VMware 2009 Annual Report Download - page 50

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Table of Contents
Results of Operations
Revenues
Our revenues for the years ended 2009, 2008 and 2007 are as follows:
Total revenues were $2,023.9 in 2009, $1,881.0 in 2008, and $1,325.8 in 2007, representing year-over-year increases of $142.9 or 8% in
2009 and $555.2 or 42% in 2008. The revenue mix in 2009 reflected a decrease of $148.7 in license revenues and an increase of $291.6 in
services revenues as compared with 2008. The revenue mix in 2008 reflected an increase of $272.8 in license revenues and an increase of $282.4
in services revenues as compared with 2007. The shift in our revenue mix year-over-year is primarily due to a decline in license revenues as a
result of the macroeconomic environment, while services revenues benefited from strong maintenance renewals, multi-year software
maintenance contracts sold in previous periods, and additional maintenance contracts sold in conjunction with software licenses. In addition, the
growth in services revenues year-over-year in 2009 increased as a result of customers becoming current on their maintenance agreements in
order to receive vSphere as part of those arrangements. As we focused on recovering back maintenance during 2009, we anticipate revenue from
back maintenance to decline in 2010 as customers have become current. International revenues as a percentage of total revenues continued to
increase primarily due to our expansion of operations outside of the United States, as well as growing international demand for virtualization
technologies.
We sell our products primarily through a network of channel partners, which includes distributors, resellers, x86 system vendors and
systems integrators. As we expand geographically, we may add additional direct channel partners. Our indirect channel partners obtain software
licenses and services from our distributors and x86 system vendors and market and sell them to end user customers. In addition, we have a direct
sales force that
47
For the Year Ended December 31,
2009
2008
2007
Revenues:
License
$
1,029.4
$
1,178.1
$
905.4
Services:
Software maintenance
823.8
555.9
330.0
Professional services
170.7
147.0
90.4
Total services
994.5
702.9
420.4
$
2,023.9
$
1,881.0
$
1,325.8
Percentage of revenues:
License
50.9
%
62.6
%
68.3
%
Services:
Software maintenance
40.7
29.6
24.9
Professional services
8.4
7.8
6.8
Total services
49.1
37.4
31.7
100.0
%
100.0
%
100.0
%
Revenues:
United States
$
1,039.0
$
987.6
$
720.6
International
984.9
893.4
605.2
$
2,023.9
$
1,881.0
$
1,325.8
Percentage of revenues:
United States
51.3
%
52.5
%
54.4
%
International
48.7
47.5
45.6
100.0
%
100.0
%
100.0
%