Vmware (VMW) 26 Feb 212021 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by, and welcome to the VMware’s Fourth Quarter and Fiscal Year 2021 Earnings Call. At this time, all participants are in a listen-only mode. Please be advised that today’s conference is being recorded. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I would now like to hand the conference over to your first speaker for today, the Vice President, Investor Relations, Mr. Ziots. Paul you. Thank sir. ahead, Please go

Thank you. quarter to fourth and afternoon, fiscal year everyone, and call. welcome XXXX VMware’s Good earnings conference

call, Rowe, Zane we Interim the CFO CEO. On and have

remarks, Sanjay Poonen, Customer Raghuram, prepared Following questions. Q&A. join COO, will Cloud and and Operations, Raghu Zane’s Services; COO, we for Products will take

forward-looking viewed where live after accompany being make is not XX-Qs simultaneously currently will VMware and Slides obligation which Our issued such files market the a the are is call as close result do press and risks conclusion of release We any with forward-looking to statements. posted with On webcast this various and the and uncertainties. and X-Ks SEC. webcast in can downloaded described to at from assume XX-Ks, be this of we remarks Actual statements risk this no intend may the materially that was on conjunction results our website update differ of factors to subject today, in call webcast. ir.vmware.com.

substitution addition isolation measures. not today's performance In financial certain should non-GAAP of which non-GAAP considered as financial will from, measures, be GAAP in discuss measures. during call, are a VMware's in we as used addition, for These or measures to,

employee well Our as tax GAAP stock-based stock items and our items assets, transactions, non-GAAP litigation compensation, disposition, and on payroll discrete measures other of employer acquisition, exclude GAAP impacting amortization tax rate. results the effect intangible of acquired as matters our certain

Relations company the will XX for of release and next comparable days available non-GAAP website. including link. Investor with press measures Investor disclosures the on GAAP in these regarding can our replay be the under our this The webcast additional website Relations measures, find You call in reconciliations

over at begins business, Our I'll it April turn With close period of quarter fiscal XXXX Zane. Thursday, to XX, quiet XXXX. the that, first

We're voice position and VMware realize on Thank hearing friend, put you're a want partner value. helped will XXXX revenue finish everyone performance, thank strategy member. increased QX you, the pleased our financial his X%. it and non-GAAP execute as these quarterly to Pat over conference in our course, a with with EPS year-over-year, We QX year. which finished calls. was up today. fiscal I total Board of joining X% We good long-term fiscal to we're EPS be for a leadership, Pat's still and $XX.X used as to Paul, This with we disruption billion and a non-GAAP total VMware what you of to to the is team us past a accomplished. unprecedented and uncertainty, a for and revenue proud true and share. of $X.XX was start of one drive in Pat thank year

from combination the accelerate and Fargo. continue relationships quickly strategic nature sector, financial and helped VMware significant modern help in closed wins In to customers journey our cloud to application and a with HSBC with experiences. in aerospace their including their utilizing we monetization customers of and franchise grow. and infrastructure, we a customers with customers offerings. clouds, of strength and them we initiatives. workforce, digital the solutions, our saw us, Large cloud to the adapted distributed and user apps, largest services to apps to continues security power and We're choose to our digital QX, our workspace foundation networking align particular see their and deliver seeing deals telco global As customers Wells financial partner customers with We ranging to work-from-anywhere continue

the communication also increasing NTT new their and well private VMware in retail and locations. that's contracts cloud X standardized along additional use migrations, communication for large is technologies as for key cloud top their Telia providers, sector, Tanzu. We DOCOMO our see in providers with their as service a investing a are their platform app edge as with also cloud expanded building edge use We retail In globally. on retailers, a solutions, infrastructure Tier continue case to leveraging this for see on on momentum customer other other and as development repeatable cases, focus VMware with while such e-commerce containers as using in service of retailers Tanzu

on and life user devices healthcare helping sciences customers to and is secure apps employees our work enabling run for working with cloud critical is their anywhere. Our to their hybrid from

the partners momentum to expanding reach In addition, of system hyperscalers, ecosystem is partnerships for through driving from solutions. solutions strategic integrators. to VMware our We're key our partner VCPP our

as For example, with expertise in Accenture, well resulting hybrid an their in partnership of group VMware expansion announced will earlier together professionals with variety approximately this business of launch unit. application security. across and X,XXX industries and modernization, of our bring migrations, the as The a cloud-native month, cloud dedicated we cloud

with of joint security service lab edge designed formed Lumin, in recently industries. access SASE number also innovation computing, a or drive secure customers We a for and edge to

broader continue further requirements app as or our hybrid strategy to whether multi-cloud the public. align and portfolio, to cloud the it's at customers private, Looking traction of their we are seeing choice,

services vRealize. AWS additional This to resell expanded quarter, Disaster and Cloud, Recovery we as VMware VMware and our such include with program technologies

service with from Cloud market Technologies EMEA cloud a in to availability VMware, Germany VMware immediate the expanded on Additionally, France. and Dell the Dell EMC, U.K.,

