Software maker VMware Inc augurs its 2010 revenue growth to be far greater than Wall Street expectations, citing that customers were becoming more comfortable about investing in new technologies after a budget crunch last year.

VMware Inc.'s (VMW) fourth-quarter profit squeezed by 49% on higher research and development costs, which lowered operating margins.

Shares of VMware witnessed a jump of 18 percent post the company also reported its fourth-quarter margins that surpassed analysts' forecasts.

The company also projected first-quarter revenue of $580 million to $600 million. Analysts polled by Thomson Reuters expected, on average, $530 million worth of earnings. VMware sees revenue in a range of $2.45 billion to $2.55 billion for the full year, while Wall Street expected $2.28 billion.

In addition, the firm also revealed that it has fetched advantage from a sales promotion that ended Dec. 15, and as customers spent money left in their budgets at the end of the calendar year.

Revenue from software license deals slid 3.4%, while revenue from services, which include subscriptions, consulting and information technology support, climbed 52%.

Also, its services segment has grabbed a significant share of total revenue in recent quarters, and nearly outweighed license sales in the fourth quarter.