VMware revenues increase 9% in fiscal 2021

VMworld
The company has appointed a special committee of independent directors who are evaluating a spin-off of VMware from Dell Technologies. (FierceTelecom)

VMware reported that its revenue for its fiscal fourth quarter 2021 was $3.3 billion, an increase of 7% from the fourth quarter of fiscal 2020.

The combination of subscription, SaaS and license revenue was $1.7 billion, an increase of 8% from the fourth quarter of fiscal 2020. While subscription and SaaS revenue alone for the fourth quarter was $707 million, an increase of 27% year-over-year.

Non-GAAP net income for the fourth quarter was $936 million, or $2.21 per share, up 8% per share compared to $868 million, or $2.05 per share, for the fourth quarter of fiscal 2020.

For the full fiscal year 2021, VMware reported revenue was $11.8 billion, an increase of 9% from fiscal 2020. And Non-GAAP net income for fiscal year 2021 was $3.0 billion, or $7.20 per share, up 15% per share compared to $2.7 billion, or $6.24 per share, for fiscal 2020.

For its fiscal 2020 guidance, VMware expects total revenue of approximately $12.700 billion or a growth rate of 8%.

Zane Rowe, VMware’s chief financial officer, is also acting as VMware’s interim CEO since the departure of Pat Gelsinger earlier this year. Gelsinger is still a VMware board member.

RELATED: Swan out, Gelsinger in as Intel's new CEO

During the quarter, VMware announced an expansion of its partnership with Accenture, which launched a dedicated VMware business unit that will bring together about 2,000 professionals across a variety of industries with expertise in hybrid cloud and cloud migrations, cloud-native and application modernization, as well as security.

Also during the quarter, VMware formed a joint innovation lab with Lumin to drive edge computing, security and secure access service edge (SASE) for customers in a number of industries.

RELATED: Lumen, VMware team up on innovation lab to drive edge computing, security and SASE

During the fourth quarter, the company also saw growth in Tanzu, which is its cloud-native, container-based platform. 

RELATED: VMware throws down the gauntlet on Kubernetes with Tanzu platform

The company has appointed a special committee of independent directors who are evaluating a spin-off of VMware from Dell Technologies.

Virtualization at telcos

Raghu Raghuram, VMware’s chief operating officer for products & cloud services, talked a bit about virtualization at telcos.

“We've also pointed out how the core telco network is getting virtualized,” said Raghuram, according to a Seeking Alpha transcript. “They're going on a journey, just like IT did, from physical to virtual and then from virtual to cloud, extending all the way into the radio access network. And we have introduced the telco cloud platform with an automation layer and an operations layer."

Raghuram said VMware sees a lot of new opportunity in the 5G area. “We are fast becoming the operating system for 5G providers, and we have had a number of wins in this area,” he said.