Hybrid cloud, SDDC products boost quarterly VMware revenue

According to VMware's Q3 2018 earnings report, the company received a nice boost from VMware Cloud on AWS, but NSX and vSAN remain the biggest contributors to VMware revenue. The recent trend toward everything software-defined, fueled by small companies and large multi-national corporations alike, has had a major effect on the IT market. In the case of VMware, ESXi no longer sees the growth it once did and, in recognition of that, the vendor has made a massive investment in its software-defined data center offerings. According to Pat Gelsinger, CEO of VMware, the vendor is focused on transitioning from a compute virtualization company to one that provides a portfolio of products and services across cloud, networking, security and more. Based on VMware's Q3 2018 earnings report, it's an effort that's paid off: Total VMware revenue increased 11% year over year (YoY), while license revenue increased 14% YoY. Hybrid cloud and SaaS accounted for over 8% of VMware's total revenue. That might not sound like an impressive amount but considering that VMware Cloud (VMC) on AWS was only released in August 2017, it’s a solid start for VMware's hybrid cloud offering. And this number will only increase now that VMC on AWS is now available in both AWS U.S. West and U.S. East.