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VMware continues to be the hero in 2006: >100% revenue spike!



For EMC, for us (for me) and a lot of users (be it developers, admins, testers, QA engineers, creative people and myth busters*). As Toomre reports...

Frequently, key applications supporting each of these areas are deployed on one or more additional servers stored in some out-of-sight data center. For those business applications critical for the operation of a product or functional area, a similar number of servers are deployed in a back-up data center facility to stand ready in case of business interruption. This has resulted in a shift from what some describe as scaled-up environment (centralized mainframe centric) to what often is an enormous scaled-out structure (server centric). In fact, some Chief Technology Officers ("CTOs") laugh about the difficulty in trying to nudge the door open to their data centers because those centers are so jammed with servers, communication gear and cooling equipment.


Really its time to stop laughing and take those ailing, screaming datacenters to a new plane of existence.

VMware grew revenue 101% in 2006 to $709 million. VMware spokesmen attributed the growth primarily to its Infrastructure 3 suite of virtualization software, which provides tools to manage multiple brands of virtual machines, as well as VMware's ESX Server and Virtual Server products.

VMware reported that 43% of its customer base had adopted Infrastructure 3, which includes Virtual Center for remotely managing multiple virtual machines and VMotion, which moves running virtual machines from one physical server to another.

The emphasis on Infrastructure 3 has prompted a shift away from selling just virtual machine software into selling management software. Eighty percent of VMware's revenues now come from the latter category, said Joe Tucci, EMC chairman and CEO. Most VMware customers plan to virtualize 50% of their IT infrastructure within three years, he said. Virtualization in data centers is moving beyond server consolidation into additional phases, such as virtualized test and development machines, disaster recovery, and other forms of more efficient operations.

As the fastest growing unit of EMC Corp., VMware's strong fourth quarter yielded $232 million in revenue. Its growth helped fuel EMC total revenues of $3.2 billion for the quarter, a total that was $55 million more than EMC's forecast in October.


Reported by InformationWeek

Really Joe Tucci is surely a happy man, heck I'd be jumping up and down too (in joy) , if I were in his place :)

2007, 2008 will be even more exciting years, I can bet you that!

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