to each transaction, VMware believes it is useful to exclude acquisition, disposition and other items when looking for a consistent basis for comparison across accounting periods. These items include:
– Direct costs of acquisitions and dispositions, such as transaction and advisory fees.
– Costs associated with integrating acquired businesses.
– Accruals for the portion of merger consideration payable in installments that may be paid in cash or VMware stock, at the option of VMware.
– Gains or losses on investments in equity securities, whether realized or unrealized.
– Charges recognized for non-recoverable strategic investments or gains recognized on the disposition of strategic investments.
– Gains or losses on sale or disposal of distinct lines of business or product offerings, or transactions with features similar to discontinued operations, including recoveries or charges recognized to adjust the fair value of assets that qualify as “held for sale.”
– Certain costs incurred related to VMware's spin-off from its former parent company, Dell Technologies Inc., completed on November 1, 2021, such as legal and advisory fees.
– Certain costs incurred related to VMware's pending acquisition by Broadcom Inc. ("Broadcom"), such as legal and advisory fees incurred to effect the acquisition and retention compensation incurred to preserve our business organization through the consummation of the merger. The acquisition is expected to occur in Broadcom's fiscal year 2023 and is subject to the receipt of regulatory approvals and other customary closing conditions.
Tax adjustment. Non-GAAP financial information for the quarter is adjusted for a tax rate equal to VMware’s annual estimated tax rate on non-GAAP income. This rate is based on VMware’s estimated annual GAAP income tax rate forecast, adjusted to account for items excluded from GAAP income in calculating VMware’s non-GAAP income as well as significant tax adjustments. VMware’s estimated tax rate on non-GAAP income is determined annually and may be adjusted during the year to take into account events or trends that VMware management believes materially impact the estimated annual rate including, but not limited to, significant changes resulting from tax legislation, material changes in the geographic mix of revenue and expenses, changes to our corporate structure and other significant events. Due to the differences in the tax treatment of items excluded from non-GAAP earnings, as well as the methodology applied to VMware’s estimated annual tax rates as described above, the estimated tax rate on non-GAAP income may differ from the GAAP tax rate and from VMware’s real tax liabilities.
Additionally, VMware’s management believes that the non-GAAP financial measure of free cash flow is meaningful to investors because management reviews cash flow generated from operations after taking into consideration capital expenditures due to the fact that these expenditures are considered to be a necessary component of ongoing operations.
VMware’s management also believes that the non-GAAP income tax provision as adjusted for the impact of Section 174 research and development expense capitalization, which became effective beginning with VMware’s fiscal 2023, is meaningful to investors, given that the U.S. Congress is considering various legislative options that would defer the capitalization requirement to later years, possibly with effect for fiscal 2023.
Further, VMware’s management believes that the non-GAAP revenue as adjusted for the impact of the suspension of our business operations in Russia and foreign currency is meaningful to investors due to the unexpected impacts of Russia’s invasion of Ukraine on VMware’s business operations in the quarter as well as changes in foreign currency exchange rates versus our expectations.
The use of non-GAAP financial measures has certain limitations because they do not reflect all items of income and expense that affect VMware’s operations. Specifically, in the case of stock-based compensation, if VMware did not pay out a portion of its compensation in the form of stock-based compensation and related employer payroll taxes, the cash salary expense included in operating expenses would be higher, which would affect VMware’s cash position. VMware compensates for these limitations by reconciling the non-GAAP financial measures to the most comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from, measures prepared in accordance with GAAP and should not be considered measures of VMware’s liquidity. Further, these non-GAAP measures may differ from the non-GAAP information used by other companies, including peer companies, and therefore comparability may be limited.
Management encourages investors and others to review VMware’s financial information in its entirety and not rely on a single financial measure.
IT teams are dealing with a new set of challenges in today’s hybrid work environment. Employees use more devices, access more applications across more clouds, and work from more locations than ever.
