VMware promises revenue increase

Software company VMware promised annual revenue growth of up to 20% by 2016 and, with parent company EMC, announced a new venture with a $1bn (€768m) revenue target, sending shares of both companies higher.

Pivotal will include VMware’s Cloud Foundry application service, as well as EMC’s Greenplum data analytics software and other products. EMC, the world’s biggest maker of data storage equipment, owns 80% of VMware.

Both firms are hoping Pivotal will cash in on an expected jump in demand for data analytics software as firms like telecom service providers want better tools to analyse masses of data from multiple technology platforms.