We Tanzu. deliver innovation with continue to on

infrastructure now of X Tanzu Standard of announcement Tanzu Advanced a general embrace to customer container life of enterprises capabilities Advanced. edition, and all and is Advanced Basic, market: the that the need cycle. Each and availability additions DevSecOps applications. at have complete the in manage addition targeted includes we challenge Tanzu modernizing With common

positive reception all to We additions. Tanzu see to strong continue X

VMware leveraging acquisition to We also on-prem Carbon cloud public security provide from Kubernetes and added to container recent our Octarine visibility technology Cloud, into Black clusters.

balancing version offers a FY In In analyst Forrester implemented top included 'XX, of Management by named set Forrester encapsulates latest load were routing, November, We recognized in a Assessment. we business. of for Marketscape leader comprehensive the portfolio how broader networking, aspect related across and end-user Wave enhancements software. our in Gartner was agenda, leader a VMware end-user QX recently, that Hybrid infrastructure which pleased will XX Endpoint Vendor NSX as XXXX named reports which cloud. we a NSX, key December's LX released Management perspective, XXXX. VMware Cloud LX capabilities including in industry across of the in the Our leader I'm to computing. identity was firewall, our every into completely and a space, recently Unified highlight in as cloud From VMware corporate XXXX management, hyperconverged Worldwide to XXXX And recently More the January, goals computing drive leader unveiled to Software. reports a in Magic personally Infrastructure three IDC Software Quadrant positioned Hyperconverged firms we ESG

focused the benchmarks. distinction is business and is areas trust, XXXX Index three earning and in well of world's the into leading integrated sustainability, we among XXXX outcomes; Our of Sustainability Dow the being equity, included ESG the agenda Recently, the on sustainability. performed business in also Jones

grew our combination revenue our large $XX XX strength performance Cloud This Subscription good record performance detail throughout on was Provider SaaS, move close a license saw forecast. We strong the SaaS AWS X% demand quarter, well. XX% offerings. to Black, with as and commercial quarter, revenue our year-over-year subscription, year-over-year on QX, in VMware balanced well with increased end-user as computing, allowed for growth VMware as business million. Carbon deals in Cloud of $X.XXX over the business to us more enterprise let's which Program, In the and billion. our to Now, and

to us further FY continue growth expect invest area XXXX important We in beyond. this and to and see in for

functionality solutions. on great on AWS quarter, and as once adding as year-over-year both use adoption. and as case new revenue we scaling nearly Our VMC with a again focus offerings to is continue doubling workloads well existing had expand

QX, for the an of to billion. the revenue declined and X% XX% increase was of subscription year-over-year of quarter $X.XXX License SaaS $X.X for billion, As year-over-year. ARR end

in increased throughout non-GAAP Cash per flow investments. and We XXX to well for million year-over-year a driven billion, ahead Non-GAAP QX was with share and flow the was shares. ended short-term we operations revenue cash a better billion. X% as than $X.XX XX.X%, free of cash XXXX $X.XXX rate with QX $X.X in was quarter from flow this billion deal operations fiscal share quarter Now, by billion revenue of $X.X unearned closure for billion on quarter. margin was $XX.X diluted from operating $X.XXX Non-GAAP and expected operating was was the had growth. count in of expectations. earnings equivalents, cash income the which $X.XXX better-than-expected strong billion, primarily our cash,

year end, cash XXXX resulted FY primarily on was strength XXXX. closing deals receiving certain prior calendar than emphasis the to in Now, our this to in due FY rather associated which

well In expenditures our addition, and early as end-of-period With advanced collections and lower RPO. we as now providing becoming customers XXXX. from total we're benefited SaaS a certain in subscription and total from larger FY expected other which than of share and revenue, payments current were partners

management which XX% billion, million, backlog growing offerings, not single-digit last which year-over-year. perpetual all continue bookings by For XX% now up vSAN of was that our both basis. broader quarter XX% QX consist and Total SaaS XXXX. related customers RPO million. and were QX, increased of and shipped versus product quarter on of by end held well quarters up ACV two on FY portfolio the $XX year-over-year. a of control growth RPO was available bookings EUC product our which the orders backlog anywhere integrated an NSX highlighted day rate low technologies was in workspace. single-digits our QX, XX% also both to further QX, Horizon on strength now QX, bookings at basis current well, was product substantially are in performed the $XX.X billion, vRealize primarily solutions EUC's year-over-year solutions. of SDDC and our received driven declines, Compute year-over-year with that in into to day Saas. performed to year-over-year and multiple was SaaS contain to had year-over-year continuing that products. product for purchase be These export orders Three in initiatives due License in our our $XX improvement are process. was Overall, $X.X a Core

year-over-year. intrinsic digits ACV, our we and grew and to continue high-single and in in delivering make Carbon SaaS protection product the decreased digits in Black our endpoint on capabilities focus our the year-over-year, progress value high-double again Given to workload security once Cloud bookings expanding EUC customers.

