VMware Is Ramping Up In Mobile To Tap BYOD Demand
VMware (NYSE:VMW) is the global leader in the desktop and server virtualization space and is currently ramping up its mobile virtualization business. It recently added Motorola to its list of mobile makers who have partnered with the company to provide its bring your own device (BYOD) software, Horizon Mobile. Motorola joins Samsung and LG and these handset makers will ship devices enabled with Horizon Mobile, allowing customers to access work-related data with a virtual mobile desktop while maintaining security.
VMware also announced versions of its software which can be deployed on iOS and will roll out software for Windows and RIMM’s Blackberry handsets depending on the demand. Mobile virtualization will become increasingly important for VMware in the coming quarters, and we expect it to drive revenues in the future. [1]
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The Bring Your Own Device Revolution
The bring-your-own-device (BYOD) revolution is being led by VMware with products such as Horizon Mobile and View Mobile Secure Desktop. It provides a safe and secure environment for mobile virtualization by providing secure snapshots of the desktop which can be monitored and controlled by IT departments. It has an efficient hybrid storage mechanism which combines Flash and legacy storage to provide speed as well as cost efficiency.
The mobile desktop virtualization opportunity is a much bigger opportunity than desktops in our view as it will cover smartphones and tablets are growing at a much faster rate than PCs as evidenced by 45% y-o-y growth in smartphone sales in Q3 2012. As the workforce becomes more mobile and demands CRM and data services on the move, we expect this to become an important revenue driver for VMware.
Virtualization software is is the largest division of VMware and accounts for nearly 89% of VMwares value according to our analysis. We have a $109 Trefis price estimate for VMware, which is around 25% above the current market price.
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Notes:- VMware Adds Motorola, www.eweek.com, Nov 11, 2012 [↩]