This week at VMware Explore, VMware announced new capabilities across its Anywhere Workspace platform to help further ease this management burden for IT teams and Improve their productivity with automation. VMware Anywhere Workspace enables hybrid work using Unified Endpoint Management (UEM), VDI and DaaS, Digital Employee Experience (DEX), and Workspace Security.
VMware outlined its vision for “autonomous workspaces” – the next evolution of managing digital workspaces, one that injects data science and automation across endpoint management, security and end-user experiences.
The new updates to VMware Anywhere Workspace — which span digital employee experience management, IT orchestration, and VMware Horizon Cloud — advance the capabilities needed to deliver on that vision. The latest enhancements to VMware Anywhere Workspace further incorporate intelligence and automation into every step of the process to simplify IT operations and enable a more secure and flexible digital employee experience.
“Organisations are searching for a balance in the hybrid work model that enables successful remote work while preserving a creative culture that fosters innovation,” says Shankar Iyer, senior vice-president and GM: end-user computing at VMware. “To develop a successful hybrid working model, organizations need to automate how they deliver, manage and better secure hybrid workstyles. The enhancements we are announcing today to VMware Anywhere Workspace bring us one step closer to VMware’s vision of delivering autonomous workspaces.”
DEX Solution Expanded to Support 3rd Party Managed Windows Devices
Digital Employee Experience (DEX) capabilities have become a priority for organisations as they look to maintain employee engagement in a hybrid work environment. A recently commissioned Forrester Consulting study notes that enabling a superior employee experience requires four key components – experience measurement, analysis, experience delivery and remediation.
VMware will broaden the coverage of its DEX solution to support Digital Employee Experience Management (DEEM) for third-party managed Windows devices. With this update, VMware will offer the industry’s most holistic DEX solution spanning delivery, measurement, analysis, and remediation by now supporting multiple endpoint use cases and operating systems.
With VMware’s DEX solution in place, organisations can seamlessly manage the digital workspace experience for multiple endpoints and ease the transition to modern management by communicating with all employees and saving IT time and money.
Extend IT Systems with Workspace ONE Freestyle Orchestrator
Workspace ONE Freestyle Orchestrator is a modern no-/low-code orchestration framework designed to help IT teams automate complex and manual configuration tasks.
New updates to Workspace ONE Freestyle Orchestrator will enable automation beyond device-based task-specific workflows within Workspace ONE to context-driven ticketing workflows that span third-party IT systems. With this expanded integration into 3rd party ticketing tools such as ServiceNow, Coupa and more, IT can benefit from intelligent, proactive ticketing.
Beyond endpoint management, Freestyle Orchestrator drives proactive ticketing for IT and tackles various complex businesses processes, enabling further efficiency and agility for IT.
VMware Horizon Cloud Next-Gen Now Extends to Hybrid Deployments, Receives FedRAMP Authorization
Virtual Desktop Infrastructure (VDI) and Desktop-as-a-Service (DaaS) solutions have become essential assets in the rise of remote and hybrid work. They allow IT admins to deploy and provision virtual desktops and accompanying apps quickly and easily, saving time and enabling productivity.
VMware has announces that Horizon 8 customers using new Horizon SaaS subscriptions will be able to use their on-premises and cloud deployments to connect to Horizon Cloud next-gen, enabling a hybrid cloud experience.
Customers will have the flexibility of deploying virtual desktops and apps in Microsoft Azure with an option to also run Horizon 8 on-premises or in the cloud, while leveraging the lower costs and scale benefits of the Horizon Cloud next-gen platform. With a hybrid-cloud approach, IT can further broaden the scope of use cases their VDI and DaaS environments can cover, including HA/DR and cloud bursting.
At VMware Explore 2022 US, VMware released the next-gen of Horizon Cloud for Horizon Cloud on Microsoft Azure. The next-gen platform uses a thin-edge architecture that helps reduce infrastructure costs by 70%, while increasing scalability by 150%.
