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VMware

Company

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VMware company – solution provider for virtualization of infrastructure of business. EMC subsidiary company.

Owners:
Dell Technologies - 80%
Carl Icahn

Content

Revenue and Net Profit billions Thousand rub

Number of employees

Assets

Owners

+ VMware

Performance Indicators

Main article: Financial performance of VMware

2019: Growth of revenue to $10.81 billion

Revenue of VMware according to the results of 2020 financial year closed on January 31 the 2020th calendar revenue of VMware for the first time passed for $10 billion and reached $10.81 billion.

In 2020 reporting year VMware received from sales of software licenses $3.18 billion against $3.04 billion the previous year. Service income reached $5.75 billion that significantly exceeds an indicator of year prescription in $5.27 billion. Services of support of software brought to the American vendor about $4.75 billion turnover, in 2019 financial year income was measured by $4.35 billion. Income from rendering professional services raised from $917 million to $999 million.

Revenue of VMware for the first time passed for $10 billion and reached $10.81 billion

The annual income from sales of subscriptions on SaaS- solutions was $1.88 billion that for 44% exceeds result of year prescription. More than 17% of total revenue were the share of this business. Here the products VMware Cloud Provider VMware Cloud on AWS Pivotal, EUC/Workspace One (a part of income gained in service quality) belong Carbon Black CloudHealth Technologies VeloCloud Horizon Cloud, Wavefront and AppDefense.

The net profit of VMware in 2020 to a fiscal year was equal to $6.41 billion, having increased almost by 4 times of rather previous year.

VMware announced the record number of contracts selling software to corporate clients — 31 in comparison with 23 the previous year. In the financial statement it is also told about "significant increase" in cost of a subscription and offers of SaaS in ten the largest transactions. It more than twice exceeds the level of year prescription.

To closing of the New York Stock Exchange in day of the publication of financial statements the quotation rate of VMware made $135.63 that is 6% less, than a day earlier. At electronic biddings securities fell in price by 6.6%, up to $126.66. The share price fell because the profit of the producer of means of virtualization fell short of expectations of Wall Street.[1]

Business in Russia

Основная статья: VMware Russia

Purchase and sale of the companies

History

2020

Transfer up to 60% of employees for an udalyonka

At the end of May, 2020 VMware announced that it will forever leave up to 60% of employees on remote work. Details were given by the CEO of the company Pat Gelsinger in a conversation with CNBC TV channel.

According to him, before the crisis caused by the outbreak of a coronavirus of COVID-19 from the house in VMware worked about 20% of employees. In the period of a pandemic most of workers were transferred to an udalyonka.

VMware will forever leave 60% of employees on an udalyonka
«
On my expectations, continuing to work in this direction [use of remote work – the comment of TAdviser], we will reach an indicator in 50-60% [a share of the employees working far off] over time. It seems, it is not absolutely normal … We double, we triple the amount of remote work — the head of VMware said.
»

Gelsinger emphasized that the current events in the world instill confidence that technologies  — the software and cloud computing, in particular  — will pass the crisis period easier, than other spheres of economy.

«
Sometimes ten years are required to provide week of progress. Sometimes week gives you decade of progress — Gelsinger explained —  it is unexpected, education, health care and remote work take huge steps forward. 
»

As of January 31, 2020 the number of staff of VMware was measured about 31 thousand employees working at 169 offices worldwide. According to Gelsinger, many small auxiliary offices can be closed, but only not the headquarters in Silicon Valley which is among priority plans of the company for next years.

«
It will be transition from hotel offices to the center of joint work.  I consider that our presence here generally will remain the same, but we are going to change its character considerably. Exactly here we intend to integrate to implement innovations, to build community, to reestablish culture and communication between people — Gelsinger reported.[2]
»

Penalty of $236 million for theft of technologies for a management system for IT processes

At the end of January, 2020 the court issued the decree according to which VMware will have to pay $236 million Densify company (develops software for cloud optimization) for theft of technologies for a management system for IT processes of vRealize.