billion Our eight the of of price repurchase average exceeded in from $XXX and top in In rate of XX $X.X the the end a million had of X.X current share. $X.X at QX, we billion. per our strong expectations VMware an we've QX. shares portfolio repurchased utilized deals market in attach Tanzu open over QX, At authorization

for Turning to fiscal XXXX. guidance

expect our approximately outlook We revenue the or of billion X%, provided consistent total of call. last $XX.XXX early on growth which is with rate a

from SaaS. We the XX% SaaS revenue increase expect $X.XXX or of generate subscription of combination from this of subscription to and of amount approximately license billion XX% approximately with an of

operating with non-GAAP margin of count per under shares. of $X.XX expect XX% XXX We of share diluted earnings non-GAAP share million

As of we number a from resulted strong had flow our to exceeding in I cash very mentioned operations over flow $XXX in initiatives guidance earlier, million. by that cash QX due

taking cash extremely into into performance. would cash be free with from FY of $X.XX our in fiscal on cash billion. currently flow operating account cash for overachievement Taking from year-over-year we XXXX, of with a of accelerated expect operations bulk from flow the basis pleased While this flat the flow that year. operations was we're billion line result, for our basis, normalized this XXXX, XXXX, roughly a $X.X acceleration On and FY FY account upcoming into of

a of total expect we QX, billion or approximately For growth $X.XXX X%. revenue of rate

an $X.XXX and year-over-year, XX% combined from SaaS X% this of QX, license amount We and from revenue subscription expect and with approximately over billion of in subscription SaaS. increase

by we for Our was license saw growth in and continued strength expected year. growth QX rate last SaaS in revenue the QX impacted and subscription

transformations. partners. million diluted share the operating non-GAAP our per of invest non-GAAP business and QX and $X.XX of growth, at improvements expect with XXX macro on today executing solutions of seeing our we our as with We're shares. performance, digital QX, pleased in count our customers that XX.X% environment, In technologies a share expanding SaaS to are we're closing, and to engage for we're We margin help partners build with the earnings our opportunities and and to scale continue committed future while and subscription customers delivering with their in

spinoff making the Before of VMware potential we that I'm pleased tell on from go Dell. to to you we questions, are progress

continues Directors value-enhancing stockholders. be that and Independent evaluate special spin-off, VMware our could While of to it committee the we its believe to

share. it to until not Paul that, there's further on commenting turn for news to discussions these I'll With Q&A. more definitive will be We back

Zane. Thanks,

Q&A, Before consisting as so for of get to people question Raghu the can Q&A. you Sanjay we Operator, begin yourselves ask one started. us to get to now as joining let's part, limit and I’ll many possible. one we are

you, first now will Raimo open. Thank the question [Operator Paul. line Instructions] of Lenschow. is The from come Our line

we're Hey, gets Thank growth great finish and when little out little and what areas in on like do pandemic? congrats but it's a you're NSX. a pandemic, bit to They're coming question terms the Pat just on -- how my impacted thanks Can in year this for taking getting Those as question looks well. I the it my vSAN and you. now there this Quick are you the better. how talk from past. for obviously bit act the seeing a suffering miss of you was and of

talk Yes, to a and ask happy add few afterwards. Raimo. Sure, in to maybe that about comments Rahgu

did anticipated, continued As deals we COVID on the most in transformational particularly impact, QX. see

ago. both sort to that impact those great deals the of we'd year, are suggests deals $XX as vSAN. some and and year had million performance we're which with extra-large Uber on call over deals, as XX we fortunate quarter, out, clearly within point area. and XX we had And remarks, deals recovery have our mentioned on I will had, point is this there in versus I an prepared NSX Even the a last you what out, a that

compares. We also tough some had

was NSX up XX%. XX% Year-over-year, was last up So, year. vSAN

up year-over-year basis. you on transactions, when So, if think large incrementally the you about actually really NSX those exclude a was transactions,

Raghu, So, with about particular? those both talk more for as pleased then, overall, opportunity to year-over-year a maybe bit products. the are NSX And was an we basis both we're where little in in incremental

complete Absolutely. load balancing portfolio IDS, for Layer that our West Raimo, and NSX of them offers course, introduced that the IPS, set you expanded X and, threat as we X services our in our to protection Layer and security, a expand know, amongst notable are -- general, our greatly software, of capability, suite East where advanced VeloCloud.

the did businesses of with growth. NSX so really aspect we and growth All are of those well, that's -- businesses. those pleased And the the one of

workloads solutions, is NSX growth applications for modern other part underlying well also cases our And aspect last The and did is we there we for as uses the had those becoming but NSX then as NSX. really the of NSX some cloud network least, and benefit and container well. not increasingly are of

Thank very Okay, good. you.

