Vmware (VMW) 28 May 212022 Q1 Earnings call transcript

Thank you for standing by, and welcome to the VMware Q1 FY 2022 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's conference is being recorded. Instructions]. [Operator like conference now speaker to hand Mr. today, to would over the your I President Relations. of Vice Ziots, Paul Investor Thank you. Please go ahead.

[XXXX] Thank you. quarter conference (sic) first to welcome call. earnings Good afternoon, fiscal everyone, year and VMware's XXXX

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

take we Following will prepared questions. Zane's remarks,

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

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

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to us Thank thank and you, today. joining Paul, everyone you

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bookings our quarter was last billion, RPO up our substantially backlog Total enables multi-cloud pleased portfolio day over and shipped million, and and product deployments And customers and was on was $XX QX. to up on-prem both such at manage which subscription subscription were year-over-year, that SDDC $XX RPO driven of current for consisted XX% orders with We're of not up million. as and $XX orders in held export on-prem Core received performance and over to quarter both AWS. due VMC process. high XX% management offerings, all control QX, cloud manner. and vRealize Cloud XX% was was of License increasing was billion, a increased in $X.X environments strong the with SaaS, SaaS VCPP backlog consistent Compute growth year-over-year. the product X% year-over-year. management end the teens. For compute by on which growth in

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

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

I'm our XXX our We My in a of VMware share the earnings computing and our comments of our year. expect non-GAAP momentum I'll to Raghu XX% pleased customers to with accelerate QX million non-GAAP operating for SaaS summary, our towards company QX, diluted multi-cloud start on it them, and partners to that and era, we're and shares. to forward looking being open the subscription count a In working margin good for share with it we're team with of for the $X.XX value Q&A. partners and per stockholders. building thanks to Raghu make our the the our customers a portfolio. for to progress over to creating leads up now turn progress we few before with

look VMware start-up focused leading partnership Zane as one and that I fortunate core small FY when hypervisor. categories his new I this new a us and on VMware to the as been our most joined we in President, businesses the creating companies successful role product VMware Sumit off, to go-to-market lead new thank teams. our Dhawan the both influential efforts period were many of First keeping like manager in I'd our for friend, made our Zane, priorities. in and through our industry. have building of forward independent have 'XX continued leading with and product I for interim to my

most We importantly, foundation our critical great values our have culture, their and as an Most applications. trust of strong the thousands exceptional of products. for software hundreds customers team,

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and from Going accelerating drive for multi-cloud more about, preference as to serves our key that that you'll best our be that computing our SaaS. forward, innovation our and about drive customers accelerating stockholder areas industry-leading model to I'm customers' hearing me portfolio passionate business the the support value subscription such

that growth. progress VMware power new XX that will seize I'm will been I've phase these make have in an to exciting the been years. areas, we opportunity multi-cloud tremendous for As of with in confident privileged we platforms

as for it you door. now the walked I I with was that about our will Paul share I as to excited future the hand day back in me today I'm Let Q&A.

Raghu. Thanks,

of ask we limit let's Before can yourselves people consisting possible. begin one I get the to you we as to part, to started. get Q&A, will many one so question as Operator,

Hedberg. the of line [Operator comes from Instructions] first question Matt Your

think had Raghu, time new Dell and all, of to congrats more sort a the First life it. how a -- a little on But QX. role, little Maybe bit I only period the even to talk wanted growth VMware you've strong then profitability reflect deleveraging do I'm basis algorithm does curious, about on a be team here. affects go-forward world you -- obviously, bit a on it spin. in not but the to there's going of a to change post congrats how your to from independent an on perspective?