The court came to a conclusion that VMware used others practices, having violated patent rights, and created conditions for unfair competition which caused damage to Densify. Case of patent infringement concerns new versions of software of production of VMware. Densify claims that VMware vRealize Operations (vROps) 7.0, vRealize Operations 7.5 and Predictive DRS is broken by two Densify patents on optimization of use of computation processes in a cloud and local data processing centers. Algorithms Densify vROps of versions 7.0 and 7.5 are too similar to Densify patented by software for predictive analytics, and Predictive DRS is similar to the basic Densify function which provides the predicted schemes of use of resources.

The court issued the decree according to which VMware will have to pay $236 million Densify company (develops software for cloud optimization) for theft of technologies for a management system for IT processes of vRealize

Densify claims that VMware violated not only the intellectual property right, but also the right to the trademark as created confusion in minds of consumers which causes damage to Densify business. VMware not only copied others technology, but also used the name "Densify" concerning products of VMware.

«
VMware uses the trademark of our company to increase the commercial value of the products and services, referring to the products of optimization Densify mentioned by awards, said in the complaint of Densify.
»

In last Densify actively cooperated with VMware in the field of technology integration, but in recent years the companies became competitors. Prezhdedensify never took legal action concerning patent questions. The representative of VMware told CRN that the company intends to continue fight, hoping to prove the innocence.[3]

Purchase of the developer of an AI system for job analysis of Nyansa networks

On January 21, 2020 VMware announced Nyansa acquisition, but the cost of the transaction of the company did not begin to be disclosed. Read more here.

2019: The average salary — $158 thousand.

2018: The billionaire Karl Icahn took shares of VMware

In April, 2018 Karl Icahn purchased a share in VMware that can indicate the forthcoming restructuring in the company. Read more here.

2017

"I work not for Michael Dell". The CEO of VMware about independence of the company after merge of Dell and EMC

The CEO of VMware Pat Gelsinger convinces of lack of the controlling business impact of the company from Dell to which VMware passed after acquisition of EMC in September, 2016. A year later after end of this transaction Gelsinger told TAdviser that independence is one of three main characteristics of the relations of VMware and Dell. He noted that VMware continues to work as separate company with own Board of Directors.

«
I work not for Michael Dell, I work for Board of Directors, - he told, answering a question of TAdviser. - VMware was controlled Board of Directors and continues to be controlled it. We continue to remain the independent company with our own mode of work in the market.
»

By words Peta Gelsingera, the relations of VMware with Dell can be characterized three words: independence, ecosystem, gain

Other two words characterizing the relations with Dell, the CEO of VMware calls "gain" and "ecosystem". VMware expects to reach the strengthening effect for the business because Dell sells and invests in its products.

Regarding an ecosystem Gelsinger noted that Dell does not interfere with development of an extensive ecosystem of VMware, including expansion of partnership with the companies which for Dell are competitors.

It is about the companies like IBM, HP, Lenovo. In August, 2017, for example, VMware expanded partnership with HP, having integrated software with HP service "device as service" (device as a service).

In 2016 VMware announced strategic partnership with IBM, and in September, 2017 at the VMworld Europe conference itself also announced Dell EMC that it will offer the clients software of VMware in a cloud platform of IBM Cloud.

Earlier in VMware assumed that Dell can negatively influence development of partner relations which are for the last competitors, including IBM and HP. It is mentioned in the list of risks for the company in the annual report of VMware for 2016.

Now Pat Gelsinger notes synergy effect of the relations with Dell and considers that the last benefits from an ecosystem of VMware, citing as an example the relations with IBM.

«
At the expense of VMware and our partnership with IBM now and Dell announced partnership with IBM. It is in many respects result of that work and innovations which we did together with IBM. Now it turned back advantage for Dell, - the CEO of VMware told TAdviser.
»

He added that in general in VMware are very happy how the relations with Dell develop. The company announces large partnership with other companies, such as Lenovo, HP, Amazon, but also with Dell works more closely.

