IT spend usually takes a hit when a recession is nigh, but VMware Inc (NYSE: VMW), as per CEO Rangarajan Raghuram, has not seen such a slowdown so far.
Demand to remain strong through the balance of 2022
The cloud computing and virtualisation technology company recently reported market-beating results for its fiscal second quarter. This morning on CNBC’s “TechCheck”, the chief executive said:
We’re tied to how the customers think about their digital transformation journey and the adoption of multi-cloud. Because it’s once in a generation transformation, we expect it to continue well into the second half.
The California-based company ended Q2 with $12.10 billion of remaining performance obligations, up 8.0% on a year-over-year basis.
Wall Street currently recommends that you buy VMware stock as it has upside to $139 on average that translates to a 20% increase from here.
VMware launches a multi-cloud management portfolio
Also on Tuesday, VMware unveiled “Aria” for multi-cloud management at “Explore” – it’s flagship conference that was previously known as “VMworld”. CEO Raghuram added:
Customers find themselves very quickly putting a lot of applications everywhere as they build out their digital infrastructure. As a result, spending, security, management sometimes goes out of control. Aria solves these problems.
Earlier this year, Broadcom said it will buy VMware for $61 billion in cash and stock (one of the largest takeovers ever in the tech space).
The transaction is expected to complete in its fiscal 2023 so long that it secures regulatory and shareholders’ approval.
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