Tag: subscriptions

VMware customers will move to subscriptions

Pat-Gelsinger-300x199VMWare CEO, Kicking Pat Gelsinger, expects some customers to buy all of their VMware products on a subscription model

Kicking Pat said that VMware is set to make more of its products available as a service and says it is anticipating some customers wanting their entire VMware purchasing done through a subscription model within three years.

Subscription models are not new at VMware – AirWatch, AppDefense and Wavefront all use it, but most revenues come from  traditional licensing.

“We’re primarily a perpetual licence business, but today about nine percent of our business is as-a-service, in the subscription business, and that portion of our business is growing about three-times faster than our overall business”, Gelsinger said.

“We expect that piece of our business to grow much more rapidly moving forward and, frankly, I expect in a year or two some of you as customers are going to tip over and say ‘that’s how I want to buy all of my products’. Today the vast majority is perpetual but clearly we expect that to become more important and we’ll have a broader set of options.

“In the next three years I expect some of you to say ‘that’s how I want to buy all of my VMware’ and we plan on having offerings in place to be able to enable that.”