VMware’s SaaS and Subscription Revenue Spikes by 44% to $676 Million in October 2020
SaaS and subscription revenue of its VMware surpassed its on-premises license revenue for the first time in its Q3 fiscal year 2021 which ended in October 2020.
According to the research data analyzed and published by Comprar Acciones, VMware’s SaaS and subscription revenue for Q3 FY21 totaled $676 million. That marked an increase of 44% year-over-year (YoY) and accounted for 24% of the company’s total revenue. It is $37 million higher than the $639 million revenue of its on-premises license segment.
Global IT Spending to Shed $300 Billion in 2020 as Cloud Spending Surges 6.3%
Global spending on data center systems is expected to drop 10% to $188 billion in 2020 according to Gartner. At the same time, cloud system infrastructure services are estimated to grow from $41 billion in 2019 to $63 billion in 2020.
Gartner also projects that SaaS solutions will generate $104.7 billion in 2020. The figure was $102.1 billion in 2019 and is set to grow to $121.0 billion in 2021, and further to $140.6 billion in 2022.
According to a study by IDC, In Q1 2020, on-premises IT spending sank by 16.3% YoY, while cloud spending grew by 2.2%. Similarly, in Q2 2020, traditional IT spending fell by 8.7% YoY while cloud spending soared by 34.4% YoY.
Q3 2020 saw a 33% YoY upsurge in global cloud spending to reach $36.5 billion according to a forecast by Canalys. That was $2 billion higher than Q2 2020 and $9 billion higher than Q3 2019.
Moreover, Gartner projects that global IT spending will decline by 8% YoY in 2020 to $3.5 trillion, down from $3.8 trillion in 2019, which means that the drop will be a massive $300 billion. However, cloud spending will grow by 6.3% during the same period.
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