talk customers. stockholders clouds of enhances a extend bit which the as about standalone we vision our ecosystem for start outcome ago, thinking the Sure, in then ability all as Having more and about articulated about to Raghu let strategy. Matt. platform this spin, for of the SaaS creating as benefits ubiquitous across our both we're some company happy Obviously, the little established excited infrastructure. VMware time our and of a software well to support I'm

about in like the to hear we in portfolio So as leaning and you'll are with we financial sub more in multi-cloud how that a more lot particular, will developing. SaaS Raghu team the with look and as that and think year terms, the what and even plan on that work through

multi-cloud what And So a We're by we're lot landscape and feel VMC here, categories, got and the momentum we future. what you we're like. of with VCPP. see the first like encouraged by with we've core looks performance quarter encouraged with in with in seeing that particular, the

us let more more expect a with strategy. use a strong and bit to I'll to talk ecosystem broadly. allow Dell little relationship continue, but the to have you about We that that we'll continue Raghu,

been increased a really the of and And to in us Dell leading execute have have cloud form with all Matt. period flexibility And the partnering that Zane the over continue I'm same spoken multi-cloud that customers it time, on impending partnership codified going well we're that I've and -- our agreement. strategy. spin-off. and the our to, companies. about and positive infrastructure partnership have excited companies upon long based commercial they It time, strongly. technical the Thanks, the At we are with partnering vision we the allows very, to strategy, multi-cloud a in our Sure. our said, working business like all of will and very

have technology The post bunch as think we'll both clearly et the we best such cetera. that Dell, and Cloud of cetera, areas worlds. we VMware Dell et So VeloCloud, is of SD-WAN, you around to with spin, about, today, VxRail, cetera, have a partnership spoken et

Going on work our forward, statements we we together, backed of can have to for of XX deliver in by a that's the powerful where to work customers. our going areas our commercial agreement fundamental differentiation field in service be together And of solution customers.

So all, impending excited about the I'm in very spin. all

from Mark Murphy. question of the Next comes line

Raghu, add I as my Very will exciting. congrats well.

mean you're Azure pushing mean to You with the understand us help strategy subscription it a strength position and bit you multi-cloud Does you have from coming referring else? it Can Google spoken levers turbocharging and even it perhaps products others? of SaaS? about working which a accelerating and Tanzu and VMware, more and does Does more you of mean with accelerate? For something to want Or computing that. or instance, faster? are

Mark. Yes. Thanks,

perspective. let's approach So from when the -- it it customer

portfolio. that's solve transformation. applications to enterprise customers you that shape. turns about As in our modernizing order one is taking what for to problems, data I've out, is help typically accelerate their edge. the increasingly we or to talked that that's In more priorities accelerate does. at to many and it about, are means They multiple the software moving industry they the platform they're -- deploying center in talked It architecture this What digital customer as top have is have their application clouds distributed the so are this, and in

Tanzu modern deployments on And -- You faster XX% public X/X have cloud are is choice, on their clouds. of to applications of help today, that business customers -- is at Tanzu. the the build least and Tanzu

that's first strategy. aspect So the the of

the course, of multi-cloud is infrastructure. The second,

a a sorry, deploy data on in have choice And work be center. vSphere We et the our with deployed on edge want ensure or XX partner presence deployed solution, million deployed network the connect AWS, want think management, or vRealize XX the clouds portfolio provides our significant workloads or cetera, -- vSphere suite million, And workload, them, it. most stack might a IBM, common our which about is common deploy today And might the customers you the And manage non-vSphere. got about is in as then portion multi-cloud everywhere you is they policy solution workload, through the them where once you management through security -- that things Oracle and ABS deploying go of geared of customers important in course, wherever them common have Alibaba, portion the the significant you of together significant said to products spoken workload. have Google to you GCVE happens it, to the platforms to on our has cetera, applications built ensure Microsoft customers on then the on modernize once be et of that of for and preferred where on AVS with and on to policy. then one and

that want accelerate. inherently bring is of natively platform. That And there parts and about need portfolio can are platform. no industry the really market really in coherent all into we excited what come of a these to all together multi-cloud, player is these a is they together I'm and what all our credible So in to other

