Last October, I wrote an article titled "VMware as LBO Opportunity for EMC?"
In that article, I projected Q4 revenues for VMware to be about $200M, with the resulting FY2006 total VMware revenues of about $677M. Needless to say, I was a bit on the low side.
Last month, EMC announced their Q42006 results. VMware grew total revenues 101% year-over-year to $232M. They also grew total revenues 83% year-over-year to $709M for 2006.
On the conference call, EMC projected revenues of $1.2B for VMware in 2007. That's another 69% year-over-year growth rate. I don't doubt it. In fact, sources on the street tell me that internally VMware believes they can do $1.5B in 2007. That's a bit harder to grok, but, as witnessed above, I have underestimated VMware before. Many congratulations to VMware and their hard-working employees. I look forward to adding them to the elite list of $1B+ revenue software companies in 2007.
Looks like the Virtualization market is finally maturing. Hallelujah!
Tags: VMware, EMC, Virtualization, Earnings, Brian Berliner, brianberliner