VMware Russia VIEMVARE RUS

In January 2019, VMware created a legal entity in Russia - Viemvare Rus LLC, the founders of which are the Irish subsidiaries of the company. Viemvare Rus was created mainly for marketing functions - promoting VMware products and services in the local market, the company explained to TAdviser.

Office managers

• since October 2011 - Head of the Representative Office in Russia and SNGVasilenko Alexander.

• Since May 1, 2009 - the head of the representative office in Russia and the CIS, Antich Anton, who previously worked in the same company for two years as a director for work with partners.

History

2022

Liquidation of legal entity

According to the Unified State Register of Legal Entities, since September 28, 2022, Viemvare Rus LLC has been under liquidation. The founders of the Russian legal entity are the Irish companies Viemvare International Marketing Limited (with a 1% share) and Viemvare International Anlimited Company (with a 99% share) (data as of December 2022).

Stopping software certificates in Russia

As it became known at the end of March 2022, the Federal Service for Technical and Export Control (FSTEC) suspended certificates for, software IBM,, and Microsoft Oracle SAP VMware a number of other foreign manufacturers. In total, 56 certificates were frozen by March 25. More. here

VMware imposed restrictions on sanctioned customers in Russia

Against the background of events, it To Ukraine VMware acts in accordance with the sanctions imposed on the Russia government USA and allies, and therefore stops doing business with sanctioned customers. This follows from a VMware message published in early March.

This includes, but is not limited to:

• no new sales transactions with sanctioned customers;
• termination of support, subscription contracts and professional services with sanctioned customers;
• blocking the delivery of product licenses sold by VMware partners to sanctioned customers.

VMware announced the termination of cases with customers under sanctions

In the Telegram channel "ZaTelecom" there was information with a screenshot that one of the customers had deactivated the e-mail in the VMware client service, and because of which it became impossible to enter his personal account. According to the author of the channel, many different similar screenshots are sent to him.

In the comments to the post on the Pikabu website, one of the users claims that VMware is fulfilling applications, but with delays.

From VMware's message, it follows that the company continues to support its employees in Russia who have faced negative consequences.

2020: TAdviser interview with Head of Representative Office Alexander Vasilenko

In May 2020, Alexander Vasilenko, head of VMware's representative office for the Russia and CIS region, told TAdviser what the new combination of IT and business will look like in the near future, and why remote work will teach the company to combine the convenience of work for employees with business security. Read more here.

2019: VMware says' aggressive'business growth in Russia

VMware's business in Russia in 2018 grew at a much faster pace in dollars than the global average, Alexander Vasilenko, head of the company in Russia and the CIS, told TAdviser. He chose not to disclose the dynamics in absolute terms, but described the growth as "very aggressive."

VMware's global revenue in the reporting year, which ended for the company on February 1, 2019, amounted to $8.97 billion, which is 14% more than a year ago. The rise was facilitated by the transition of VMware to a cloud business model, in which the vendor actively attracts partners.

Cloudy services have become one of the drivers of revenue growth in the company and in Russia. According to Vasilenko, the VMware Cloud Provider Program (VCPP) business was developing especially dynamically. This is a program in which partners offer VMware solutions as software a service. This direction, according to Vasilenko, grew several times faster than the rest of the company's business.

Clouds have become a driver of VMware growth in the world and in Russia "(photo - TAdviser)"

According to the head of VMware in Russia and the CIS, the latter is partly due to the deferred demand for infrastructure resources. Against the background of crisis phenomena, many customers tend to adhere to budgets for these purposes, which is why "technological debt" accumulates. But sooner or later it needs to be given away and invested in the IT infrastructure.

And secondly, there is a feeling that customers have become more trusted in external cloud solutions, said Alexander Vasilenko in a conversation with TAdviser. If earlier they preferred to store almost everything on their own infrastructure, now this has changed.

At the same time, we are talking about customers of all levels. If earlier the situation could differ depending on the size of the company, now we see projects in very small companies and very large customers, "says Alexander Vasilenko.

This was influenced by both the psychological and financial factors: customers saw that by using the cloud infrastructure, economic benefits can be obtained in one form or another. This is especially true against the background of economic uncertainty, when customers are afraid to make risky large investments - to invest in physical infrastructure. Clouds allow you to allocate investments in time and pay only for the amount of resources that are really needed at a particular moment in time.

