Feeds

VMware freezes hiring, gives chilly outlook

Full year to be low end of estimates

Bridging the IT gap between rising business demands and ageing tools

Virtualisation company VMware increased turnover by 32 per cent in the last three months, but warned that earnings for the year are likely to be on the low side of previous estimates and that it has started a hiring freeze.

Revenues were $472m in the third quarter of 2008 and the firm made GAAP operating income of $101m - up 54 per cent from the third quarter of 2007.

VMware said it expects full-year revenue to be towards the lower end of previous estimates, of 42 to 45 per cent, but warned: "Current uncertainty in global economic conditions makes it particularly difficult to predict product demand and other related matters and makes it more likely that VMware’s actual results could differ materially from expectations.".

But the company remains confident, in part because it believes that virtualisation offers relatively quick returns for businesses looking to cut costs.

VMware added 200 people in the quarter - giving it a total of 6,500. For the next quarter, and probably into 2009, the firm is only making "important and strategic" hires.

CEO of VMware Paul Maritz addressed competition from Microsoft, which began offering its own virtualisation product in the quarter.

Maritz also said: "We take Microsoft very seriously and keep our eyes very closely focused on them. We did see a couple of customers indulge in direct head-to-head product comparisons and by and large those work to our favor." He said the general economy was more of a concern.

VMware is splitting itself into business divisions based on server and desktop products and according to regions. It is looking to promote and hire people to run those areas.

VMware's full statement is here. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.