Raimo. you, Thank

Next question please.

question now line the The next from is line of will Phil come open. Our Winslow.

particular. in the question of on in and guys wanted thanks my for on Tanzu, fiscal congrats strong I year. Hey, taking close to focus a just

momentum As pushed Question, transformative would Obviously, Zane that you mentioned, you're been having eight because over about year? into back think Tanzu. talk Do XX this that top coming deals just you see to transformative of in deals that out Tanzu quarters. the you the deals obviously, come into we're seeing starting Tanzu coming these attached you fiscal probably some fit about talked the bucket? prior can

Yes.

are, Phil. great for We thanks and a mentioning question It's it.

a point you and Tanzu across the with see out, we're team As expectations our our pleased very fronts. exceeded good of there, momentum number performance. QX We

Tanzu -- deals Tanzu. eight point Telco, our in the And out, XX health of all that of we deals sciences, in had top strength Finserv, are the As verticals quarter in platform. life care include top you saw eight our embracing we

a maybe, little pleased with Advanced. got helpful more, be into we bit GA-ed momentum. would very just And to good We you dig think think if Raghu, -- we've that want here, that I Tanzu too. So, it. actually we're We're

Sure.

expand Tanzu around in ecosystem; the second, efforts two were to our in the is new So, axis. are family. and the customers of and part One win Pivotal that Kubernetes especially customers, renew

started Kubernetes with then Cloud Tanzu which So, And in embedded is, propositions. life clusters acquisition cycle. provides Zane container Kubernetes steadily Tanzu for the ecosystem. then provides VCR. been which And three VMware along the customer just into complete we it We introduced Advanced. of management introduced new the has last in new as said, the innovations and product management multi-cloud quarter, we've of for arena, And Tanzu Kubernetes Standard, goes Basic, value Foundation. one we And it Advanced with Tanzu usually, the first introducing

modern it is in customers critical which is model Second allows third And of classifies accelerates the to are their digital code when those, a of coming is marketplace. and -- then pretty the framework a building are enterprises the embrace Advanced XXth DevSecOps the it for production, XX Gartner software one unique to Advanced is And development. in year. Tanzu the offering especially with container applications. Tanzu about the DevSecOps of half this XX in needed capabilities ecosystem. has first

is very So, across offering and the and both so note things so the thing and application development to strong we in, plays been traditionally to first Advanced that areas comprehensive have And and it's the about networking like it the forth. layers. on management Tanzu infrastructure a resource very

second to note about thing Tanzu it modular. Advanced The is is

So, elements at swallow like they It's choose of that customers they have pick one to shot. can and it want. all the not

And vSphere, a very it's customers of well course, with the so is choose from especially And base integrated that can it vSphere best-of-breed. third, and for are is they starting multi-cloud.

and comprehensive with a a to very that excited that's in customers lot why hope it. that about of we So, do business regard, are offering it's and

you, Thank Phil.

question, please. Next

will question Our of come Hedberg. Matt next from the line

is now Your open. line

it's of – $X of near I or for business. a run question about and I your impact breach rate the think SolarWinds billion. guys. the know my taking perhaps Thanks at kind question great. it's the Hey, I had security on

or in transformations any security the you world? just curious broader of on on post-Sunburst Carbon thoughts sort Thank kind Just Black, sort of of the benefits so

wake-up a we Matt. topic, certainly, to you, This Officers. become it's as for Thank overall. Poonen. Sanjay is Boardroom think I talk Security Yes, And call a it's security Chief

where we platform. all discussion of authentication As security from to it need have management everything ONE, and we workload and NSX, tell do a now a certainly, these identity trust security have Black. they of with more about endpoint multifactor to us – hygiene, much allowed you we more Carbon And we them found, know, cyber sort micro to of of the rules segmentation zero comprehensive to Workspace have could

story, much more we us really Chief that as were chasing. conversations sell the is have XX, strategic allowed role became And that, without, to behind So Officer that the then zero important days of now Security last being trust, XX to elements ambulance comprehensive of course, the able of in more it.

prepared Carbon had Cloud of about is that about Workspace course, from heard about security Black You growth NSX, ONE paramount. to where good over excited of security then environment in And that. lot capabilities. Zane's double-digit comments is The a that customers. is XX,XXX now Raghu work-from-anywhere and innovation We're talked a continues with high deliver

Matt. you, Thank

please. question, Next

next will is come open. line now Rangan, now is Kash open. Our of Kash line the Rangan. line the question The from

Okay.

