Enterprise IT Watch Blog

Jan 26 2011   6:45AM GMT

VMware’s Record Q4: A good omen for desktop virtualization?

Melanie Yarbrough Profile: MelanieYarbrough

Virtualization hulk VMware closed out 2010 with a bang, reporting a 37.4 percent increase in revenues at $835.7M, and a 212.5 percent increase in net income at $119.9M.

Desktop products such as VMware’s View and the Workstation hypervisor accounted for 10 percent of revenues for the full year in the United States, a possibly deceptive figure in the face of the prevailing hope that 2011 will be a big year for desktop virtualization, particularly virtual desktop infrastructure. VMware’s chief financial officer, Mark Peek, didn’t make any predictions in that arena, but TechTarget’s own virtual desktop experts Brian Madden and Gabe Knuth took a stab at foretelling desktop virtualization trends in the coming year, marking VMware’s Horizon as a major competition for Citrix’s OpenCloud Access.

VMware as a whole is projecting modest growth in 2011, between $800 and $820M for Q1. Acquisitions were a major part of VMware’s 2010 strategy, with seven in total, adding upwards of 600 employees. VMware finished off the year with around 9,000 employees worldwide, up from 7,000 at the start of the year.

With pre-installation of vSphere on servers from big name hardware makers such as HP, Dell, and IBM, VMware is in good standing for a strong 2011.

What are your predictions for desktop virtualization in 2011? Do you think VMware will continue to reap the benefits?

Melanie Yarbrough is the assistant community editor at ITKnowledgeExchange.com. Follow her on Twitter or send her an email at Melanie@ITKnowledgeExchange.com.

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