Fri, May 6, 1:23 AM
- More than four years after EMC and VMware (NYSE:VMW) put various app development tool, cloud app platform (PaaS), and big data/analytics hardware and software assets into a spinoff called Pivotal - both companies still own large stakes - Pivotal has raised $253M in a Series C funding round valuing the company at $2.8B. (PR)
- Microsoft, GE, and Ford took part in the round, as did EMC and VMware. Back in 2013, GE spent $105M to buy a 10% Pivotal stake. Pivotal says it will use its new funds on R&D, including to create offerings tailored for various verticals.
- Pivotal had Q1 revenue of $83M (+56% Y/Y) and an op. loss of $58M. Re/code reported last November Pivotal is mulling an early-2016 IPO. It now looks as if Pivotal (with some outside help) will be staying private for a while longer.
Wed, Apr. 20, 12:45 PM
Wed, Apr. 20, 9:15 AM
Tue, Apr. 19, 5:39 PM
Tue, Apr. 19, 4:30 PM
- VMware (NYSE:VMW) has jumped 4.1% after growing revenue and beating expectations in its Q1 report, along with authorizing at $1.2B buyback.
- License revenues dipped slightly but increased 1% when considered in constant currency.
- Revenue breakout: License, $572M (down 0.7%); Services, $1.02B (up 8.8%).
- "We continue to see momentum across our portfolio of growth products and businesses, including NSX, Virtual SAN and End-User Computing," says CEO Pat Gelsinger.
- Operating cash flows were $720M; free cash flows were $679M. Cash and equivalents were $8.25B, and unearned revenues at $4.98B, as of quarter's end.
- Conference call to come at 5 p.m ET.
- Press Release
- Now read Don't Believe Everything You Read About Cloud Adoption »
Tue, Apr. 19, 4:17 PM
Mon, Apr. 18, 5:35 PM
Tue, Mar. 1, 9:34 AM
- Carl Eschenbach, VMware's (VMW -0.8%) COO since 2012, has resigned to "pursue a new career opportunity." The news comes a month after VMware announced CFO/COO Jonathan Chadwick is leaving, and that EMC CFO Zane Rowe will be the company's new CFO.
- Maurizio Carli, formerly VMware's Americas field organization, has been promoted to EVP of worldwide sales. Ray O'Farrell, only six months removed from being named CTO and chief development officer, will now also be responsible for VMware's global services and customer advocacy, a promotion said to gave him "purview over VMware's entire customer product experience." Sanjay Poonen, head of VMware's end-user computing (PC viirtualization/enterprise mobility) ops, will now also head the company's marketing and communications ops.
- The shakeup comes with VMware facing major top-line pressures in its core vSphere/ESXi server virtualization business, and with Dell set to acquire parent EMC.
- Last week: VMware's networking/security chief leaving; Broadcom vet hired to replace
- Update: Fortune reports Eschenbach is joining VC firm Sequoia Capital. Piper Jaffray, reacting to today's news: "Eisenbach had been with VMware since June 2002 and was responsible for sales and customer operations. We think other departures may be on tap."
Wed, Feb. 24, 6:46 PM
- Martin Casado, head of VMware's (NYSE:VMW) Networking and Security software unit and before that one of the founders of (VMware-acquired) SDN software provider Nicira, is leaving the company to become a partner at major VC firm Andreessen Horowitz.
- Replacing Casado is Rajiv Ramaswami, formerly the head of chipmaker Broadcom's Infrastructure & Networking Group and before that GM of (VMware SDN rival) Cisco's Cloud Services and Switching Technology Group.
- VMware's NSX SDN/networking virtualization software platform, which has its roots in software developed by Nicira, has been seeing strong growth. The company stated on its Q4 call its NSX annual bookings run-rate has topped $600M, an increase of 3x from a year earlier.
Mon, Feb. 22, 2:31 PM
- IBM (IBM +0.2%) and VMware (VMW +1.5%) say they will partner to help companies move more easily into the cloud through a plan to deliver VMW’s software-defined data center architecture on IBM Cloud.
- The move would enable businesses to migrate existing IT workloads via VMW’s virtualization software without the need to modify them, which companies have described as a key barrier to cloud migration.
- The two companies also will collaborate on marketing and selling new offerings for hybrid cloud deployments, including seamless workload migrations, disaster recovery, capacity expansion and data center consolidation.
- IBM Cloud senior VP Robert LeBlanc tells WSJ that ~80% of enterprise clients are looking for this kind of hybrid cloud strategy, saying “We’re moving to the next phase of the cloud. This is going to accelerate that shift.”
Thu, Feb. 11, 3:03 PM
- Dell had hoped to price on Wednesday the first $10B of debt it needs to raise to finance its $67B purchase of EMC (EMC -1.3%), but credit markets being what they are at the moment, the JPMorgan-led consortium of bankers needs another ten days to get the deal done, reports the NYPost.
- Troubled equity markets are also an issue. Dell had hoped to raise $5B through the sale of its Perot Systems, but supposed front-runner Atos dropped out of the bidding after a big decline in its stock price.
- Dell remains confident its purchase will close by October, but is on the hook for a $4B breakup fee if it can't make good on the acquisition.
- The terms are for EMC owners to get $24.05 per share in cash, plus a VMWare (VMW +0.2%) tracking stock.
Tue, Feb. 9, 7:25 PM
- VMware (NYSE:VMW) has added Tony Bates, currently GoPro's President and formerly Skype's CEO and Microsoft's business development chief, to its board.