regard. are that We very unique in

second we set customers point unique is the and very the technologies is VMware of tools are they reason already starting are using. The for

else. deliver has this all of of strategic end-to-end. of major all course, all these And are to anybody we third not last spin, can truly least, we relationships faster future them then to players cloud cloud be and, the reason only platform get is unique the the state will these with post that the So the players major help company but than we infrastructure

work I accelerate. what to when It's of So lot a say but super that's do really mean exciting. I

to to begin And a position these looking are history of days in forward very weeks a of We you each know, we have the in ahead. I'm and And with. as innovating strong categories.

comes question of Lenschow. line the Raimo Next from

Thank talk of you of That And quarter. strength you can as really and was in of called well, about you partner congrats Raghu. some The kind the from this out compute? the me kind -- amazing work of the kind of that how to there. versus one-off that's fundamental really business? much How of is kind much underlying of is recovery? Because exciting. like kind that And of changes stuff

Yes. Raimo, start. I'll

point COVID. we've out, compute business of since its continued you As year X cycled the now recovery initial the that impact

So by to on a XX% just excess a year-over-year compute and we but such in on It still offerings, on softer growth. contributed multi-cloud AWS year-over-year had solid contributed granted of growth, the as basis. VMC all in solid QX grouping VCPP, compare, growth, our is aggregate of

would turnaround So performance over this we're that And a was the which quarter. nice of really to recover hit gradually The we the with initially, solid course continue pleased the hard the commercial in year. particular, saw to category. expect sector of

to continued of QX, maybe compute really performance for Raghu some some working touch this I we're it's that think QX started little of strength the see seeing in we're We of the on So on. in areas let bodes of business. well some and the on rest a we're the bit what I'll year. more the the with in seeing into and and fundamental it's

Zane. Raimo, thanks, and Thanks,

is our AWS, et as said, back of Azure part into And strength business. see compute start being Cloud So Zane offerings as of on and all on that offerings integral portfolio. multi-cloud strength an we've because et to seen on build such like cloud compute the we our up, reflected cetera, cetera, Google, compute, VMware

a -- is talked across NVIDIA have been may cetera. NVIDIA our in you sector, what the brings innovation have strength time but the which enterprise portfolio of seen talked updates. the on commercial sorry, if portfolio our Of vSphere business. product in in -- And about in the look AI. the enterprise you vSphere And partnership, we the top of we elements then strength and at with then overall. not accelerated the portfolio, compute go-to cetera, contributor driving in long Zane platform and telco, course, of observed et vSphere previously actually the been critical NVIDIA compute driving we And core have just has X VCPP the board, to -- the for have for business compute X, about et our makes strength vSphere then AI

So our innovate continue it in compute ways, to the we of and different around many you're some business, seeing results. and renovate

Next the Moerdler. line of from Mark question comes

great taking looking Congratulations that. the on quarter the Raghu on helm, and we're both and from for things

So I on want increasing a to follow up and subscription. focus cloud this on little more

offerings making really what you've cloud client subscription, more been or your not You've and more but how actively of as driven the available purchase. purchase or the client

move. and client Universal, firm commission drive taking functionality, shift the faster Cloud to the specifically you business? deploy to more transition a sales via recurring the or to see that lot With for aggressive else a of much shift much, a Do flexibility differentiated VMware approach you the more launch to business add the it, something pricing,

answer Dhawan, short our his new on got baby. And Universal, call the -- Go-to-Market here we've Sumit of with But President many yes in is us. And Mark. Thanks, yes. ways, is the

So I'll let him elaborate.