Lastly, Horizon Cloud on Microsoft Azure has achieved Federal Risk and Authorization Management Program (FedRAMP) High Authorization through the Joint Authorization Board (JAB) and received its Authority to Operate (ATO) in Civilian agencies.
In addition, VMware’s Horizon Cloud authorization package is now with the US Defense Information Security Agency (DISA), and a Provisional Authority to Operate (P-ATO) for US Department of Defense Impact Level 5 is expected by end of the calendar year.
Workspace ONE Mobile Threat Defense Supports Phishing and Content Protection
Threats on mobile devices have doubled in the past year according to the Verizon Mobile Security Index, and mobile devices are even more critical in today’s anywhere work environment.
Workspace ONE Mobile Threat Defense is built into VMware Workspace ONE Intelligent Hub, supporting customers by making activation of Mobile Threat Defense simpler, and protecting users no matter where and how they work.
Now, customers will also be able to enable Phishing and Content Protection, coming soon as a Beta release.
Phishing is the number one threat on mobile devices according to Verizon’s Business 2022 Data Breach Investigations Report, and Mobile Threat Defense with included Phishing and Content Protection helps protect users while still providing the best experience for employees.
Wed, 09 Nov 2022 18:06:00 -0600en-UStext/htmlhttps://it-online.co.za/2022/11/10/vmware-updates-anywhere-workspace/Killexams : Technicity West 2022: Improving municipal services with data
Yesterday, a panel of tech leaders moderated by Mai Nguyen, head of government relations and public policy at VMware Canada, convened at the second annual Technicity West virtual event to share their insights on the role of information technology in boosting digital transformation and sustainability in city infrastructure and the delivery of municipal services.
In Medicine Hat AB, panelist Marty Robinson, the city’s chief information officer (CIO) explained, insights captured by its automated metering system from sensors monitoring space utilization, traffic, parking and occupancy rates, create databases that help drive faster investment decisions on how to optimize space and energy utilization.
Mike Palmer, CIO of the City of Victoria B.C., affirmed that real-time data generated from Internet of Things (IoT) devices such as smart traffic counters and lights, parking sensors, fleet management, and transit scheduling data, allows city planners to spearhead better road network planning, lower operational costs, and help vehicles save on fuel costs.
In turn, that data “feeds back to the people,” who can plan ahead for parking or traffic, but also gauge their own energy footprint, explained Mario Lebar, CIO of the University of Manitoba. He added that the data shows people “they’re making a contribution to what can sometimes be seen as an overwhelming goal.”
“I think that [data] can be really compelling for people,” added Lebar. “It could really show people that if I make some of these choices, individual choices, and we all do that together, I think there’s some real potential there for building community and for making progress. And I think big data, if we can get it organized in the right way, can facilitate that.”
Efficient use of existing assets is also instrumental to building smart infrastructure, the panelists affirmed.
“When you are looking at that kind of scale, you’re not going to go out and find $350 million to redo everything. So you have to be smart about it, make good investments, and stretch the asset where you can and replace it where you have to.” said Lebar.
Municipal asset management systems are maturing, Palmer agreed, as the data gathered is helping promote cost savings for inspections and maintenance services, necessary when municipalities must maintain and enhance rather than throw away the existing infrastructure.
Furthermore, Robinson acknowledged, big data is improving governance and accountability to citizens in Alberta. “With provincial governments pulling back funding or basically either forcing the municipalities to raise taxes or reduce services, we need to find ways to do it better. The idea is, if we can be more efficient and effective with managing our assets, using big data that’s flowing from the assets or through the workflows on the maintenance side of things, I think we can sort of create a better mousetrap at the end of the day for how the city is run.”
Building tools to allow citizens to interact digitally with municipal actors is also key for the City of Medicine Hat, said Robinson. “We’re learning that there’s a large percentage of people that want to interact in that [digital] way; they don’t want to walk into City Hall. And they certainly don’t want to pick up the phone and talk to somebody.”
