Subj : VMware revenues appear to plummet, but Broadcom says everything i
To   : All
From : TechnologyDaily
Date : Thu Jun 13 2024 12:00:06

VMware revenues appear to plummet, but Broadcom says everything is fine

Date:
Thu, 13 Jun 2024 10:54:47 +0000

Description:
VMware seems to report significant drop in quarterly revenue, but Broadcoms 
CEO says thats not the full picture.

FULL STORY
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VMwares quarterly revenue fell by $600 million in its first full quarter 
under Broadcoms ownership, according to its recent Q2 2024 earnings call - 
but the company has reassured customers it is not a serious issue. 

During the earnings call, Broadcom CEO Hock Tan confirmed that VMwares 
revenue had fallen to $2.7 billion, down from $3.28 billion in the previous 
quarter. 

However, Tan indicated that the quarterly results were nothing to worry 
about, acknowledging the challenges faced by the business in recent months 
but sharing positive insights about the future of VMware. VMware revenues 
plummet 

Tan emphasized the transition of VMware products to subscription-based 
models, with 3,000 of VMwares largest 10,000 customers signing multi-year 
deals. 

Annualized booking values, reflecting commitment to long-term contracts, 
increased from $1.2 billion last quarter to $1.9 billion in the last three 
months. 

Following months of significant policy and pricing changes, and a shakeup to 
the broader VMware portfolio, dissatisfied customers took to the internet to 
complain about Broadcom. A handful of the companys execs even took to the web 
themselves in an attempt to pacify customers. 

Although the frustration appears to continue, the reality is that many VMware 
customers are set to stay with Broadcom, as illustrated by a CloudBolt 
Software study . 

Just this week, it was also confirmed that Dell had resigned its contract 
with VMware after terminating a distribution deal it had with the 
virtualization giant in the early days of its Broadcom takeover. 

More broadly, VMware looks to be in good hands. California-headquartered 
Broadcom reported a quarterly revenue of $12.5 billion, up a staggering 43% 
year-on-year. 

Tan summarized: Broadcom's second quarter results were once again driven by 
AI demand and VMware. More from TechRadar Pro These are the best cloud 
hosting providers around today Weve rounded up the best small business 
servers on offer right now VMware customers are jumping ship as Broadcom 
sales continue - here's where they're moving to



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Link to news story:
https://www.techradar.com/pro/vmware-revenues-appear-to-plummet-but-broadcom-s
ays-everything-is-fine


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