It is now in the news that the VMware Inc had been able to beat Wall Street beyond its expectation in terms of revenue forecast. VMware had been able to really go places in terms of revenue forecast. The strong financial standing of VMware is something to really put into consideration among several software makers. This industry had been able to make its mark to a great extent in the software making industry. One thing that had become clear is that the measure of the strength of any company is the financial muscle the company is able to pull. This is the reason why VMware is able to have a strong standing n the software making industry.
What is responsible for the increase?
The reason for this financial strength possessed by VMware is made possible by the increase in sales by the small and mid sized businesses. Due to this increase in financial strength, the company’s share rose in 5 percent in after market trade. This is one of the occurrences that are responsible for making VMware outlook to beat Wall Street view.
The company’s leadership role
In comparison with many other companies that are involved in the technology industry, VMware is the leader. This is due to the usefulness of the products of the virtualization server of this particular company. This virtualization server is used to build virtual data centers. It is also used in building cloud computing system. These two mentioned above are the two main areas and the fastest growing areas in the technology sector. This information was made available by Katherine Egbert who is an analyst with Jefferies & Co. she even clearly declared that VMware is the company that owns the market in the technology world.
The growth in revenue forecast
The revenue of this company had really grown a great deal. The growth in the revenue of VMware rises to up to 48 percent in the second quarter. This 48 percent rise actually amounts to $674 million. Initially, analysts have forecasted that the rise will not be more than $657 million.
The rise of the company is not at an end yet; VMware is actually forecasting a rise of up to $680 million by third quarter which will beat the revenue forecast of the second quarter. This is according to Thomas Reuters.
VMware also have a forecast of $2.725 billion to $2.8 billion as its full year revenue forecast. This also goes a long way in beating the $2.71 billion average estimate given by analysts concerning VMware’s revenue.
VMware is the undeniably the best when it comes to the virtualization software market. The company is clearly the dominating figure in this rapidly growing market. This is not to say that the company does not have its own share of opposition in the market. The principal opposing figures that are competing the virtualization software market with VMware are the well known Microsoft Corporation and the oracle corporation. Needless to say, these two companies are very big names in the industry of making virtualization software. For VMware to be able to weather this storm and stay on top is a proof of its capability.