VMware enters the market of Internet of Things

In the first half of 2017 of VMware is going to issue the first solutions for the industry of Internet of Things (Internet of Things, IoT). In February told about it Mimi Spier TAdviser, the marketing vice president, to business development and the strategy of the IoT VMware direction.

To the official announcement in the company prefer not to open what products it will bring to the market. However follows from Mimi Spiyer's words that it will be solutions of infrastructure level. Internet of Things requires new type of the infrastructure including sensors, networks and other components. It is necessary to unroll, manage and ensure it safety, she notes. VMware works on solutions which would allow clients to do it in the simplest way.

The existing technologies of virtualization historically being the main competence of the company will be involved in products of VMware for Internet of Things. However the volume of development much wider and includes many other things, Mimi Spiyer says. According to her, the company invests in creation of absolutely new opportunities intended especially for IoT.

VMware is going to increase the state of a pozrazdeleniye of IoT in the short term significantly

New products are focused, first of all, on use in the automobile/transport industry, retail, power, during creation of "smart" buildings, in a public sector and health care. At the same time the company is going to create as universal solutions which could be used in the different industries, and the joint solutions with partners considering industry specifics.

As on the direction of business, new to itself VMware began to look at Internet of Things about three years ago, told Spiyer TAdviser. About a year ago the company decided that suitable time for IoT entry into the market came, and defined for itself the strategy of development of this business.

For the new direction the company created special division which number as of the beginning of 2017 is about 40 people. Mimi Spiyer says that in the long term the staff of this division can be calculated by several hundred people. In addition to the staff of the IoT-division, the much bigger number of specialists from other divisions is involved in development of this business.

Spiyer notes that VMware is open also for an opportunity to expand the IoT direction due to acquisition of other developer companies in this area.

For development of new business of VMware it is interested in the partners connected with this sphere. The companies connected with hardware solutions, system integration, developers of IoT-platforms, analytics of data and creating applications are of the main interest to it. In 2016 VMware created alliances with Bayshore Networks companies Dell EMC, Intwine Connect, Deloitte Digital, PTC and V5 Systems.

In 2017 the company also set partnership with small company VizExplore – developer of analytical solutions with which VMware is going to create solutions for health care jointly. Potentially with it it is possible to cooperate also in other areas, including IoT, Spiyer says.

The new partner was the Harman company which has special products for Internet of Things, including hardware and analytical solutions, reported Mimi Spiyer's TAdviser. One of the directions of partnership – providing a 5G services for cars, using technologies of VMware for virtualization of network services.

The representative of VMware noted that the release in 2016 of the product Liota – a developer kit of software (SDK) with the open code using which it is possible to create protected applications for data management of IoT and control over them became the first step in the direction of IoT for the company.

«
We love open source. As the company, we move closer and closer to the Open source software and we cover community of developers. We already have partners in this area which we did not announce yet, - Mimi Spiyer in a conversation with TAdviser noted.
»

Spiyer noted in a conversation with TAdviser that the segment in which VMware will provide products was less competitive, than the company initially thought. It is not that area on which many want to be focused as technology it rather difficult, the representative of VMware says.

2016

Cooperation with partners in development of Internet of Things

On September 5, 2016 VMware announced strategic partnership in the field of [[Internet of Things: be in time it is impossible to remain|Internet of Things of Internet of Things (IoT)]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]] with Bayshore Networks companies Dell, Intwine Connect, Deloitte Digital, PTC and V5 Systems.

Plans of partners assume assistance to reduction of a gap between the world of IT and operational technologies.