I think, we’ll move question? on to the next

line The next from the will question Walter Pritchard. come of

is Your open. line now

least And be some subscription there to charging around the you've getting think, and in you'd with Thanks. Zane, guess and it into as year initially, But pushing folks. change I a new would you sales that, kickoff of relates force I'm what have articulation and just degree, helpful, Zane here. for subscription the you know, transition, – didn't the the that. to your on guided thanks. further wondering, gone you're basis. you're Sanjay, sort I sales vSphere for you're numbers at update year curious around a an Hi, I you mentioned as through I'm

asking you're pleased not security just We're question. a

– sub focus We away and SaaS as our you sales from We on know, continue week to growth. we're a our kickoff.

quarter, year-over-year with our of portfolio. comfortable the the SaaS we we're transition fourth in very growth are making the XX% grew and comprised and we're total our revenue. seeing in I that We XX% highlighted that sub

a you comp the excited opportunity. to for the XX%, to which We've a little doing portfolio there? sales structure their within guide We're growing with teams need bring. work know FY increase. grow I candidly excited We bit about more XXXX, look at will our the job FY customers, are great about nice we guided you if don't So is about the what think the that if a XXXX want nicely. to we're be Sanjay, will And and portfolio. meet talk too, the to as

we're where is Very next go is Yes. them going. briefly, our what obviously week emphasizing customer and sales kickoff, is the to to

towards how where We've those early some success some subscription edge, those those we'll that. and bring the where as we're there's cloud, it's of cloud, our certainly, and offerings edge the SaaS of cloud vRealize think But accelerate is towards the is. And orient towards good and and public So of have cloud, private use cases. these going saw we type we And on-premise, cloud, appropriate SaaS. move reps customer with in some with capabilities, some you the will orient now given about SaaS offering. If of of to universal also especially has to there's an and seen orientation deployments Horizon. places that taste already. go some discussion flexible can those offerings we the of flexible that

from the So us in months. you'll that about coming hear more

Thank next endeavor. you, Walter, in and your good luck

please. question Next

Shannon next line now line question open. come the is Cross. of now line will the open. Cross, is The Your Shannon from

Okay. to then. go We’ll the next question

is the of Next now line Mark question open. will from come Murphy. The line

where Matt have past afternoon. back wondering year? come add I'm back investment this we in over the private or under Mark this year, some could Hi, investment might if good Murphy. fiscal This congratulations on where of snap you behalf you clouds? seen us for let of And see my areas is specifically this Coss of I'll in quarter. know,

Yes.

the private the But way edge in portfolio on. center, at cloud then is saw cloud we what at in X strategy. private cloud and investments upon you What you it, and the off -- mentioned, in year, both. security customers the a last obviously, And but the as not their the remarks, manage applications marketplace. migrate distinguish point your excited And -- our we a step is applications as the VMware's whether and these is choice? by edge. stack, I private certainly focused or Sanjay in of do data investment super was do a cloud public From paid your that the from the to also our increasingly if at touch look prepared indeed and one question, the them talking you're From the about it becomes, X-plus-X look as clouds: ourselves just you ways are look Raghu. have modernize just is network how the VMware, adopt where by, or full we things think clear back customers the and over our cloud. that's they of a it this call spending they customer's applications X-plus-X on try investment. a So very across And mean And their to deploy How about you of customer of investments an your cloud your well. management, that's in cloud question together? in mentioned, investments choice? of how really Sanjay our view, overall you do I'll all often

to to cloud running pull And last cloud. of in are their than we modernize as the said portfolio security, we the public overall Spring other focusing So Cloud, and future, workload Historically, can application and estate. the customers -- can our private our across on container together a mechanism, the and AWS. nano one infrastructure cloud path on manage platform the in faster XX% help and help are it's can together Java the workload with in it faster application on investments earlier, and modernization technology cheaper. a on all all and workload, and for vSphere-based portfolio workload, you as Tanzu fastest we customers. our natively provide any the majority but not in price with it the XX% investing least, helped we faster whether With with Black we VMware customers Carbon migrate example, workload I have and application protecting And altering a a migrated

continuum their then look as and be applications build, answer it protect your all devices. like question across course, customers all of manage, deliver they And So would the to connect at and private a edge. between run, public to is, clouds this clouds cloud, and to

So that's really – -- looking our where how are pointed and that's customer is customers it, roadmap that's at at. how

mentioned and into at into basis, on-prem an on-prem about business that you doing we're of with sort on-prem Matt, we're look FY our just the you see I of that return EUC as at you on think to 'XX you were X you add, and you would for were to vRealize at when back our positive actually a and about think just looked if license investment Raghu – guide as if well you license for that growth sort the on as our we that with on-prem guide, towards elements if business, 'XX. the piece what would – converted moving FY take where SaaS, look are you

we we've all a business, the it's some slightly going we're while, returns not that it that of that of reflection So guided see negative, into growth SaaS, probably our our business. that getting business. sub investment the push within and Actually towards in masks with

see So invest in well. and a that we continue it great as opportunity for ahead to

