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Happy Monday everyone 💻
Today we'll cover recent developments from few index companies.
New Relic's Transitioning to Private
- Going Private: New Relic, the all-in-one observability platform, has entered into a definitive agreement to be acquired by Francisco Partners and TPG for $6.5 billion. The move towards privatization comes alongside strong first-quarter results for fiscal year 2024.
- In Q2 2023, Total revenue for the quarter reached $242.6 million, up 12% YOY with consumption revenue rising 39%. Gross margins improved significantly to 77.6% from 70.5% the previous year, with non-GAAP gross margin at 79.4%.
- Operational Shift: The company reported a decrease in the loss from operations to $(33.0) million from $(55.7) million and saw a non-GAAP operating income of $36.4 million. The transformation is also marked by an enhancement in operating margins and growth in free cash flow.
- New Relic withdrawn of fiscal 2024 guidance due to the pending transaction.
Broadcom's Acquiring VMware's
- Acquisition Approval: Broadcom, a global manufacturer of hardware components for computer servers, has received clearance to acquire VMware. The deal, scrutinized by the UK's Competition and Markets Authority (CMA), has been valued at $69 billion and raises no concerns regarding competition or innovation in the UK market.
- VMware is a leader in server virtualization technology, VMware creates software that enhances server efficiency.
- Why This Acquisition? The merger aligns with Broadcom's hardware expertise, promising to innovate and provide complete solutions in the industry.
- Q1 Performance: VMware's first quarter of fiscal 2024 showcased total revenue of $3.28 billion, a 6% increase from the previous year. Subscription and SaaS revenue saw a remarkable 35% year-over-year growth.
Read more on VMware's acquisition on Barron's.
HashiCorp's State of Cloud Survey
- Boosting Cloud Spending: HashiCorp's State of Cloud Strategy Survey 2023 shows that 48% of tech industry respondents have increased their cloud spending despite worldwide macroeconomic uncertainty.
- Platform Teams are Pivotal: A standout observation is that 91% of tech firms rely on centralized platform teams to enable cloud adoption and operation. This reflects a major organizational approach and offers efficiency, standardization, security, and improved collaboration.
- Challenges and Opportunities: The survey also sheds light on barriers such as compliance and risk management (29%), skills shortages (28%), and team silos. However, the benefits of uptime, infrastructure scaling, budget considerations, and security highlight the transformative potential of multi-cloud in the tech industry.
Read the full survey result: https://www.hashicorp.com/blog/hashicorp-state-of-cloud-strategy-survey-2023-the-tech-sector-perspective
HashiCorp
HashiCorp State of Cloud Strategy Survey 2023: The tech sector perspective
Technology firms are using multi-cloud to improve their business outcomes in many ways, from boosting reliability to dealing with skills shortages.
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