VMWare 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.”