Thanks, and good as program their for program. embrace the initial QX, to customers had are we thanks, okay? Yes, their And services Raghu, cloud designed we think have how and Mark. programs launched flexibility Universal you success. mentioned, them really pace, give in I own the That's to we so designed at

flexibility, and at technologies And during the be on-premise convert simplifies any our customers. the and deploy on AWS. and completely the management truly a any the and having anything a deployment that's multi-cloud choice able so eligible Cloud for their the as that And once services. customers get is flexible has that's can welcome And infrastructure contract been towards offering unique unused to VMware on a the and time the program in apply of designed they they and subscription buy of benefit purchase entire service and our consumption where industry

just go are the continue teams, We our And interest are planning, appropriate our offers. that our our teams. to launched to with driving market And we starting we as as universal as as embrace behavior see we incentives to semester, customers go-to-market do go offerings, well to into our teams have customer the following encouraging the appropriate we'll which it in growth pipeline. our lead make in so

Next question of line from Radke. Tyler the

I and vSAN. to what seeing on you you're the ask wanted about NSX

understand of in and the being trend trends about the this of hold. a impacted I quarter color the rest kind of to throughout function is how year. think rest drove expect the the throughout you that expect how strategic bookings some were talked some QX, if projects to recover but wanted on and product still you just bookings you the the of on just what in that But to year of

then I'll start Yes, Tyler. Sure, and Raghu. it hand over to

single-digits in same if both we out, those point look over compare, remarks, I'll that last bookings quarter as you As and XX% NSX for the products prepared my of But a point down were the year. year-over-year out on at vSAN up were you mentioned product basis. also

the to transformative And are this of So was projects you as slowdown last of signs which point mentioned, that there the starting they through show those of hadn't last seen at are improvement, in slow year. large the impact time year. course

see see more expect So those of we volumes to and improve projects. to do those projects

vSAN. included top of NSX out look a both our X deals, XX If you and at take XX

of actually as element VMC well a It's pleased offering. the key VCPP technology. our as with we're part and So also

through general I'll product it basis, portfolio. while little embedded the a in more there. touch Raghu seeing outlook on on what we're encouraged bit year. we're So it's doing of And we're a off seeing on our by the And year-over-year have the rest we're

are product business to are our on multi-cloud said, to VMware have address Cloud, of core echo expect To what these those Cloud We Yes. customers hyperscalers full IDS/IPS offer which stack. core solution, portfolio as et stack X cetera, well. we Foundation both a NSX with benefit Cloud expand also offering, to of the as benefit alternatives. fantastic we specifically AWS and firewall, part which part use as is NSX continues offering vSAN well the we for have part the And course, layer our have we stack. Workspace segments layer differentiated continued networking all of vSAN now well. VMware the tremendously a vSAN as economic to VeloCloud included the offerings, as part to to leadership Zane of significant seen performance our as to other the participate VMware Anywhere VCPP just greater in on grow, stack the NSX, products even core our continue other And and and of that is offerings East-West they in. customers. VMware Similarly, multi-cloud as there And Foundation cases. load-balancing we And infrastructure portfolio into have good of then the and well the our expand our on-premise And a SD-WAN and over of number Cloud and

in an HCI leader it. customers opportunities the be continue that introduced storage, to to and around performance we VxRail. to where industry of Specifically, the from good addressable separately innovate increases cases compute use And are set and scale and vSAN. able continue an innovation We recently for saw we in

next the question Karl comes of line Your Keirstead. from

and is Zane. question Maybe Raghu for this maybe

their corporate as I aggressively a that growth, to I their result. therefore AWS, was heard think on-premise the think into incorrect, for Maybe countless seems if and be XX%. thesis line GCP, shared created And your centers Azure, revenue but refute those CTOs compute, their the results thoughts. everybody upgrade at of offer has concern. that workloads that. less sort about And CTOs I've perhaps would anecdotes That you general could it'd a be looking inclined us on core from it you accelerate I'm it's data pretty of is XX%; wondering concern. plans to to growth help great where the yet your X%; I'm CRPO square migration to

Thanks.

