VMWare licence revenue falls as recession bites


VMWare licence revenue falls as recession bites

Cliff Saran

VMware has reported revenues for the first quarter 2009 of $470.3m, an increase of 7% from the first quarter of 2008. However, the company has been impacted by the recession, with a decline of 13% on software licence revenue from a year ago.

The company said services revenues are becoming a larger proportion of its total revenues. In the first quarter, services revenues were 45% of total revenues compared to 33% a year ago.

Paul Maritz, president and chief executive officer, said, "We delivered solid results for the first quarter despite a very challenging economic climate. Customers continued to adopt the VMware platform as a strategic investment that delivers substantial cost savings and improved efficiency and flexibility for their business."

Earlier this week, VMware launched vSphere 4, which it positions as an operating system for supporting the IT for internal cloud computing.

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