The headline numbers for VMware are troubling, but the company's hefty investments are paying off.
Sales growth is slowing - VMware's fourth-quarter revenue increased 10 percent to $1.87 billion, a slide from 15 percent growth in the same period a year earlier - and its stock price is down 40 percent over the past year. On Tuesday VMware announced the "realignment" of about 800 positions and the departure of chief financial officer Jonathan Chadwick.
There's an emerging growth driver, however.
NSX, the business focused on virtualizing communication networks so they can be controlled and managed with software, more than tripled over the past year and now generates revenue at a $600 million-a-year run rate.