VMware's (VMW) Digital Hub in Singapore to Foster Economic Growth

VMware VMW is set to benefit from the ongoing cloud-based digital revolution. In order to augment its benefits from the same, the company has increased operations in countries in the Asia Pacific region like Singapore, who are pursuing smart-nation initiatives.

VMware recently announced that it has opened a new Regional Digital Innovation Hub in Singapore. The newly opened hub is expected to empower businesses with new digital and cloud solutions, and bolster Southeast Asia’s growth as an important international technological hub.

The new hub by VMware now joins nine other virtual briefing centers located in key centers around the world, including Bangalore, Beijing, Tokyo, and Sydney in the Asia Pacific.

VMware is consistently making efforts to strategically place itself in growing economies that are making efforts to become innovation powerhouses. Singapore, as the most proficient innovation epicenter outside of the Silicon Valley, is at the heart of the Association of Southeast Asian Nations or ASEAN being on track to become a $1-trillion digital economy by 2030,

VMware’s new digital hub in Singapore is expected to drive demand for its offerings in domains like SDDC (vSphere, vSAN, NSX), hybrid cloud (vCloud Air, VMware Cloud Provider Program) and EUC (AirWatch, Horizon), and consequentially help the company gain market share.

The newly opened digital hub is expected to bolster revenue growth of the company as reflected by its revenue guidance for first-quarter fiscal 2023. For first-quarter fiscal 2023, VMware anticipates revenues of roughly $3.185 billion, suggesting year-over-year growth of more than 6.5%.

VMware currently carries a Zacks Rank # 3 (Hold). The company's shares have fallen 4% in the year-to-date period compared with the Zacks Computer - Software industry and the Zacks Computer and technology sector’s declines of 13.7% and 13.6%, respectively.

VMware, Inc. Price and Consensus

VMware, Inc. price-consensus-chart | VMware, Inc. Quote

Partnerships & Acquisitions: Key Catalysts

VMware has been consistently undertaking initiatives to diversify its product portfolio to include most aspects of the global IT infrastructure.

In order to cover most aspects of the IT infrastructure, VMware has been strategically building partnerships with companies, including Amazon’s AMZN AWS and Dell Technologies DELL, to provide various services.

VMware has partnered with Amazon’s AWS to offer an integrated hybrid cloud solution, functioning much like a Software-Defined Data Center (“SDDC”).

VMware and AWS have also expanded their partnership, which now enables the latter to resell VMware Cloud on its platform. VMware Cloud on AWS is now available in more than 17 regions globally.

Dell has been promoting VMware’s Carbon Black Cloud solutions, along with Dell Trusted Devices and Secureworks, as the preferred endpoint security solution to its commercial customers.

The partnership with Dell is driving VMware’s storage and availability business in the SDDC segment.

Stock to Consider

While VMware is a good stock to retain in your portfolio, here is a better-ranked stock that can increase your portfolio returns.

ASGN ASGN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

ASGN shares have decreased 8.2% in the year-to-date period, compared with the Zacks Computers - IT Services industry’s decline of 19.3%.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.