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VMware Russia

Company

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Russian representative office of the American company VMware.

Owners:
VMware

Assets

In January, 2019 VMware created in Russia the legal person - Viemvare Rus LLC as which founders the Irish child structures of the company act. Viemvare Rus it was created, mainly, for marketing functions - promotions of products and VMware services in the local market, explained TAdviser in the company.

Heads of offices

  • since May 1, 2009 - the chief representative in Russia and the CIS Antich Anton, before two years worked in the same company the partnership director.

History

2019: VMware announced "aggressive" growth of business in Russia

Business of VMware in Russia in 2018 grew much more in high gear in dollars, than on average in the world, the head of the company in Russia and the CIS Alexander Vasilenko told TAdviser. He preferred not to disclose dynamics in absolute measures, but characterized growth as "very aggressive".

Global revenue of VMware in the reporting year which came to the end for the company on February 1, 2019 made $8.97 billion that is 14% more than value of year prescription. Rise was promoted by transition of VMware to a cloud business model within which the vendor actively attracts partners.

Cloud services became one of drivers of growth of revenue of the company and in Russia. According to Vasilenko, business of VMware Cloud Provider Program (VCPP) especially dynamically developed. It is the program within which partners propose solutions of VMware on the "software as service" model. This direction, according to Vasilenko, grew many times quicker, than other directions of business of the company.

Clouds became the driver of growth VMware in the world and in Russia <i> (a photo - TAdviser)</i>
Clouds became the driver of growth VMware in the world and in Russia (a photo - TAdviser)

According to the head of VMware in Russia and the CIS, the last is partly connected with pent-up demand for infrastructure resources. Against the background of the crisis phenomena many customers are inclined to hold budgets on these purposes because of what "the technology debt" collects. But sooner or later it it is necessary to give and invest in IT infrastructure.

And secondly, there is a feeling that customers began to treat with great trust external cloud solutions, Alexander Vasilenko noted in a conversation with TAdviser. If earlier they preferred to store practically everything on own infrastructure, then now it changed.

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At the same time the speech about customers of all levels. If earlier the situation could differ depending on the size of the company, then now we see projects and in absolutely small companies, and at very big customers, - Alexander Vasilenko says.
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Both the psychological factor, and financial affected it: customers saw that due to use of cloud infrastructure it is possible to receive an economic benefit in this or that type. It is especially relevant against the background of economic uncertainty when customers are afraid to make risky large investments - to make fixed assets in physical infrastructure. Clouds allow to distribute investments in time and to pay only for that volume of resources which is really necessary in specific timepoint.

At the same time the political moments affecting the list of the main players have an impact on the Russian market. For example, Amazon has no DPC in Russia because of what its share in the market of cloud services not so big, as in the USA and Western Europe.

On this background there is more scope at local players, such as MTS, DataLine, Rostelecom, SberCloud and others, Alexander Vasilenko notes. Many of them understand that because of a political situation in the nearest future global players will hardly come to the Russian market, and actively develop. It is supported also by the VMware platform

One of trends in the field of virtualization in Russia - transition from basic virtualization to expansion of a range of technologies which are implemented by customers. So, for example, Vasilenko selected quite fast adaptation of technologies of network virtualization. First there were many pilot projects, but mass implementations were not, and now the NSX direction (the virtualization platform of network) becomes a mainstream both at large, and at medium-sized customers. Also the hyper convergent systems, Kubernetes, etc. are interesting to customers.

Other trend, Alexander Vasilenko says, it is leaving from component virtualization when the projects NSX, vSAN, basic virtualization, etc. were separate. Now more and more projects when VMware Cloud Foundation as a basis for the platform of the customer is on sale are observed. In Europe and the USA such shift of a paradigm happened about 2-3 years ago. VMware Cloud Foundation, from the point of view of the company, is "operating system" for SDDC of DPCs (Software-defined datacenter, software-defined DPC).