Wed, 07 Dec 2022 09:32:00 -0600en-UStext/htmlhttps://www.itworldcanada.com/video/technicity-west-2022-improving-municipal-services-with-dataKillexams : VMware vows to fight 'cloud chaos' with a solution for every problem
The central theme running through VMware Explore Europe 2022 was delivering 'cloud smart' by fighting ‘cloud chaos’. Talk to someone from the firm, and they’ll tell you this is simply the next step in the company’s evolution.
In the seemingly distant past, companies contended with procurement sprawl; after this, it was server sprawl. Today, the company seeks to tackle the burden of cloud silos, and its big bet on managing this crucial struggle is as much a call for a cultural shift as it is for the adoption of its trademark solutions, with a greater emphasis on data insights to drive strategy.
For every solution, there's a problem
The mission permeates any number of VMware’s big announcements, from advances in its Sovereign Cloud — a headache especially for European customers — to the challenge businesses have in lowering energy costs. A cultural shift is also leaking in through the firm's expansion of its hybrid cloud partnership with HPE, with a 'pay-as-you-go' unified cloud solution available through a consumption model. It's the kind of flexibility that VMware promises, and the move to consumption echoes the intelligent automation firm Laiye's predictions that the subscription model has five years left.
As far as sustainability goes, the company hopes to empower customers to measure their energy consumption through the new Green Score feature in Aria Cloud, and includes its use of machine learning (ML) at data centres to optimise workload in a list of measures that have helped it save around 1.2 billion tons of carbon since 2002.
On several metrics, VMware appears to be indicating the ball is firmly in the court of its customers. There’s a tool for (almost) every problem, but, of course, these can be only solved if there’s an equal desire among users to fix these problems in the first place.
Framed in this way, VMware’s calls for improvements in areas such as sustainability at least appear destined for success. Evidence repeatedly shows that many companies in the sector consider reducing their energy consumption a top priority, such as exact Gartner research which showed sustainability is the key strategic trend for 2023. The drive comes amidst VMware’s prediction of a 200% increase in energy usage in the near future, accelerated by the adoption of the likes of 5G.
Other VMware solutions such as VMware Carbon Black XDR, which the company has unveiled to fight the threat of lateral attacks facilitated by an overbearing focus on endpoint security over observability between silos, seem to be progressing slower than desired.
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Joe Baguely tells IT Pro that lateral security, effectively the same concept as ‘east-west’ security, is a problem over which VMware has been banging the drum for more than a decade. The failure of the sector to progress much in this space in the years since its
The problem with having the solution to a problem that your customers don’t see as a problem is the struggle can’t be solved through the quality of a product. Let there be no doubt: the overriding sense among customers at VMware Explore Europe was the company is always willing to address their concerns. But the success of many new products may hinge on communication. As VMware's VP of marketing tells IT Pro, the company, internally, is extremely pleased with the work its product teams have done, with success now hinging on convincing customers they have problems that need to be addressed.
Change in the name, change in the game
A much-repeated phrase throughout the conference was “we’ve changed”, mostly delivered light-heartedly in reference to the conference's branding change from VMworld to VMware Explore. Delving beneath the surface, though, it’s clear there's been a more profound shift in the company’s strategy.
“Ten years ago, we were taught that VMware’s focus is, we abstract, pull, and automate,” Ed Hoppitt, senior director apps and cloud platforms at VMware, tells IT Pro. “So we abstract away from physical hardware, we pull the abstracted resources together, we automate their deployment. Nothing’s really changed. We're abstracting from across multiple clouds, as opposed to multiple servers, we're able to pull the resources of the servers, and the XPUs, and the chassis, and we're able to automate their deployment.