clouds. to the like So our manage deploying They applications to their dawn it trend data deploying in a able the them an in to have product like needs. developers is that increasingly in the for multi-cloud the teams with a resilient They looking are are on solutions all CIO build looking computing at a remarks, and their software of and macro in addressing general applications be platforms means business we're our applications the deploy customers secure are suits And is and my the multiple that keep everything that and cost-efficient our edge. center. platform result, locations -- customers And needs. applications at allows end-to-end across portfolio. That deploying to are as are solutions, is the to the that best deploy, era. fit the are that They're IT manner. thesis that their start we of said with What best really looking application we I in

Tanzu, the portfolio, portfolio, to problem. addresses well. you a cloud for application choice. proposition about has on that our is modern solves value solves modernization Tanzu very if problem our done is their accelerate of So And modernization developer wanting Tanzu that And the application which the -- think for

a data is at -- fact, consolidate In been stores take that addresses et move put because to hyperconverged and or existing their our Foundation deployments environments, rationalize they're problem. their out applications If and least a and problem. in portfolio is to have cloud, clouds. their infrastructure a customer for them optimize Tanzu consistent all security customer year's efficiency build If infrastructure revamping the that Cloud VMware looking X/X cetera, Cloud manufacturing facilities, edge all them these you connecting of places, all the that on is strength foundation stack and and being of across deployed that manageability, and see addresses and is the why compute are there new if you the and problem. applications of so foundation because lines, these the deployed the forth. these What a being will. in all gives trend the of cost these that you that are That fundamental the so that's across on VMware or workloads looking centers trend is public looking lines, is their VMware see to customer last to fact existing If addresses of chart

question Kidron. Ittai Next from

down want My get And basis. quarter year-over-year little out bit luck the a and the a fifth significantly you the good expect on to of forward? the It's growth new as going RPO. it's a I we dynamics into in and Raghu, can into congrats should this? Zane, where ask role. RPO what about row mechanics in well, of did

Sure, over What look Yes. the if Ittai. you number been consistent. we quarters, focus of more last the actually CRPO. it's on fairly is And

year. that pleased I'll for that, last compares ACV, we very seen we're represents. that the the be not over year-over-year that multiple with metric you the more acquisitions our the a And think of at to that. XX% the with quarters. been favorable on along year-over-year the of look If sub model course, starting And also we're focused number on SaaS, we And XX% favorable some in growth VCPP. broadly if And RPO, quarters, over in in growing utility a take it's some an growth of obviously, we're the quite more we've of that's time as at all spend you typically CRPO with because it quarters. look on. somewhat last more quarter focus what it's there. basis, we've point a we've and highlighted second out metric with captured with We tends basis tremendous few seen But RPO had on especially on of very pleased the and consistent last

overall pleased the and most both, particularly say, quite with I'd on CRPO. we're RPO we're So growth on seeing

Reback. Brad from question Next

rev the from it that Cloud cash we that deployment the Zane, customers, product and it as as rec look VMware bigger, flexibility? Universal gives grows about think and of flexibility we how impact the flow towards should

depending the Yes. the go at obviously, onset. Brad, will a to great be on flexibility which regard. they down, in it's that provides question. path products mean, some in I engaging choose customers, it And then

So a giving still of a will of and we've model SaaS-type the the more and choice number obviously, we products, and little and that as probably SaaS seen, that programs as well. sub perpetual customers sub favoring designed bit choose flexibility. have our customers But

customers are deploy and first flexibility, account our it amount that of saw forecast, fair up up flexibility that be in the quarter. ratably, but But expecting our as with what for rolled for we're you saw our factored our year, in we'll this to we've on, we're for candidly, and we'll a that -- embedded about So years. accordingly. to move have choosing optimism and and in into more guidance we future that that that's the comes guidance. Universal to more pleased obviously, learn with But along, that And strength as

question Next line the of Jim from Fish.