After a universal trend, one more trend it is possible to call distribution of use of Kubernetes technology in the Russian organizations - platforms open source for management of container applications and the related components of network and storage. The Russian office VMware tells that Kubernetes already is practically everywhere. Follows from communication with customers that someone already carried out deployment, someone plans, someone actively develops. At this Kubernetes adopt also state structures.

In October in Russia despite not the simplest political and economic situation of TAdviser told about increase in volumes of business also in other American company - Oracle. As well as in a case with VMware, clouds are also for Oracle the important driver of growth. Read more here.

According to a ranking of TAdviser of 50 most profitable representative offices of the foreign IT companies in Russia, at the end of 2018 their revenue mainly showed growth, though it is necessary to make a reservation that it passes not all transactions through local offices. Many contracts are signed directly with foreign legal persons of these companies.

2016: VMware recovered the business which "sank" in Russia anti-recessionary discounts for products

The Russian division of business of VMware in 2016 showed the highest growth rates of revenue in dollars in Europe. Jean-Pierre Brulard, the senior vice president and the general manager of the region of EMEA told TAdviser about it in March, 2017. He preferred not to call growth and total revenue in absolute measures.

The top manager added that on the level of accomplishment of the sales plan the Russian office also overtook other countries of Europe.

Growth of turnover was preceded by difficulties with sales in Russia against the background of the become complicated geopolitical and economic situation. In the 3rd quarter 2014, for example, the CEO of VMware Pat Gelsinger provided data that order amount in Russia was reduced year-on-year more than by 50%. In October, 2015 the vice president of VMware in CEMEA region Luigi Freguia told about the reduction of sales in dollars taking place earlier because of crisis. Also in 2015 the president and the operating officer of VMware Carl Eschenbach noted that Russia remains the difficult region because of an economic situation.

Jean-Pierre Broular considers that in 2017 it will be difficult to keep the same growth rates to the Russian team
Jean-Pierre Broular considers that in 2017 it will be difficult to keep the same growth rates to the Russian team

Special price policy to which VMware in Russia against the background of crisis began to adhere allowed to improve indicators of sales in the Russian market in 2015-2016. Jean-Pierre Broular told TAdviser that the company set the prices of the products at the level allowing to level their significant rise in price for the Russian customers because of growth of currency rates here. It "a special discount for Russia", the top manager of VMware in a conversation with TAdviser told.

The company applies the flexible prices also to licenses upon purchase of new products, and to updates of the products which are already set at customers. The policy of the flexible prices extends to all customers in Russia, Brular says. According to him, each half a year VMware revises the recorded prices for the Russian market, taking into account change of currency rates.

It should be noted that in crisis of VMware it was not the only foreign vendor which resorted to flexible price policy in the Russian market. SAP CIS, for example, in 2015 began to be calculated on the existing service contracts of technical support in Russia at the fixed low euro exchange rate.

According to Jean-Pierre Broular, requirement of the Russian organizations for IT upgrade which remains, despite a difficult economic situation became the driver of growth of business VMware in Russia in 2016 also. Among the industries for which it is especially relevant he calls the financial sector: banks need to develop new digital services for clients. According to Broular, to business of VMware in Russia 2016 gave to confidence cooperation with a number of large banking organizations, including Sberbank and the Central Bank.

Demand for solutions of virtualization in VMware is noted also in a segment of telecommunication companies. The project on virtualization of network services for one of the largest Russian operators which began in 2016 became the large project for the company here.

The representative of VMware notes the need for upgrade also in the Russian public sector though here process, according to him, progresses a little slowly. Cooperation with computer system manufacturer "Aquarius" was help to business of VMware in a public sector in 2016, Jean-Pierre Broular says. It became the OEM partner of VMware and delivers virtualization software as a part of the products.

From the product point of view the driver of sales in Russia is the solution for virtualization of storage systems of vSAN, Brular added.

Jean-Pierre Broular notes that the sales level of 2015 from which the company grew in Russia affected growth rates of 2016. In 2017 it will be difficult to support the same growth rates to the Russian team, he considers.

