Aussies still buying virtualisation

The Australia and New Zealand market has been lucrative for VMware in the last half year compared to the rest of the world, but it's being outshone by the rest of Asia Pacific.

update The Australia and New Zealand (ANZ) market has been lucrative for VMware in the last half year compared to the rest of the world, but it's being outshone by the rest of Asia Pacific.

VMware increased its revenue by 71 per cent in ANZ in the last quarter compared with the same quarter last year. The growth for the first half of 2010 was lower, with Australian and New Zealand revenues increasing by 54 per cent on the same period in 2009.

While the second quarter's increase for ANZ was much higher than the global growth of 48 per cent, Australia and New Zealand lagged behind the rest of the Asia Pacific region, which grew an average of 81 per cent over the quarter and 70 per cent over the half.

The high regional growth had a lot to do with a vibrant Japanese and Chinese market, which, following VMware investment, saw business almost double for both the quarter and half results.

Globally, the company achieved US$674 million in revenues.

According to Andrew Dutton, VMware Asia Pacific senior vice president and general manager, most of the growth has come from the company's vSphere platform. "We see strong demand from enterprises deploying private cloud infrastructure, as well as increasing traction from service providers building public cloud services," he said in a statement.

Specifically, the Australian market was continuing to grow, despite the fact that it is "one of the most virtualised landscapes in the world", the company said.

Across the region, the company increased its headcount by 45 per cent over the last 12 months. Australia and New Zealand has almost doubled its headcount from the first quarter to the second, going from 114 to 220. The percentage increase over the last 12 months was not available.

According to the company, the quarter-to-quarter growth was partly due to organic growth, but could mainly be traced back to the purchase of certain Ionix products from EMC in February, which involved the transfer of employees.

Over the last 12 months, the region's customer base grew by 55 per cent to 15,000. Australia and New Zealand's customer base grew by 49 per cent to 8026, meaning that ANZ still holds the majority of customers in the region.

Updated at 3:48pm, 21 July 2010: clarified that the growth increase for Australia and New Zealand of 71 per cent was second quarter 2009 to second quarter 2010.

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