VMware revenue up 9% thanks to license and emerging solutions

VMware at Mobile World CongressVMware said its revenue was $2.03 billion (+9 percent) in the fourth quarter of 2016 and $7.09 billion (+8 percent) in 2016.

“We’re pleased with our strong product momentum and customer enthusiasm for our Cloud strategy. We have the world’s most complete and capable hybrid cloud architecture, offering customers freedom and control in their infrastructure decisions,” said Pat Gelsinger, chief executive officer of VMware.

TBR, in its analyst note, said reaccelerated license growth and emerging products momentum propelled VMware to a strong 2016 finish.

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VMware achieved revenue growth from emerging solutions such as NSX, AirWatch and VMware’s recently launched Cloud Foundation for hybrid cloud.

The technology vendor experienced a bounceback in licence growth, which grew nearly 8 percent year-to-year after 3 quarters of flat-to-declining growth to start 2016. Adoption of emerging products and vSphere’s growing importance as part of VMware’s hybrid cloud strategy propped up license growth in the quarter. “The vendor noted that the majority of license bookings came from solutions outside of VMware’s compute offerings,” said Sanjay Medvitz, analyst at TBR.

NSX acceleration proved to be the most notable theme of VMware’s Q4 earnings, growing both in customer usage and value across VMware’s portfolio.

The cloud technology vendor notched its largest NSX only deal, which surpassed $10 million in Q4 2016 and also posted a $1 billion run rate for NSX bookings. NSX customer count doubled from a year-ago reaching over 2,400 in Q4 2016.