Matt. you, Thank

please. Next question

open. Moerdler. The The next is Mark from come line of now will line the question

environment? what you demand Mark current any from for provide about IT the organizations on given hearing Moerdler. Victoria for color Cardenas on Could virtualization you're demand core server

we products was strength up positive then and SDDC performed compute our saw surprise year-over-year. in year-over-year basis. we offerings, QX service I'll to up I that really on saw Sure. management a Compute add in the I strength, Raghu Obviously, well was slightly actually as let a product Yes. start well XX% on We many. vRealize which, core was, what with as which think, was the saw by mentioned, our as side. highlighted what

AWS thinking where Raghu, on had servers to to multi-cloud such if on contribute you are you... were Our with think as the growth, offerings I touch compute. is cloud VMC which SDDC the on demand synonymous somewhat maybe least you want you management, core that question you about as more bit VCPP, little at this a and

Yes.

has So that we into workloads traditional a introduced are function being these server in typically of environments. really done the applications. have historically, virtualization Clearly, enterprise well been

so in the pointed couple not vSphere. years, increasingly out as core on, extending Over network And previous IT adopting And microservices They're to architecture the virtualization, cloud, we and customers from and calls, are on of all a radio to virtual the access out, virtual from how also virtualized. seeing applications Sanjay the then network. call what cloud-native of way we applications, going did, the physical containers into like using built we've telco edge. getting last on just are journey, is would and running top pointed

So evolving the the fundamentally that of breadth and can virtualization expanding, what's server business. and handle continuously is workloads virtualization that's driving

Thank you, Victoria.

please. question, Next

next from Cross. of question will line come the Our Shannon

is now open. Your line

I different much I and very apologize, was call and juggling a you it. Thank missed

a who XG with just opportunity VMware? what's for they're for to apologize the talk going that cloud? you on around to a hear We've telco and are see And you're with definitely So that. just others working ramp. working starting general, from providers what started Can anyway, thinking about in bit XG about – the the

you. through numbers. how to curious that Thank expect your just I'm we should So roll

question, that take I'll Shannon. Yes.

this past access said of them physical needs and the Tier momentum our XG. providers selecting go radio now framework. ago, open virtualized global couple an is step the radio layer. virtual we happening. core running the it's have a network we components, network. was big one this step first the being as in is, offerings cloud minutes customer course, containers in operations are quarter, a service automation One architecture then from software, XG – an next are in The And considerations machines or as to is I and access And VMware. – next And virtual the cloud, here. layer delivered continued on and the few their So radio introduced the network, with network in is to X customers standards core of disaggregated disruptive customers telco from there. of to a network the on access then And And platform with increasingly our a have step. – and virtualization matched virtual that journey delivered beyond in running the saw telco The trends fundamentally

industry In XG lot, segment and arena. the – where that in source any open standards it's fact, a there if matters obviously is open

we are had becoming is our VMware the selecting operating for that So we VMware a and map. area. where are in that's wins most number where that's providers, fast And customers are have in XG system interested road – of this

you, Shannon. Thank

please? question, Next

the The Keith Weiss. next question of come will line from

open. now is line Your

we taking the around and wanted really material of are on NSX, today products view sort of to products Singh how the charge? who's what growth. years that And NSX, VMware come to you vSAN anchor can over are through those power to of question. had Thank VCPP next last is So a the dollar This going product Sanjit the scale and was in to to trend drive and composition is really terms the a that growth going the going to of be, from you two of expect overall key out for If And portfolio from XXXX. market gone? including the question a picture as driving of We impressive lead the like for you sort in perspective? take I of really And acceleration some transition. My XXXX get EUC, XXXX COVID, Keith. anchor of pretty of point

of to all components are that, that to FY around sizable the growth within we're quite that. pleased products. mean, and XX% feel Sure. drive opportunities and through many obviously, the we with our very sub we years the of SaaS And then sort into portfolio. those happy start dig Yes, I I'm Raghu growth good for expecting of and believe some that XXXX, in obviously, maybe Raghu beyond growth come have and went will

Tanzu, for for focused that with and talk cloud to growth app significant drive that and is and are going us. us we cloud believe us how upside significant We you've and modernization. on about heard integrates portfolio And our

more We about also stack. talk

over as that all around growth as now, that. to we've And talk our with the whether quarters this as I hear integrated last it's the that been drivers probably going in well talking VMware VMC about more or to that's wrapper a about just on nature the as of five doing key number AWS we've Cloud. been being the all of franchises to work the identify intrinsic So you're area form us security would

of as portfolio together. how it's product as the before and integrated the working maybe with pleased I'll and ever how sees give well. than more we're couple now a highlights it's he set Raghu have But So

Absolutely.