the from a the cloud the core? items Any horse, investments, Not business seeing, are at you're on consolidation congrats Raghu, playing software shortages all? easy you're dynamic role business sound chain on to the private dead data other a course. a a impact more obviously, does specifically the push-or-pull of company, from outside returning. the center color of actually core Then And beat it promotion, the and impacting supply more compare, but on stays but like

let then touch Raghu on macro as I'll and Sure. the start on well.

just think spend some I in observing, and growth. saw coming and our clearly, general And that's of think that just optimism, in products. I this earlier, said, pleased. the as can. compute I management. more of up on in that speaking, with continue building you there's happy general, for we to And pointed we core we out just this we couldn't But horse generally as be beat improved QX. sense back as that we're keep we're pleased, dead We'll beating But as and XX% with we're over long

impact of regard starting see the let the of with And as the we're tunnel the there what that. portfolio trends here it's as seeing thankfully, in then the number you think some space. integration to hopefully commercial particular, add I'll the in of the are our we we're our customers. to on at customers, I of we're And to pandemic a our Raghu, with light those the and multi-cloud end with of the encouraged well. by partners, seeing

infrastructure application. are wherever providing Jim. they are Thanks, we happening where an is to companies. amongst the Zane modernize or of private existing sort enterprises fundamentally, still for of choose to to just very a add or It to that said, Absolutely. them help the application able in the to what To especially they power And the want what them application modernize there's ability and put we their cloud, application. new a out the large build lot either turns underneath the very, that

For the largest think as that out continuing the even of even Similarly, they that invest with continuing very continuing as modernizing we that to out their cloud. of some that and to infrastructure they private investing of the network what savings in can example, very that us build yesterday, are they're and I banks we a are are public in to person some closely large cloud telcos the a existing they with infrastructure working about are build their work then generate to reinvest their applications. is CTO was multi-cloud modernizing with And speaking told strategy. their in

A all dynamics which is of simple out So shows same not is something why up these in seeing and in are answer the time, the B. we at I decreases play as think

So...

Thill. Brent of line the from question Next

that I look changing take? Raghu, what want after wasn't XX the perhaps to on the Anything guess, you're you that you lot. as you for years, forward, a you've that seen top priority approach over? taking is

think first, remarks. alluded to -- things in thanks, I mean, my I prepared X Brent. Yes. I

sort of me on elaborate Let that.

before, customers many and are goes think to have centralization multiple times we many again. to I -- back infrastructures. of world ways, I In if pendulum spoken the at the customer you the look the through look industry trends, customer decentralization use from accelerating their many, of in, and from and at I many, this and centralization

a I in again. swing think we are pendulum such

is, world do plays places. our the what great other multiple customer way. credible are actual that the observing at this And to depend Customers them out there's all And it. VMware in turning that's CEO a about if X which that applications IT right? a you across of distributed was going again. our focusing all not new I'm to -- can vendors recent here XX upon world our is a to world? clouds, about And it conference. applications behavior the question in be And customers which it's The years, So becoming Microsoft's on. just think and thought was everybody in last is cloud. opportunity strengths, -- same the helping run think distributed is the tremendous centralizing job to who the deploying observation we of at that But and made

the So when the management, platform, want our exactly connectivity, that's I networking, say compute software portfolio, multi-cloud but accelerate to innovation together. mean, put everything not the in we just what I providing the an storage, end-to-end the the

a expressing number Number point our towards are models. one. preference that's and So customers two, subscription SaaS

the And offerings application customers So of X from to from anywhere, them we in either taking those the about, workforce talked things or modernization, controlled all on cloud. subscription on-premise enabling be we cloud our of our have multi-cloud we are work tend business accelerate existing and we that SaaS. from to be to to energies doing are we enabling also to evolution delivered have as our regard. as focus model One, of our But the and obviously, previously all SaaS offerings. and

