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VMware Focus Shifting To Network Virtualization In 2013


Written by  Harpreet | 29 January 2013
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After a record fourth quarter earnings report, VMware is all set to focus on a future comprised of hybrid cloud services, software-defined data center and end-user computing. The company's CEO Pat Gelsinger told analysts that the company will focus on these key areas instead of other fields in its current portfolio.

During the earnings call, Gelsinger mentioned that the company now understands the real importance of prioritization and execution. Gelsinger, who joined VMware just five months back, added that the company will now focus on rationalization of its portfolio around products that its customers love. He noted that the company now needs to commit to their cloud application services. VMware will realign its resources as it looks to scale in 2013.

VMware's Pivotal Initiative is set to provide cloud and big data applications, based on VMware and EMC. The initiative will make use of VMware's Cloud Foundry platform as a service (PaaS), Cetas big data resources, VFabric Java Framework. It will also use up the agile development experience from EMC. The company acquired SlideRocket in 2011. The slide presentation software was expected to complement Zimbra productivity software, which was earlier acquired by VMware from Yahoo. Gelsinger was tight lipped on specifying areas that will see a cutback this year. However CFO Jonathan Chadwick claimed that Sliderocket is most likely to be on the backseat.

VMware is also looking at cutting about 900 jobs. Gelsinger announced that the company had added 6,700 people over a period of three years as the company still looks to invest in its growth. The CEO added that he expects to close this financial year with hiring more people in the key focus areas for 2013. The company topped the fourth quarter earnings report with a profit of $206 million, up from $200 million last year. Revenue saw a growth of 22% from last year to $1.29 billion with a net income at 81 cents a share.

The market leader in server virtualization, VMware is now looking to stretch its arms while ensuring it takes a safer route by focussing on areas that are potentially rewarding. The company now faces the heat of competition from Microsoft's Hyper-V and some other open-source alternatives. Moving to network virtualization is one step towards blowing off the competition and heading towards a profitable next quarter. The company is also looking at acquiring Nicira to aid its shift towards network virtualization.

After a record fourth quarter earnings report, VMware is all set to focus on a future comprised of hybrid cloud services, software-defined data center and end-user computing. The company's CEO Pat Gelsinger told analysts that the company will focus on these key areas instead of other fields in its current portfolio. The CEO made this announcement during the company's fourth quarter earnings report on Monday night. During the earnings call, Gelsinger mentioned that the company now understands the real importance of prioritization and execution. Gelsinger, who joined VMware just five months back, added that the company will now focus on rationalization of its portfolio around products that its customers love. He noted that the company now needs to commit to their cloud application services. VMware will realign its resources as it looks to scale in 2013.

VMware's Pivotal Initiative is set to provide cloud and big data applications, based on VMware and EMC. The initiative will make use of VMware's Cloud Foundry platform as a service (PaaS), Cetas big data resources, VFabric Java Framework. It will also use up the agile development experience from EMC. The company acquired SlideRocket in 2011. The slide presentation software was expected to complement Zimbra productivity software, which was earlier acquired by VMware from Yahoo. Gelsinger was tight lipped on specifying areas that will see a cutback this year. However CFO Jonathan Chadwick claimed that Sliderocket is most likely to be on the backseat.

VMware is also looking at cutting about 900 jobs. Gelsinger announced that the company had added 6,700 people over a period of three years as the company still looks to invest in its growth. The CEO added that he expects to close this financial year with hiring more people in the key focus areas for 2013. The company topped the fourth quarter earnings report with a profit of $206 million, up from $200 million last year. Revenue saw a growth of 22% from last year to $1.29 billion with a net income at 81 cents a share.

The market leader in server virtualization, VMware is now looking to stretch its arms while ensuring it takes a safer route by focussing on areas that are potentially rewarding. The company now faces the heat of competition from Microsoft's Hyper-V and some other open-source alternatives. Moving to network virtualization is one step towards blowing off the competition and heading towards a profitable next quarter. The company is also looking at acquiring Nicira to aid its shift towards network virtualization.

Harpreet

Harpreet

Harpreet is a technology journalist based in India. He currently writes on Mobile, Technology and Startups. He is an avid reader and a passionate writer. Prior to ToolsJournal, Harpreet used to write for a major English news daily.

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