Update from VMware Partners Exchange

Bob Nolan, Raxco Software’s CEO, attended the VMware Partners Exchange (PEX) in Las Vegas last week Vegas; this is the show where VMware meets with its worldwide partners and kicks off the new year.

Here is a brief overview of the show from Bob:

There were keynote addresses by the VMware co-presidents, Paul Maritz and Carl Eschenbach, Chief Technology Officer Dr. Steve Herrod, Channel Senior Vice President Scott Aronson and others. These guys have all been in place for the 3 years I have attended these events, and its clear they have a plan and are sticking to it. There are some very bright guys here.

A few facts from the event. Last year the PEX had 3,200 attendees; this year there were 4,300. In 2010, VMware did $2.9 billion in revenue and in 2011 it did $3.77 billion; that’s 32% growth, and more than 85% of it comes from VMware’s partners, who are primarily system integrators.

Forrester estimates that by 2015 the private cloud opportunity is going to be $41.5 billion; that’s for clouds inside companies. Gartner says VMware is the #1 growth partner and #2 revenue partner worldwide.

VMware has 350,000 customers and 95% of them are enterprise. Yet, it estimates only 50% of the enterprise customers are “down the path” to full infrastructure virtualization, so there is still a lot of opportunity. It also estimates that 80% of the SMB market is untouched, and VMware is developing solutions for that space.

For partners on average, a $20,000 Server virtualization sale yields a $270,000 solution sale when hardware, services and other products are included. A $20,000 desktop virtualization sale yields $220K. Virtual desktop grew by 400% last year (sounds big, but there are still few large installations).

Someone turns on a VMware VM every 6 seconds and there are about 25 million VMs out there. More than 50% of server workload is virtualized. VMware has more than 50,000 partners and 59,000 VMware Certified Professionals (VCPs).

The company is roughly divided into infrastructure (server), View or EUC (desktop) and application, with crossover from groups like support and channels. VMware has recognized that to maintain its growth it has to leverage third-parties and it is initiating a number of programs to better serve independent software vendors like Raxco.

I had some great meetings with people in the server and desktop groups, as well as the main Alliances group. I am more excited than ever about working with VMware and helping its customers optimize their server and desktop environments. I also met with the folks who run the vExperts (300 going to 500 this year), and the 700 VMware Certified Instructors (VCIs), whom we will be working closely with this coming year.

As a side note, I also had some great discussions with EMC and their key virtualization teams. Look for Raxco and EMC to work together.

It was a very informative and productive week, and I’m excited that Raxco will continue to lead the way in virtualization performance solutions.

Bob Nolan, CEO









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