it go Sumit place is a to what so talked much to customers to along result, a at on easier and makes that. kind we're it model, journey. extraordinarily portfolio on we customers that as like for can in sales entire we're introducing this As accelerate to has SaaS in it this subscription for look Universal journey. are of be the to be then hard to go and we going put And going our easy so and incentives that positioned And about, going available offerings business makes much,

the of from question Kirk Materne. Next line

of is the move we're in just Zane to seeing, pretty my pass know minoring X infrastructure Raghu, in but out curious X. you're still of using of was how in clouds having I maybe kind about there a that or you're applications parallel go seems one clouds and are was of hearing also versus on in parallel on them, you fill of how using I big are is terms sort terms terms new curious other frankly, understand majoring or complex to the you're in with as getting, for customers if in helping one kind forward? all like I just I what frankly, of multiple seeing what we another, are and add Raghu, being don't and the -- what It sort this able of customers position. bigger sort think, congrats, more gap I'll of around. skills

is is, a are we same it use and would of turns are I prefer Absolutely, the second that want see, Kirk. has suits vendor we we clouds, stack. that or out are and What always and major selecting the external going X deploy. more other the cloud. for pattern. One customers see potentially -- -- second, customers XX% or data estimated been or I'm A to but -- this. by perhaps best analyst an they applications, way, they then the prominent to There have applications, infrastructure of using certain about Thank for X they one one. say, add this the And that analyst I'll prefer And Sumit. a for for X clouds stack you, application start reasons set Zane seeing, certain one can

this. selecting we clouds multiple put viable in to as different customers applications applications -- customers, see That's become we clouds. So see and have reason different with mature one

Whatever and technology using is companies, early the it the buying to organizations pick distributed large different this we are clouds. be in your And reason second underlying preferences, is multiple clouds. the customers The see it especially and most they process. are fairly that point, is, different centers different with reality reason,

customers top well. And private as clouds that, will are on the shift. investing in So all of mix of our

a edge So X plus and in earlier phenomenon, an at X they're where many cloud. or using conversations, X I've cases, least talked in building X their clouds, a about private cloud plus public X

So when We or or multi-cloud. we talk more about X just this we don't mean X public clouds. mean is what clouds

you sense a market around this? the So of with does that provide

Next question from the line of Shannon Cross.

need terms me. one from I'm about their just of concern you expand multi-cloud more moving Zane, to to that of what concerns? And hearing curious platform, the first for and are their Raghu people Hi, Or obviously, about talk some is of you address how a about? to are addressing areas thing And there security. customers you you think it? in on Are it as security?

Yes. Thanks, Shannon.

we had Security -- yesterday. Council our fact, Customer Council Advisory In

on then this, out are to some right? is, I problem cloud applications. do Board, and security's in an of private which and have list, major was said, makes certainly the multi-cloud they in it secure give priority And is, in to because the they're second are in all is Customer themselves And to components is architect the high clouds like sense public And cloud, protect And One they public that with found most secure And associated you applications This they you asking so cloud that so assets, And by examples as step the they're assets application we had imagine. them that's in -- spread -- distributed. we security bank the me the Advisory They great a our the security you all are now every CIO's analyze important discussion. distributed? applications for had were other problem and actually. phenomenon that, how even application our higher. that that themselves are even that do tied solve the digital XXX analyze back, let all multi-cloud can forefront. if when trying a So that more high these XXX couple multi-cloud them of puts they running XXX the how clouds. the they go on data

the Bachman. from question Next line of Keith

that so is adoption. ask, if hope you could important overall now? that I sits getting of give deals XX where would Raghu, XX speak broadly. indication those and kind are Zane the on give on metrics any included Tanzu. seems you X year talk adoption It Congrats, this us I more know from may wanted broader that number Raghu. mentioned can anything about durability ago How how broadly, can beacon today I for you Tanzu deals a the the unfold months a on you say, paid in versus, could downloads, to of there and you per think trends of -- developers, you an it. of Tanzu And you portfolio, And top is

Let me start.