At the same time, the Russian market is influenced by political moments affecting the composition of the main players. For example, Amazon does not have a data center in Russia, which is why its share in the cloud services market is not as large as in the United States and Western Europe.

Against this background, local players such as MTS, DataLine, Rostelecom, SberCloud and others have more space, notes Alexander Vasilenko. Many of them understand that due to the political situation in the near future, global players are unlikely to come to the Russian market, and are actively developing. This is also supported by the VMware platform.

One of the trends in the field of virtualization in Russia is the transition from basic virtualization to expanding the range of technologies that customers implement. For example, Vasilenko highlighted a fairly fast adaptation of network virtualization technologies. At first, there were many pilot projects, but there were no massive implementations, and now the NSX (network virtualization platform) direction is becoming mainstream for both large and small customers. Customers are also interested in hyperconverged systems, Kubernetes, etc.

Another trend, says Alexander Vasilenko, is to move away from component virtualization, when NSX, vSAN, basic virtualization, etc. projects were separate. Now there are more and more projects when VMware Cloud Foundation is sold as the basis for the customer's platform. In Europe and the United States, such a paradigm shift occurred 2-3 years ago. VMware Cloud Foundation, from the company's point of view, is an "operating system" for SDDC data centers (Software-defined datacenter, software-defined data center).

Following the global trend, another trend can be called the spread of the use of Kubernetes technology in Russian organizations - an open source platform for managing container applications and related network and storage components. The Russian office of VMware says that Kubernetes is already available almost everywhere. From communication with customers it follows that someone has already deployed, someone is planning, someone is actively developing. At the same time, Kubernetes are also adopted by government agencies.

In October, TAdviser was also told about the increase in business volumes in Russia, despite the not very simple political and economic situation in another American company, Oracle. As with VMware, clouds are also an important growth driver for Oracle. Read more here.

According to the TAdviser ranking of the 50 most profitable representative offices of foreign IT companies in Russia, according to the results of 2018, their revenue mainly showed growth, although it is necessary to make a reservation that not all transactions pass through local offices. Many contracts are concluded directly with foreign legal entities of these companies.

2016: VMware revived business "sagging" in Russia with anti-crisis discounts on products

The Russian business unit VMware in 2016 showed the highest growth rate of revenue in dollars in Europe. This was announced in March 2017 by TAdviser Jean-Pierre Brulard, Senior Vice President and General Manager of the EMEA region. He preferred not to name the growth and revenue volumes in absolute terms.

The top manager added that the Russian office also overtook other European countries in terms of the level of implementation of the sales plan.

The growth of turnover was preceded by difficulties with sales Russia in amid the complicated geopolitical and economic situation. In the 3rd quarter of 2014, for example, the CEO of VMware (Pat Gelsinger Pat Gelsinger) cited data that the volume of orders in Russia decreased by more than 50% year-on-year. In October 2015, the vice president of VMware in the CEMEA region (Luigi Fregua Luigi Freguia) spoke about the previous decline in sales in dollars due to the crisis. Also in 2015, the President and Operations Director of VMware (Karl Eschenbach Carl Eschenbach) noted that Russia remains a difficult region due to the economic situation.

Jean-Pierre Broulard believes that in 2017 it will be difficult for the Russian team to maintain the same growth rate

To improve sales indicators in the Russian market in 2015-2016. allowed a special pricing policy, which VMware began to adhere to in Russia amid the crisis. Jean-Pierre Broulard told TAdviser that the company has set prices for its products here at a level that allows them to offset their significant rise in price for Russian customers due to the growth of exchange rates. This is a "special discount for Russia," said a top manager at VMware in a conversation with TAdviser.

The company applies flexible prices to both licenses when purchasing new products and product updates already installed with customers. The flexible price policy applies to all customers in Russia, says Brular. According to him, every six months VMware revises the fixed prices for the Russian market, taking into account changes in exchange rates.

It is worth noting that during the crisis, VMware was not the only foreign vendor to resort to flexible pricing in the Russian market. SAP CIS, for example, in 2015 began to pay for existing technical support contracts in Russia at a fixed low euro exchange rate.

