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Thursday, August 10, 2017

A Closer Look At VMware's R&D Budget

#VMware has been one of the fastest-growing software companies this decade, with the company commanding a sizable share of the virtualization market. The virtualization software market began expanding massively in late 2000s, with initial server virtualization capabilities leading the way for companies to subsequently develop #softwaredefinedstorage and network virtualization (or #softwaredefinednetworking ) products and services. As a leading virtualization provider, the company has benefited significantly from its strong presence in a fast-growing market space. Research and development efforts are generally the lifeline of software and technology companies. Tech companies often spend a significant percentage of their revenues on R&D to stay relevant in a quickly evolving landscape. As VMware continues to mature, it is imperative for the company to manage its operating expenses to diminish the impact of revenue growth slowdowns (due to large base factor) on net cash profits. To quantify the company’s operational efficiency, the revenue generated per dollar spent on R&D expenses can be regarded as a key indicator for operational efficiency
https://www.forbes.com/sites/greatspeculations/2017/08/09/a-closer-look-at-vmwares-rd-budget/?c=0&s=trending#27a21db01365

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