This week VMware reported 2013 third quarter results, with Q3 revenues growing 14 percent year-over-year to $1.29 billion. Excluding pivotal and other divestitures, total revenues grew at a rate of 19 percent year-over-year. In the earnings call, CFO Jonathan Chadwick noted “We are seeing strong customer demand for new solutions such as the software-defined data center, and I’m excited about our prospects for the remainder of 2013 and beyond.”
Sruthi Ramakrishnan of Reuters reports on VMware’s earnings commenting that the company reported higher-than-expected results. Sruthi forecasts even stronger growth in 2014. Additionally, Bloomberg’s Dina Bass reports the Q3 earnings exceeded analysts’ expectations and The Register’s Jack Clark reports that customer growth was a key factor in the quarterly results.
The Q3 results and complete investor information is available at ir.vmware.com.
This week, ComputerWeekly.com’s Jennifer Scott explains why large enterprises will be the first to benefit from software-defined networking. In the article, Patrick Zhang of Huawei’s enterprise business group notes that Huawei has already seen five large firms sign contracts to deploy SDN-enables switches to their campus networks and SDN will immediately make an impact on enterprise environments, even if technical standards had not been completed.
Brandon Butler at Network World reports from Cloud Connect in Chicago on “How the Cloud is Blowing Up the Network.” In the article Eric Hanselman from the 451 Group commented, "Virtualization, and especially cloud, significantly alter[s] traditional networking approaches. If the network doesn't update with the adoption of new technologies like cloud computing, the entire system can be flawed."
Shivani Shinde Nadhe of Business Standard reports that cloud computing will become the bulk of new IT spending by 2016. Ed Anderson, research director at Gartner is quoted as saying, “Cloud computing continues to grow at rates much higher than IT spending generally. Growth in cloud services is being driven by new IT computing scenarios being deployed using cloud models, as well as the migration of traditional IT services to cloud service alternatives. Segments such as software as a service (SaaS) and infrastructure as a service (IaaS) have even higher projected CAGR growth rates of 34.4 percent and 39.8 percent.”
Rebecca Merrett of CIO covers on a new report from Gartner predicting that instead of battling with public and private cloud trade-offs, more organizations are turning to a hybrid cloud model. The research firm predicts almost half of large enterprises globally will have deployed hybrid cloud by the end of 2017, with 2016 being a “defining” year where they will start to move away from private into hybrid.
Wired contributor Nikolaus Kimla describes the future of cloud computing and how it will affect corporate environments down the road in his article “Cloud Computing and the Brave New World.” Nikolaus writes “The advent of the cloud is bringing about a new corporate environment in which there is no office. Everyone is working remotely from their own locations and the physical building is a thing of the past.” The article offers an interesting set of predictions on how cloud computing will create a “new mode of conducting business.”
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