According to Jean-Pierre Broulard, the driver of VMware business growth in Russia in 2016 was the need of Russian organizations for IT modernization, which remains despite the difficult economic situation. Among the industries for which this is especially relevant, he calls the financial sector: banks need to develop new digital services for customers. According to Brular, cooperation with a number of large banking organizations, including Sberbank and the Central Bank, gave confidence to VMware's business in Russia in 2016.

The demand for virtualization solutions in VMware is also noted in the segment of telecommunications companies. A major project for the company here was a project on virtualization of network services for one of the largest Russian operators, which began in 2016.

A VMware representative notes the need for modernization in the Russian public sector, although here the process, in his opinion, is moving a little slowly. Helping VMware's business in the public sector in 2016 was cooperation with the computer manufacturer Aquarius, says Jean-Pierre Broulard. It has become an OEM partner of VMware and delivers virtualization software as part of its products.

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

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

The top manager of VMware added that amid the crisis, his company did not reduce the team of the Russian office, unlike some other American companies, which in some cases significantly optimized the staff.

2015: VMware awaits a big "defrosting" of projects in Russia

Some time ago, sales VMware Russia in dollars decreased significantly, but now the situation is stabilizing, the vice president of VMware in the CEMEA region (Luigi Fregua Luigi Freguia) told TAdviser in October 2015. According to him, VMware is satisfied with the current results of the activities of the Russian division in both dollars and local currency.

Luigi Fregua believes that VMware in Russia is doing better during the crisis than its competitors

Specific data on the dynamics of the company's sales in Russia in 2014-2015. Fregua and the local division of VMware TAdviser refused to provide. Earlier, speaking about the interim results of VMware, its CEO Pat Gelsinger cited data that in the 3rd quarter of 2014, the volume of orders in Russia decreased year-on-year by more than 50% due to geopolitical friction. Later, following the results of the 2nd quarter of 2015, VMware President and COO Carl Eschenbach noted that Russia remains a difficult region due to the economic situation.

Due to the devaluation of the ruble VMware in 2014-2015. faced a "freeze" of projects from customers in Russia - their postponement or suspension for some period, said TAdviser, head of the Russian division of the company Alexander Vasilenko. First of all, customers freeze investment projects designed for the long and medium term, and look at what they could do in-house, without an IT supplier. At the same time, projects in the regions are "frozen" tougher than in the center, says Vasilenko.

Alexander Vasilenko stopped providing data on the dynamics of VMware sales in Russia, citing the fact that the company's disclosure policy has become more stringent

He could not assess the scale of "frozen" projects, but noted that in the 4th quarter of 2015, we can expect a large deferred demand for virtualization solutions through such projects.

"Our projects are usually frozen last, because it is easier for us to show the return of the project" head-on. " We relate to the type of companies that, even during a crisis, can reasonably explain to customers not only at the CIO level, but also to the CFO and others why we need to buy our products, "says the head of VMware in Russia

Alexander Vasilenko also said that given the difficult economic situation and rising prices for products due to the growth of the dollar, VMware at the end of 2014 developed a special program for the Russian market, under which customers can purchase its products on special, more flexible conditions.

He added that VMware technologies can be estimated at the total cost of ownership and calculate how much money will be saved through virtualization, and usually these parameters overlap the costs that go to the acquisition of these technologies, even taking into account the fallen ruble exchange rate.

According to Vasilenko's observations, against the background of a difficult economic situation, the pace of virtualization in Russia has increased: "during the crisis, it is easier to convince the company's management that something needs to be changed." According to him, on average in the Russian market, the level of server virtualization exceeded 40% and is approaching 50%. In companies with more than 1,000 IT users, this figure may be even higher - up to 80%.

Against the background of the crisis, according to Vasilenko, customers have become more focused on solutions based on SPO as an alternative to vendor products. At the same time, he believes, this is an illusion that software is absolutely free: in reality, it may turn out that additional development will cost more than buying proprietary solutions. In addition, it is necessary to spend on specialists who can support solutions on tripping. He added that in many cases, customers use both SPO and VMware technologies in projects.

