Zachary Scheidt over at Seeking Alpha penned an excellent analysis of the current financial situation VMware is in. Scheidt correctly notes the corrent virtual monopoly the virtualization industry’s poster child holds, and dissects the company’s latest earnings releases.
A small excerpt:
In addition to the $438 million in revenue, the company announced an increase of $88 million in its deferred revenue which is essentially revenue the company has received for service not yet performed. The total is now $641 million which should help to stabilize future revenue as the company can draw on this balance during future periods. In fact, a Credit Suisse analyst had an interesting theory stating that this quarter was helped significantly by the company drawing on this deferred revenue base instead of new business actually driving the strong revenue number.