and maturing, along of service Cloud. them other portfolio of as across base as addresses combination drive are and of are management VMware to of we plus our A are in that our the into about cloud. well them Tanzu need which their a secular is the talk cloud all modernization. delivered two of customers' big of Foundation bringing Cloud that would together. course, VMware application a customer on-premise core manage I towards to and VMware application And modernizing the able the be One something offerings, Cloud we modernization, together, will. this hyperscalers plus the if now application a all as is So and journey one and as calling from application in offerings, moving the Tanzu present terms our both estate, portfolio other is providers, migration addressing you modernization And part are halves, to management with

our to one be -- So that's of growth. driver one going that's

other employees, puzzle at experience, environments for been not manageability, taking et work-from-home hoc. security, the consideration architected for cetera. at look it's doest you coming are the if et our continue their fairly needs working of the side customers And the into home. -- most a ad is IT even conclusion The most to enterprises post-COVID, other looking going performance, from of our that significant of It cetera, portion end-user to the today, increasingly

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to So be these a would sales be the year. this two taking our will pillars market way big in that force

Thank you, Sanjit.

question Next please.

come open. next now The line Thill. the question of is line Brent The will from

to expansion for you you're the into Sanjay, the be that Thanks year? relative or Brent. rates, any would Zane there on the in side, XXXX helpful? of X% revenue assumptions to is can guys. on Just This rates for embedding terms speak cycles, guide Parthiv color close growth fiscal SaaS sales last

to then Sanjay. it I'll start, Sure. hand happy Yeah, to I'm and over

As I renewal sub XX% growth expecting great fortunate out in We're earlier, to pointed have SaaS our we're rates, which and portfolio. continue.

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there's of And great set SaaS very ahead. we opportunity we’re So encouraged candidly, with and our portfolio, by much there. see the sub a we opportunity think

dig So, don’t the to Sanjay, know and what bit customer from if more bit you're lens talk seeing. want little a little a I you

Yeah.

recovery I think portfolio we sales of there's hopefully, think, our is as kind I that what gradual Raghu a build two economy, to on the of reinforcing we're those and translate, elements in kind force.

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clouds, growth that edge it's like in customers student will But that to about. on-premise. investing be private feel that like that's feel the So aren't talked and element certainly the where don't Zane organizing led and we to SaaS XX% areas right, there spending body subscription or want a appropriate

Parthiv. you, Thank

question, Next please.

from will the The question Kirk come Materne. next of line

Your is now line open.

is of [ph] Hi. wanted VMware This Bed ask for on questions. I Kirk. And the about Sharad behalf to Cloud. calling thanks taking

on When more the prepared So cloud year-over-year there's cloud clearly expanding are growth their vendors. VMware here, the your presence remarks AWS, with doubling VMware great the revenue growth think the and ARR actively traction, you on to or strong about refactor or all workloads to believe look new on many customers platform, of established hyperscale of partnerships potentially run? able is given the color Cloud and and on as you function partners, net longer-term long lift bringing shift cloud you public any in you customers? them how would a Thank see give what are on customers the of for the portion you. And workloads versus or

Yeah.

new the And then, is talked start. the customers. -- me to The your coming fact, about. considerable you used once after workloads in get answer they in customers also question of part and both Let and, rate to -- platform. One is at existing we the the first from is the growth are AWS Cloud a expanding axis acquiring platform VMware that on expanding

product Our is greatly relationship resell working both partnership the AWS, the this, in go-to-market on and us side with well. is and the on side, very helping

we both brought modernization. are workloads themselves, brought where In in categories workloads the being see are for terms as that as workloads being well of is, as

have Cloud is you Tanzu top on and it of native and a VMware One stack bring of on refactor to it Cloud the can the the top run or benefits services. connect benefits VMware you the cloud of unique can workload great and of in stack, all even OpenShift the and architecture

AWS For any example, if VMware and the use and of or the AWS Cloud this services. was or workload Redshift on running could other AWS, VMware Aurora Cloud

entire bring overnight. portfolio to great enterprise a take it and provides of customers one this none can transformation So, And environment this their happens on where platform.

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that as well. course, we excitement lot we of there thing same hyperscalers with And and working is pipelines well. a and as can with infancy, robust the do business the hyperscalers, other a seeing other Of great but relationship the in are its very

Thank you, Sharad.

Next question please.

next will Keith of from line is open. the come The Bachman. question The line now

and/or if I I A, and wanted on thank description very And to much you question is, set back And three you the strong is And this results. is levels. go thank congratulations of to for Raghu, very Hi it that my Tanzu, -- on a could. B, revenue include? generator? those on metrics anticipate year that you And part of might the a mind a portfolio pull Tanzu is given what of in in any adoption? Tanzu there your metrics or

of Yes. the part I'll about part talk can the then and story. the second Zane answer first

market of So, multi-cloud. their it answer. breadth course, And run building Tanzu customers and top very are portfolio We on for the that really we and of well existing the applications. and we above is of us that significant absolutely doing in modernizing massive as for of well are as the unique is of refactoring fact our short terms And applications vSphere. are digital independently an the see which we is all their transformation new in market, both market as

to want never better run customers be. Tanzu, infrastructure the differentiated course, platform with of the the in of And does supporting answer own question. So, first And that's our right? our platforms applications. for will sake, its to the always infrastructure run more infrastructure They your more part order

cross-cloud layer then phenomenon. well. many Kubernetes is as it So, infrastructure industry least, our out in definitely story pull And to It's turning the the last, in portability will be an respects. but not

be very investing may part are providing heavily best on. and regardless control you which the we so Tanzu Kubernetes management as running world's portfolio the platform of in Kubernetes And of

benefit in a us. And rest of it's pulls strategic a so generator, revenue the it to our platform. It's and

