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VMware Announces Partnerships with Healthcare Organizations

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VMware recently entered into partnerships with various healthcare organizations including Moffitt Cancer Center and VITAS Healthcare. Notably, the health centers will be leveraging the company’s robust healthcare solutions to improve cost and quality of patient care.

VMware’s continued innovations in the healthcare IT space resulted in the creation of a digital clinical workplace on a single device, Workspace ONE. This device benefits patients by not only helping them comprehend their diagnosis and alternative treatment options but also keeps the patients connected outside the four walls of the hospital by providing access to social media platforms and games.

VITAS Healthcare has deployed Workspace ONE in its daily operations. This helps healthcare providers in getting immediate access to patient information, while being away from the hospital. Since the solution can be deployed on hospital-owned or care provider’s personal devices, it benefited the company in reducing device related costs for clinical work station by 35%.

Moffitt Cancer Center uses the company’s NSX solutions to help protect patient information. Further, NSX allows the company to securely exchange research information with other universities and research centers around the world, lowering Moffitt’s legacy model expenses.

VMware, Inc. Price and Consensus

VMware, Inc. Price and Consensus | VMware, Inc. Quote

 

Healthcare Cloud Market Growth Prospects

Healthcare cloud is used by healthcare providers for storing, maintaining and backing up personal health information (PHI) of patients.

Per reports from MarketsandMarkets, the global healthcare cloud computing market is expected to reach $44.93 billion by 2023 from $19.46 billion in 2018, rising at a compounded annual growth rate (CAGR) of 18.2%.

VMware has placed itself well to benefit from the increasing adoption of cloud-based solutions.

Notably, VMware added innovative features to Workspace ONE platform and extended modern management and security across the platform in the last reported quarter.

The company has partnered with Amazon Web Services (AWS) to offer an integrated hybrid cloud solution, functioning much like a software-defined data center (SDDC).

Further, VMware expanded partnership with IBM (IBM - Free Report) to include a new IBM Service offering that will help migrate and extend mission-critical VMware workload to IBM Cloud in the last reported quarter.

In the last reported quarter, Hybrid Cloud and Software as a Service (SaaS) represented 10% of total revenues and grew 35% year over year. VMware Cloud Provider Program (VCPP) increased 30% from the year-ago quarter.

Zacks Rank & Stocks to Consider

Currently, VMware carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the same sector include Jabil, Inc. (JBL - Free Report) , MeetMe, Inc. and Twilio Inc. (TWLO - Free Report) . All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Long-term earnings growth rate for Jabil, MeetMe and Twilio is projected to be 12%, 20% and 9%, respectively.

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