The top manager of VMware added that a crisis background his company did not reduce a command of the Russian office, unlike some other American companies which in certain cases significantly optimized the state.

2015: VMware waits for big "defrosting" of projects in Russia

Some time ago sales of VMware in Russia in dollars were significantly reduced, however now the situation is stabilized, TAdviser in October, 2015 the vice president of VMware in CEMEA region Luigi Freguia told. According to him, VMware is satisfied with the current results of activity of the Russian division both in dollars, and in local currency.

Luigi Fregua believes that affairs at VMware in Russia go to crisis better, than at competitors

Specific data on dynamics of sales of the company in Russia in 2014-2015 refused to provide Fregua and local division of VMware of TAdviser. Earlier, speaking about intermediate results of activity of VMware, her CEO Pat Gelsinger provided data that in the 3rd quarter 2014 order amount in Russia was reduced year-on-year more than by 50% because of geopolitical tensions. Later, according to the results of the 2nd quarter 2015 the president and the operating officer of VMware Carl Eschenbach noted that Russia remains the difficult region because of an economic situation.

Because of devaluation of ruble of VMware in 2014-2015 faced "freezing" of projects at customers in Russia – their postponement or suspension for some term, TAdviser, the head of the Russian division of the company Alexander Vasilenko told. First of all customers freeze the investment projects expected the distant and medium term also look that they could make own forces, without IT supplier. At the same time in regions projects "are frozen" more strictly, than in the center, Vasilenko says.

Alexander Vasilenko ceased to provide data on dynamics of sales of VMware in Russia, referring to the fact that the policy of disclosure of information in the company became more tough

He could not give an assessment of scales of the "frozen" projects, but noted that in the 4th quarter 2015 it is possible to expect great pent-up demand for solutions of virtualization at the expense of such projects.

"Our projects are usually frozen in the last queue because it is simpler to us to show return from the project "bluntly". We treat that type of the companies which even in crisis can explain with deep arguments to customers not only at the level of CIO, but also the chief financial officer and others why it is necessary to buy our products", - the head of VMware in Russia says.

Alexander Vasilenko also told that taking into account a difficult economic situation and increase in prices for products because of growth of dollar exchange rate of VMware at the end of 2014 developed the special program for the Russian market within which customers can purchase its products on special, more flexible conditions.

He added that technologies of VMware can be estimated at the total cost of ownership and to count how many means will be saved due to virtualization, and usually these parameters block costs which go for acquisition of these technologies, even taking into account the fallen ruble exchange rate.

According to Vasilenko, against the background of a difficult economic situation rates of virtualization in Russia increased: "during crisis the company management is simpler to convince that it is necessary to change something". By its estimates, on average in the Russian market the level of virtualization of servers exceeded 40% and approaches 50%. In the companies numbering IT users more than 1 thousand this indicator can be above – up to 80%.

Against the background of crisis, according to Vasilenko, from customers there was more attention to solutions based on Open Source as to an alternative to vendor products. At the same time, he believes, it is illusion what is software absolutely free: in reality it can turn out that additional development will be more expensive, than purchase of proprietary solutions. Besides, costs for specialists which can support solutions on Open Source are necessary. He added that in many cases customers use in projects and Open Source, and technology of VMware.

2014: Increase in demand for virtualization software in regions

In 2014 in Russian regions significant increase in demand for solutions for virtualization in this connection for this period the share of regional business in the general structure of revenue of the company grew was observed, the head of the Russian office VMware Alexander Vasilenko in February, 2015 [[Vasilenko Alexander Vladimirovich|]] told TAdviser.

According to him if to look on top-10 projects of VMware in the field of implementation of technologies of virtualization for end users in Russia for 2014, then three of such projects fall on regions while still a year ago all ten projects fell on Moscow and St. Petersburg. At the same time even their small share fell on St. Petersburg, Vasilenko tells. The largest regional projects at the end of 2014 projects took place in the telecom sector and the banking sector.

