VMware Q4 2013 Earnings Preview: 5 Partner Considerations
When VMware (VMW) announces Q4 2013 earnings on Jan. 28, hybrid cloud and virtualization partners should pay close attention. Here are five reasons partners should tune in.
First, a little background. When VMware announced the AirWatch buyout last week, the company disclosed some preliminary Q4 2013 results. At the time the company stated:
“Revenues for the fourth quarter are expected to be $1.48 billion, an increase of 15% from the fourth quarter of 2012. Excluding revenues attributable to Pivotal Software Inc. and all divestitures that occurred in 2013, revenues for the fourth quarter are expected to have increased 20% from the fourth quarter of 2012.”
CEO Pat Gelsinger will give deeper details on Jan. 28. The VAR Guy will be listening closely to learn more about…
1. Mobile Device Management and BYOB: VMware’s decision to buy AirWatch for $1.54 billion raised plenty of eyebrows. Some pundits think VMware is late to the MDM and BYOD game. But pay close attention, folks: AirWatch has a strong channel partner program. During the earnings call maybe VMware will provide some clues about how the new acquisition will empower partners and customers going forward.
2. End User Computing: VMware has made multiple EUC hires to help push its Horizon and Desktone technologies forward. A big Desktop as a Service (DaaS) push is coming — and cloud VDI is generating customer interest. But how soon can we expect partners to profit? The VAR Guy will listen closely for clues.
3. vCloud Hybrid Service Expansion: VMware’s answer to Windows Azure and Amazon Web Services continues to gain new capabilities — including Microsoft SQL Server. But how much revenue is the fairly new service generating? And how many partners are plugging into the service? Hmmm…
4. Technical Leadership: New CTO Ben Fathi will need to connect the dots between home-grown technology and acquired businesses (AirWatch, Desktone). Can the company deliver a singular vision with so many offerings in its portfolio? Hmmm…
5. Hyper-V Competition?: Microsoft’s Windows Server had a strong showing in the company’s latest quarter. But is Hyper-V — bundled with Windows Server — really pressuring VMware’s core virtualization business? The VAR Guy suspects VMware is doing just fine. Stay tuned.
6. Bonus Question: VMware Partner Exchange 2014: The company’s partner summit is set for early February 2014. It’s a safe bet CEO Pat Gelsinger will offer a few teasers during the Jan. 28 earnings call.
Stay tuned, folks. The VAR Guy promises to offer some timely updates during and after the earnings call.