“I'll be honest, sending the ESX wasn't hard, right? It was a mono-product company, and it was ‘for every dollar you invest with us, you’re going to save ten.’ What’s happened is our portfolio has got bigger, and our nuanced relationship with customers has changed. We're now getting to spend much more time with customers, understanding our customers much more intimately.”
Hoppitt directly aligned adopting a software as a service (SasS) model with allowing the company to more directly cater to customer needs. There's no doubt that, among customers, the mood is high but, remarkably, this buoyancy is also mirrored externally.
“I think overall, VMware’s portfolio is now much better segmented and over the course of this year they've done a lot to reposition the products into much more sensible settings and categories,” says Bola Rotibi, chief of enterprise research at CCS Insight, in conversation with IT Pro. “I think it's a much more structured portfolio and I think, actually, it does address a lot of the issues that organisations, especially particular enterprise organisations across the market landscape, are concerning themselves with.”
What does the Broadcom acquisition mean for VMware's future?
Infrastructure giant Broadcom’s $61 billion acquisition of VMware has been approved by shareholders, and news of this broke on the first proper day of VMware Explore Europe. The deal had been confirmed by both companies in May, with questions raised around what this meant for company strategy going forward.
Any whispers of the deal on the conference floor were matched by an immediate, if brief, reference to the acquisition at the start of the keynote by Raghu Raghuram, VMware CEO: “Once the acquisition is completed, VMware will become the software arm of Broadcom.”
For the assembled press, this opened the sluice gates for a series of Broadcom questions at the press conference, all directed at Raghuram. “It’s up to Broadcom to structure its company once closed,” replied Raghuram.
“Ultimately, they will have the final word on it. What [Tan Hock Eng, CEO at Broadcom] said at the time the acquisition was announced, is what I spoke about today, which is Broadcom will broadly have two businesses. A microconductor business, which they historically have, and a software business, and all the software businesses will be under the VMware brand.”
Having broken away from Dell in 2021, Raghuram said VMware was uniquely positioned to become “the Switzerland of the cloud industry,” maintaining an independent and close relationship with its customers and partners. Now, after around a year, VMware is falling back into the ownership of another company; how ‘hands-off’ Broadcom will be with the company remains to be seen.
VMware becoming a brand that encompasses all Broadcom software offerings could make or break the company. If it’s simply the sum of its parts, a provider of siloed tools for business use cases, the deal should matter little to customers and partners alike. But, having fought so hard to ‘change’, and acquire the positive reputation it enjoys today, VMware may well fight to keep its brand from diluting as it takes charge of assets like Symantec and CA.
In the same way that its solutions rely on communication as much as technical ability these days, its commitment to maintaining customer relationships and holding the lead on clear product messaging will be the real measure of its success in the years to come.
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Tue, 29 Nov 2022 01:18:00 -0600entext/htmlhttps://www.itpro.co.uk/business/business-strategy/369500/view-from-the-airport-vmware-explore-europe-2022Killexams : VMware says its SD-WAN client makes remote-access VPNs unnecessary
VMware is prepping client software for individual devices to connect to its SD-WAN services without the need for remote-access VPNs.
Aimed at the work-from-home or hybrid worker, the company will launch VMware SD-WAN Client software that provides secure access to PCs and mobile devices, and provides management, visibility, and policy support as if they were in the office. When it becomes generally available in the spring, it will include versions for Windows, Mac, Linux, iOS, and Android and be bundled with the VMware SD-WAN package.
“Post pandemic secure remote access is obviously important, and all of the challenges that led IT to deploy SD-WAN in the first place, like simplicity of management at scale, automation, visibility, and network error correction, are amplified as people work from home,” said Craig Connors, vice president and general manager of SASE Business at VMware. “The software client will bring all of that SD-WAN technology right to your desktop or mobile phone and leapfrog legacy remote access VPNs via a cloud-native, cloud-delivered package.”
VMware SD-WAN Client can replace VPN hardware, create secure tunnels and set up a high-performance private network fabric between servers, clouds, and remote workers’ desktop or mobile devices, Connors said.