- Donald Carty, formerly Dell's CFO and AMR/American Airlines' CEO, has also joined the board. Carty has been an EMC director since Jan. 2015. (VMware's board bio page)
- Separately, VMware has updated its Horizon desktop/app virtualization platform and Horizon Air hosted desktop virtualization platform. New features include the ability to provision 2,000 desktops in under 20 minutes, a display protocol supporting GPU offloading, and improved app management and IT security tools. In addition, Horizon Air now supports a hybrid mode that pairs a cloud-based management software layer (hosted by VMware) with on-premise infrastructure for delivering virtual desktops.
- Also: VMware has unveiled Workspace One, a solution for managing, deploying, and securing user iOS, Android, and Windows devices and apps. Features include single-sign on, the ability to self-configure devices for enterprise use, and secure e-mail, calendar, content, and chat apps.
- While its standalone server virtualization sales have been falling, VMware's end-user computing (EUC) software ops have been a strong point. EUC license bookings rose 20% Y/Y in Q4 and over 30% in 2015. VMware stated on its Q4 call (transcript) its EUC license bookings "could surpass that of our nearest competitor" (presumably Citrix) in 2016.
Wed, Jan. 27, 3:29 PM
- "We have a binding, solid merger in place," said EMC (EMC -1.2%) CEO Joe Tucci on his company's Q4 earnings call, insisting Dell's acquisition of EMC will occur in spite of the decline seen in both EMC shares and the value of EMC's 80% VMware (VMW -9.3%) stake. "We are confident we’ll meet contractual terms. There are significant penalties in place both ways if this doesn’t happen ... The banks have told us they can raise the money."
- With all eyes on the Dell deal, EMC didn't bother providing formal guidance in its Q4 report. The company's core Information Infrastructure unit saw revenue drop 4% Y/Y in Q4 to $5.07B (-1% exc. forex), with Information Storage sales dropping 4% to $4.65B.
- Exec David Goulden: "Customers are buying ‘just enough’ and ‘just in time’ for their traditional environments." Cloud storage adoption and the growth of upstarts such as Nutanix and Pure Storage have been weighing on sales.
- VMware, meanwhile, has been downgraded to neutral ratings by Baird and Summit Research in response to its soft Q1/2016 guidance (was accompanied by a Q4 beat, a job cut announcement, and news of CFO/COO Jonathan Chadwick's departure). Summit's Srini Nandury: "While the billings will likely be better, we do not expect license revenue growth to return to mid-single digits until middle of next year."
- Pac Crest's Rob Owens (Sector Weight rating): "Emerging businesses showed some bright spots, but the core compute business remains a large portion of the revenue mix, which sets up 2016 for declines in growth. Investor concerns also are likely to persist over the Dell acquisition and the issuance of a tracking stock. We wait for signs of stabilization before becoming more constructive on shares.”
- Weak sales for VMware's core vSphere/ESXi server virtualization platform continue weighing: On its earnings call (transcript), VMware stated compute license bookings (server virtualization) fell by a low-double digit % Y/Y in Q4, and forecast declines will continue. Management license bookings, which include cloud management, the NSX SDN/network virtualization platform, and the vSAN storage virtualization platform, rose by a low-teens %.
- End-user computing license bookings (PC virtualization/enterprise mobility) were a strong spot, rising over 20% Y/Y. The NSX annual bookings run-rate is now above $600M (up ~3x from a year ago), and the vSAN run-rate "well over" $100M.
- EMC: Q4 results, earnings release. VMware: Q4 results, earnings release.
Wed, Jan. 27, 9:22 AM
Tue, Jan. 26, 5:51 PM
- VMware (NYSE:VMW) has guided on its earnings call for 2016 revenue of $6.8B-$6.9B and EPS of $4.07-$4.16, below a consensus of $7.21B and $4.20. Q1 EPS guidance of $0.83-$0.85 is below a $0.92 consensus.
- Initially up after hours in response to VMware's Q4 beat, shares have now fallen to $46.09, making new 52-week lows in the process. The results/guidance have been accompanied by news CFO/COO Jonathan Chadwick is leaving (he'll be replaced as CFO by EMC CFO Denis Cashman) and that the company is cutting 800 jobs (100 less than previously reported).
- Parent EMC, whose shareholders are due to receive a VMware tracking stock as part of their Dell acquisition payout, is down 1.8% after hours to $23.86 ahead of tomorrow morning's Q4 report.
Tue, Jan. 26, 4:26 PM
- VMware (NYSE:VMW) uses its Q4 report to state CFO/COO Jonathan Chadwick "has decided to leave VMware and expands his advisory roles, working with a number of companies as a non-executive board member."
- He'll be replaced as CFO (but not COO) by EMC CFO Zane Rowe. EMC vet Denis Cashman is the storage giant's new CFO.
- VMware is higher in response to its Q4 beat; license revenue rose 6% Y/Y, towards the high end of a 3%-7% guidance range. EMC is up 0.6% after hours. VMware typically provides guidance during its earnings call (starts at 5PM ET).
- VMware's Q4 results, earnings release
- Update: VMware has also confirmed its rumored job cuts. 800 positions will be eliminated, slightly less than the 900 previously reported. A $55M-$65M charge is expected. (8-K filing)
VMware, Inc. provides the development and application of virtualization technologies with x86 server-based computing, separating application software from the underlying hardware. Its virtualization infrastructure solutions, which include a suite of products designed to deliver a... More
Industry: Technical & System Software
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