Forrester Named VMW a Leader in Hybrid Cloud Management
Gloomy 2016 Outlook Overshadows VMware's Good 4Q15 Results
Forrester named VMware a leader in hybrid cloud management solutions and private cloud software suites
Previously in the series, we discussed VMware’s (VMW) revenues and operating segment’s performance in fiscal 4Q15 and 2015, respectively. VMware in its fiscal 4Q15 earnings release stated that the company was named as a leader in “The Forrester Wave: Hybrid Cloud Management Solutions, Q1 2016″ as well as “The Forrester Wave: Private Cloud Software Suites, Q1 2016.” The other technology players who were part of this evaluation included BMC Software, Citrix (CTXS), CliQr Technologies, Dell, Hewlett-Packard Enterprise (HPQ), IBM (IBM), Microsoft (MSFT), Red Hat (RHT), and RightScale.
The other technology players who were part of this evaluation included BMC Software, Citrix (CTXS), CliQr Technologies, Dell, Hewlett-Packard Enterprise (HPQ), IBM (IBM), Microsoft (MSFT), Red Hat (RHT), and RightScale. Forrester stated that VMware achieved the maximum score among hybrid cloud management vendors as well as the highest score among the private cloud vendors evaluated in its report.
Apart from these titles, VMware is the leader in the virtualization software space and was also named as a leader in the client computing software space by IDC in mid-2015, as the above presentation shows.
Fiscal 2016 expectations
For fiscal 2016, VMware expects revenue in the range of $6.8 billion to $6.9 billion while EPS is expected to be $4.16 per share. VMware guidance for 2016 failed to meet analyst expectations who were expecting revenue and EPS of $7.2 billion and $4.20 per share, respectively.
Investors who wish to gain broad-based exposure to VMware can consider investing in the iShares Russell 1000 Growth ETF (IWF). IWF invests ~13% of its holdings in application software and ~0.04% of its holdings in VMW.
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