VMware announced that to accelerate development of the client, it has acquired Ananda Networks.
The client will integrate with VMware’s Edge Network Intelligence platform, which provides IT-actionable data on network traffic and application performance from the cloud, to branch offices, to the end user, and across their wired and/or wireless devices, Connors said.
The client will expand VMware’s remote-access options as it offers its Workspace ONE users SD-WAN and SASE connectivity to securely manage end users’ mobile devices and cloud-hosted virtual desktops and applications from the cloud or on-premises. With Workspace ONE, a customer’s remote-access client automatically connects to the closest VMware SD-WAN cloud point of presence.
In addition to the client, VMware also expanded its SD-WAN offering to include:
Enhanced artificial intelligence support for its Edge Network Intelligence platform that lets VMware SD-WAN and SASE enterprises identify traffic patterns and offer better alternative network paths to the cloud and proactively notify operations teams to take remedial action.
A managed SD-WAN/SASE service called VMware Private Mobile Network will include its SD-WAN/SASE package along with its Edge Compute Stack, an amalgamation of new and existing software to run, manage, and secure edge apps across multiple clouds and at local and edge locations. Private Moblie Network will be delivered by service providers that VMware has not named yet.
16 new global points of presence for its its SD-WAN and SASE footprint. VMware and its partners offer more than 200 PoPs worldwide.
“This is a game-changer for everybody from the end customer all the way to HPE and VMware and partners,” said CPP Associates’ Michael Maher, director of professional services.
Hewlett Packard Enterprise and VMware are taking their long-standing partnership to the next level by fully integrating VMware Cloud with the HPE GreenLake pay-per-use on-premises cloud service.
As a result of the agreement, VMware Cloud can now be fully integrated with a single consumption and licensing model with HPE GreenLake. That includes VMware Cloud for HPE GreenLake for Private Cloud Enterprise.
“This is a game-changer for everybody from the end customer all the way to HPE and VMware and partners,” said Michael Maher, director of professional services for CPP Associates, one of HPE’s top GreenLake partners. “This is really important as more customers look at consumption-based solutions. It helps with budget, delivery and support. This is the ability to deliver a full private cloud on-demand with VMware Cloud and GreenLake. Now you can include licensing on a pay-per-use model across virtual servers, virtual desktops and containers. Now you can take the entire VMware suite and apply it to the pay-per-use model with GreenLake.”
The deal in one fell swoop dramatically expands the market for GreenLake with a fully integrated on-demand version of VMware Cloud on HPE GreenLake. “Before this you had to go out and get the VMware price quote and figure things out,” said Maher. “Now if you want to try VMware containers, VDI or NSX you have it fully integrated with GreenLake.”
The additional market opportunity is “massive” given what HPE and VMware call its installed base of more than “200,000 mutual customers,” said Maher.
“VMware is the market leader in virtualization for a very good reason,” he said. “In my opinion, it is the most mature, integrated and business-outcome-driven virtualization platform on the market. This is a big opportunity for HPE, VMware and the partner community. This strengthens VMware’s and HPE’s relationship with the partner community. This is huge.”
VMware CEO Raghu Raghuram, for his part, said in a press release that the extended partnership enables “customers to combine VMware’s state-of-the-art multi-cloud software with HPE GreenLake’s cloud operating model and consumption economics to support any workload on a modern hybrid cloud.”
HPE CEO Antonio Neri, meanwhile, said in a press release that the announcement represents the “next step in the expanding partner ecosystem of HPE GreenLake.
“Together, HPE and VMware will give organizations greater choice and flexibility with a fully integrated hybrid cloud offering designed to accelerate innovation and data-first modernization,” said Neri.
Steve Burke has been reporting on the technology industry and sales channel for over 30 years. He is passionate about the role of partners using technology to solve business problems and has spoken at conferences on channel sales issues. He can be reached at sburke@thechannelcompany.com.