Keith, it's Hey Zane.

just that easier So, I actually took side of to the question. Raghu thought, add to that,

above. We you as It's for producer we Raghu to said, it's will give the continue well. us and, more I as as information is very bookings revenue beneficial. mean, both it a and of find we strategic great believe,

accounts product and So, as of it's customer in hear about exciting within as part we more talk us we portfolio. the and strategy. our statistics sort you'll announcements product relevant And other grows to with of make continue as that, adoption that grow and

that front, So, on come more to Keith.

you. Thank Okay.

Keith. Thank you,

Okay. Thank you.

Thank Keith. you,

please. question Next

Bollin. The Next Ben question of line from is the now line open. come will

talk Good evening, as market? Lumen? And Could about rest of strategy taking particular, differentiated you the with a in versus the bit little everyone. with how SASE the relationship you Thank view you your the for question.

XG and comments providers the in talked with is and strategic are happy relationship them. telco/service builds to Number three covered one the see a computing, as compute, Yeah. storage, and it. excited it I'm Zane is service interested it former really This the provider, moves of were networking we we take areas. And to to very announce CenturyLink, sort edge Raghu edge. Lumen with because about. us, on working that

The announcements ONE, service of a into Horizon, edge. tying secure work-from-anywhere, very they tremendous Workspace portfolio We some and inclusive around that. around VMworld strategic our in second made VMware proposition is see of

and a lab, a to -- big partnership XG these we're arm key of that BXB Carbon the a them going industry third portfolio. telcos very jointly it's and have and service a partnership. of solutions with given exciting security, We're of service these seeing many type the providers will where to emerge in security. endpoints then this they be protecting joint enterprise And customers form our other to as going And that's was So with particularly type wants Black moves of to very and very, part take to innovation workloads. market, their for we

Thank you, Ben.

last have question, for so one time I we take let's question. think the more

All right.

question will of open. last line Majek. line Our is The now come from the Robert

which and keep IT the theme Thanks. acquisition. ties how just in your VMware SaltStack with I you A stand is Great. about infrastructure Can at where on acquisition? well SaltStack recent you integrating expand from hearing automation, benefits automation

Yeah.

of amongst in an portfolio, overall, piece the by application the our operations the Salt is piece the if customer and the management products of and to automation vRealize And very about an excited is our interest called developers. vRealize meet operations called and infrastructure like Salt automate in applications you are automation base. needs think automation, vRealize industry We setup and role that of there -- to

pieces configuration of now. set you well to and has that think years, automating it an right for all about area cloud open-source It's infrastructure if and setup is SaltStack industry for the or a either as ripe developers et application the And is it years of development teams broad reasons adoption, infrastructure why and called been instantaneously So of be of as application is for of The elastically this the multiple can setup to shrinkage, cetera, et most been very, automation popular is number application up the automating a of around so one software. one frameworks. behind attractive very the what happens both -- cetera. and expand the you magic has for innovation with automation applications.

integrated But our they are. in in are IT nature. a that of well vRealize to environment. environment the SaltStack We teams VMware teams SaltStack and automation like of deliver phenomenally process helps said, automation and IT our vRealize customers, Clearly, regardless in rest where with automation to work of are integrating our the going I an teams, multi-cloud it's DevOps

center ECT what and sort you of that's or it Azure, portfolio. the can nobody can automate of walk data your really an you nobody SaltStack So in I around to knobs. – earlier, name into as our it, environments use with in So plays fiddle COVID, where And can your right? area said SaltStack

the that's want highest category. driving levels, at in its automation really what's and that You interest

you, Thank Robert.

we conclude, think Before has I Zane few final a comments.

committed Sure, I'd In These results Paul. demonstrate you execute say We're your good the and technologies finish to of our deliver help customers today business our our and to and growth for year. investing digital with while we scale. transformations. building Yes, partners at and QX their fiscal and a strategy our multi-cloud to that ability in SaaS questions. all summary, was solutions a future thanks subscription to

a So fiscal successful thank you for us XXXX. in and continued to our again on team VMware progress forward updates XXXX. FY our everyone. to Thank you, helping our look customers, providing partners the We close

Ladies Thank call. and today's conference concludes participating. this for you gentlemen,

now may You disconnect.