2014: Increasing Demand for Virtualization Software in the Regions

In 2014, there was a significant increase in demand for virtualization solutions in the Russian regions, and therefore during this period the share of regional business in the company's total revenue structure increased, Alexander Vasilenko, head of VMware's Russian office, told TAdviser in February 2015.

According to him, if you look at the top 10 VMware projects in the field of introducing virtualization technologies for end users in Russia in 2014, then three of these projects are in the regions, while a year ago all ten projects were in Moscow and St. Petersburg. At the same time, even St. Petersburg accounted for a small share of them, says Vasilenko. According to the results of 2014, the largest regional projects took place in the telecom sector and the banking sector.

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

In 2014, VMware had virtual offices in Novosibirsk, Yekaterinburg and St. Petersburg. The company still has physical offices only in Moscow, Kyiv and Alma-Ata.

Earlier, in 2014, the company told TAdviser that demand in the regions is growing both for solutions for basic, server virtualization vSphere, and for private cloud management and security software, which is installed on top of the main platform, and for desktop virtualization products .

The company called the increase in demand for virtualization software in the SMB segment especially noticeable. As for the industries in which the highest growth in sales is observed, these include the financial and telecom industries, as well as the public sector.

Among the reasons for the increase in demand, according to company representatives, is the high level of saturation with technologies in Moscow and St. Petersburg, now the regions are being "pulled up" to the level of these cities.

In addition, a very large number of customers in the regions previously used free demo licenses of VMware software, which provide functionality to a certain level. Now that they needed more complete functionality, they began to purchase solutions, and this became noticeable in the volume of license sales.

2013: VMware sales growth in Russia nears global

According to the results of 2013, Vmware expects revenue growth in Russia at the level of 20-25%, said the head of the Russian representative office Alexander Vasilenko in October 2013. According to the results of 2012, the company talked about the growth of turnover in the region at the level of 50%, and in 2011 the growth rate was announced about 100%.

In absolute terms, VMware does not disclose local revenue. The company's global turnover in 2012 amounted to $4.61 billion, an increase of 22%. In 2011, the company's revenue grew by 32%, and by the end of 2013 it is expected to increase by 14-16%.

Alexander Vasilenko associates the decline in sales growth in Russia and their approach to the global ones with two main factors: the fact that the Russian market is saturated with virtualization tools, as well as with the general strong slowdown in the IT market in Russia.

At the same time, Russia remains the fastest growing market for VMware in the EMEA region (Europe, the Middle East and Africa), he notes. As an example of another of the fastest growing markets in the region, he cites Turkey.

The indicators of the company's global business are due, among other things, to extensive growth - access to new markets, said the general director of VMware in Russia. When they are over, the growth will be smaller, he adds.

A year earlier, VMware co-president for operational affairs Carl Eschenbach told^[1]which in 2-3 years he sees Russia as the top three in EMEA in terms of revenue for VMware. Alexander Vasilenko believes that this will not happen in the near future: "if we take, for example, such countries as,, Germany Great Britain then France we do not even come economically close to them, since the share of IT GDP in Russia is much lower."

2011

Great prospects are open before the Russian office of VMware. According to the IDC Quarterly Server Tracker report for EMEA for the second quarter of 2011, the market is showing solid double-digit growth in terms of server shipments. In 2010, this figure reached approximately 40%, and in the first half of 2011 - more than 30%. With an average of one in five servers virtualized, the potential to further expand the virtualization market is enormous. Further adoption of virtualization technologies will enable companies to manage more complex IT infrastructure while spending less resources on administration.

The Russian market for virtualization tools, which VMware specializes in, has great potential. According to Alexander Vasilenko, only 18-20% of servers are virtualized in Russia, and this is significantly lower than abroad, but within a year and a half, the level of server virtualization among Russian VMware customers can be increased to 30%. This is one of the priorities of the new head of the Moscow office of the company. In addition, interest in cloud computing has noticeably increased in the region, and most of the latest updates to VMware products are cloud-based.

2010: Sales growth by 2 times

Sales of the company in Russia and the CIS countries in the period from the third quarter of 2009 to the third quarter of 2010 increased more than 2 times, while the global average for the same period was 47%, and for the EMEA region - 50%.