Alexander Vasilenko also told TAdviser that in 2014 in the Russian representative office of VMware the special structure which is engaged in regional development was selected, and virtual offices in Novosibirsk, Yekaterinburg and St. Petersburg appeared. If earlier business development in all regions was performed from Moscow, then now in the specified cities local representatives appeared.

In 2014 VMware had virtual offices in Novosibirsk, Yekaterinburg and St. Petersburg. Physical offices remain with the company only in Moscow, Kiev and Alma-Ata so far.

Earlier, in 2014, in the company told TAdviser that demand grows in regions as on solutions for basic, server virtualization of vSphere, and on software for management and security of private clouds which is established over the main platform, and on products for virtualization of jobs.

Especially noticeable in the company called increase in demand for virtualization software in a segment of SMB. As for the industries in which the highest sales growth is observed, also the telecom industries and also public sector concern like those financial.

Among the reasons of increase in demand, according to representatives of the company - the high level of saturation by technologies in Moscow and St. Petersburg, goes "pulling up" of regions to the level of these cities now.

Besides, very large number of customers in regions used earlier free demos licenses of software of VMware which provide functionality to a certain level. Now, when they needed more complete functionality, they began to purchase solutions, and it became noticeable in the sales volume of licenses.

2013: Growth rates of sales of VMware in Russia approach universal

At the end of 2013 Vmware expects growth of revenue in Russia at the level of 20-25%, the head of the Russian representative office Alexander Vasilenko in October, 2013 [[Vasilenko Alexander Vladimirovich|]] told. At the end of 2012 the company told about growth of turnover in the region at the level of 50%, and for 2011 the indicator on height about 100% was sounded.

In absolute measures does not open local revenue of VMware. Universal turnover of the company in 2012 made $4.61 billion, having increased by 22%. In 2011 revenue of the company grew by 32%, and at the end of 2013 its increase by 14-16% is expected.

And their approach to universal Alexander Vasilenko connects decrease in growth rates of sales in Russia with two pacing factors: with the fact that there is a saturation of the Russian market means of virtualization and also with the general strong deceleration of IT market in Russia.

At the same time Russia remains the most fast-growing market for VMware in EMEA region (Europe, the Middle East and Africa), he notes. An example of one more of the most fast-growing markets it gives Turkey in the region.

Indicators of universal business of the company are caused, including, extensive growth – entry into the new markets, the CEO of VMware in Russia notes. When they end, growth will become less, he adds.

The previous year with - the president of VMware on operational questions Carl Eschenbach told[1]that in 2-3 years he sees Russia in top three in EMEA on revenue for VMware. Alexander Vasilenko believes that in the nearest future it will not occur: "if to take, for example, such countries as Germany, Great Britain, France, then we even economically close do not approach them as the share of IT in GDP in Russia is much lower".

2011

Big prospects are offered the Russian office VMware. According to the report of IDC Quarterly Server Tracker on EMEA region for the second quarter 2011, on the supply rate of servers the market shows steady two-digit growth. In 2010 this indicator reached about 40%, and in the first half of 2011 — more than 30%. Considering that on average every fifth of servers becomes virtualized, the potential for further increase in size of the market of virtualization is huge. Further distribution of technologies of virtualization will allow the companies to manage more difficult IT infrastructure, at the same time spending less resources for administration.

The Russian market of means of virtualization in which VMware specializes conceals in itself high potential. According to Alexander Vasilenko, in Russia becomes virtualized only 18-20% of servers, and it is much lower, than abroad, but within one and a half years the level of virtualization of servers at the Russian customers of VMware can be increased to 30%. It is one of priorities of the new head of the Moscow office of the company. Besides, interest in cloud computing considerably increased in the region, and the majority of the last updates of products of VMware has cloud character.

2010: Sales growth twice

Sales to the company in Russia and the CIS countries during the period from III quarter 2009 to the III quarter 2010 grew more than twice, besides that the average indicator on the world for the same period was 47%, and on EMEA region – 50%.