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AirWatch boosts VMware's EUC biz as Citrix sputters

A little over a year after acquiring AirWatch, VMware says its mobility products are driving its overall EUC growth.

License bookings for VMware’s end-user computing (EUC) products, including the AirWatch portfolio, grew over 50% in the first quarter of 2015 year-over-year, said Carl Eschenbach, VMware’s president and co-COO, on this week’s quarterly earnings call. Desktop licenses accounted for 15% of that growth, he said.

VMware didn’t break out exactly what the AirWatch numbers were, nor did it say how much revenue came from those bookings. One analyst on the call surmised that the 50% overall EUC growth and 15% desktop growth figures mean AirWatch must have grown between 75% and 100%.

It’s not clear if AirWatch is gaining share from competitors or making headway with customers who previously used no enterprise mobility management (EMM) products. CEO Pat Gelsinger said he believes there is an “untapped market” of devices that aren’t yet managed.

Overall, VMware’s revenue was $1.51 billion in Q1, up 13% compared to the same quarter last year.

The earnings picture was not as rosy for VMware’s chief EUC rival, Citrix. The company’s Q1 earnings were down $20 million from projections, up 1% from the same quarter last year.

Citrix’s mobility apps business, which includes its Worx apps suite, data sharing and collaboration, was $169 million — up 8% compared to last year. The workspace services business, with the XenMobile EMM suite and its desktop offerings, was up 2% to $369 million.

Citrix officials said they are confident the worst of the financial difficulties are behind them as the company restructures after laying off 900 employees earlier this year.

“The vast majority of the disruption caused by [the restructuring] is already out there and known, and we are on the downhill side of working through that,” said David Henshall, Citrix’s COO, CFO and executive vice president.

New products to be unveiled at next month’s Citrix Synergy conference are part of attempts at stoking more revenue. CEO Mark Templeton said on the call that he would wait until the conference to get into specifics.

“There will be some market opportunities that open up because of these new releases,” he said.

In a interview earlier this month, Templeton hinted that Citrix will make a bigger move into the Internet of Things arena at Synergy.

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