Tanzu And private in customers that the day. they to is by applications are comprehensive, So broader could choice, is portfolio-wise, the trying helping chose public our solve Tanzu, problem portfolio of the their it's the Tanzu cloud and pretty be that to modernize even the the central cloud clouds or growing with we be where any developers their in.

the Tanzu's customers. becoming proposition value application central modernization of And is So of imagine all really of importance given a of Tanzu. why what about and you the and can with at digital our we more that initiatives more talk to our customers, lot

I in Now to briefly XX in present top deals. me part being of portfolio. the of before about momentum, of metrics, talk our let terms about it your question the Zane about the second the talked elements X of And get

the modern it, core is as modern substrate them emerging the of on live. is of which which One Kubernetes applications aspect

developers of build what the applications. are is applications on these And The -- management using to second developers their Kubernetes. third is using tools the are running that the

take that's which developer on one to been developer enterprises. data popular been Spring, -- that, very modern framework Just it's point a is in a

have developers number. is technology applications And developers minute. And Spring used which that's Spring Spring. are is developers Spring how we every seeing amazing X the used We modernize, of Boot starts to registered million over an which XX Boot, that are -- of

terms In marketplace, that. developers open over our application Bitnami have X for application million marketplace, of source registered our we

significant their a to modernize So we technologies that quite applications. population built quietly Tanzu of have developers using are

from question Nehal line Chokshi. Next the of

Congrats, Raghu.

fiscal what year will which Looking it environment 'XX improving, seems here, the Look, forward about be $XX think by you raised results. can million do about million. first guidance to I like quarter the of strong beat is The $XXX is seeing versus fantastic.

forward So a that only raise. million represents about $XX

much Given talked why about, context a larger I that the raise just here? not

of course through obviously, that outperform, feel course of the we're in business. QX. while push about The -- the we revenue good license that performance, we'll call the on of we sub this recognize SaaS with through the heard and continue Nehal, you've the performance as our about And with recognition pleased the primarily to the year. ratable element was

you performance in sub the QX as -- on expect SaaS, end and the well. feel side. guide we about, obviously, feel about revenue towards well year. recognized bookings we the and But would see continue to good year, lot of next good well as a tail We for full focus we'll talk on as will be something into which more So of in our raise not QX. But to the that about year obviously, that this only the but

and So good think we we feel and good million about the $XXX beat was raise. forecast, the a

line Our Weiss. of Keith the last question comes from

for Chris on is Keith. This

VMware a me. and We've for hearing relationship has in just traction. quick been Azure good checks been So one picking the up our that pretty

VMware have. just Universal scale, from especially any can for Cloud out? that you have Azure So wondering partnership And expectations product that you how partnership the you how different is the AWS the VMC have now on partnership flagship

Yes.

So is platform own the the and and partner. Cloud VMware we run Foundation Cloud stack. is that built but that, service and AWS essential VMware AWS said Azure by it the Having the Microsoft, preferred is our offering operate. has on

So get a they the VMware and customer that's of the from a on-premise benefits stack. running to move with can stack that that lot Cloud similar AWS

path this to fact, collaborate workloads Azure. Team to that members with said, is of for go the one the fast we In Microsoft Microsoft

of evacuation seeing seeing APJ [Suncorp] and a Airlines significant have doing center American large population their of So bank desktop in a started already that data reference we interest amount we wins, some virtualization on top there, like that's customer And are their platform. moving Azure. early

-- So are momentum. we early some seeing good momentum

Thank Chris. you,

comments. has finish, Zane some Before we concluding

Paul. Thanks, Sure.

year. much, Thank to fiscal As forward the again we're SaaS everyone. you've start updating excited building good our to a our next And we're you chapter our progress stand-alone about you heard, QX our and next as a company look and and very quarter. with Raghu was portfolio. We're pleased with the as momentum subscription CEO with

Thank This concludes today's call. participating. for all conference you

now You disconnect. may