Internet of Things, (2016)

The companies aim to integrate Internet of Things into the business and solutions for clients, but for achievement of a maturity of this technology, necessary level and scale, it needs to change. For August, 2016 projects in the field of Internet of Things conduct, generally operational divisions of the enterprises, but passing from pilot projects to implementations at the level of the enterprises, effective management and security requires participation of IT. VMware is going to help with the solution of this task and to give the chance of IT to provide business with necessary infrastructure to maintain its continuity. VMware will also help OT - commands to arrange management and transactions with IoT to scale these elements of Internet of Things on all infrastructure of the company.

«
Internet of Things is considered the largest of accessible markets from the moment of emergence Internet, and the true potential of technology IoT just should be up implemented to standard business. As the company which delivers technology innovations for nearly 20 years we will use our key advantages in the field of device management, operational analytics and security to offer our customers specialized IoT-solutions. Our joint work with partners will help customers to provide their strategic needs for IoT-applications, analytics, the equipment and services that finally will allow to expand their scope from DPC and clouds to the periphery.
»

«
Jointly Dell and VMware provide to the general clients and partners the choice and flexibility of implementation of technologies of Internet of Things. VMware helps us to pave the way for IoT-innovations in the different industries, and we look forward to continuation of our joint work.

Andy Rhodes, chief executive of division of commercial IoT-solutions of Dell company
»

«
IoT-experts of Deloitte Digital help the organizations to build business strategy on the basis of values and to implement systems which use IoT capacities. Cooperating with VMware, we can propose to clients the complete solution on management and infrastructure which will allow them to improve performance and to get competitive advantage.

Andy Daecher, the head of Deloitte Consulting LLP and the chief executive officer on IoT of Deloitte Digital company
»

«
IoT- the platform PTC ThingWorx allows clients to develop and implement the powerful corporate IoT-applications and solutions capable to transform business. Therefore for PTC it is quite natural to cooperate with one of leaders in the field of corporate technologies. The combination of our technology to technologies of VMware will give to our clients the chance to bring quickly to the IoT-solutions market of a corporate class.

Rob Gremley, president of group of a technology platform of PTC company
»

Creation of a position of the main thing on Open Source

At the end of June, 2016 in VMware the main thing position according to the open source software (Open Source) for the first time appeared. It was occupied by the person with extensive work experience in this market — Dirk Hondel. Read more here.

Entry into structure of Dell Technologies

As a result of a corporation merger of Dell and EMC the VMware company was a part of Dell Technologies group.

2015

The reasons of fall of stocks for 20% after merger of EMC by Dell company

By December 10, 2015 stocks of VMware fell in price almost for one fifth from the moment of the declaration of sale of EMC (owns a 80 percent share of VMware) Dell corporations in October. On i.e. several reasons.

First, the weak quarter reporting affected. In July-September, 2015 the volume of client orders (this indicator is watched closely by investors) the American producer of means of virtualization grew by 3% year on year whereas on Wall Street predicted three times higher rate. Against the background of the publication not enough high financial results at once 10 analysts downgraded stocks of VMware, notes Bloomberg agency.

Stocks of VMware fall because of weak financial statements and unprofitable conditions of merge of EMC and Dell for investors

According to the expert of FBR Capital Markets Daniel Ives, the fact that quarter client orders of VMware appeared below market expectations partly reflects the indefinite future of the company in connection with transition of control over it to Dell.

Merge of Dell and EMC it was announced on October 12, 2015. Under the terms of the signed agreement, Dell will pay shareholders of EMC $24.05 for each stock owned by them the cash and also traced stocks of VMware. Such payment method was not pleasant to investors.

The matter is that the traced actions which help Dell to finance acquisition do not grant to their holders a voting right in the company and legitimate rights for a part of a common property. Besides, shareholders of EMC should pay taxes in the amount of 20-40% of the cash received by Dell and costs of the traced stocks. According to media, tax burden can be about $9 billion is the second factor affecting the quotations of VMware.

According to Bloomberg to win back investors to itself and to increase share value, the management of VMware considers the possibility of share repurchase of securities for several billion dollars and failure from inclusion in the reporting of VMware of financial performance of Virtustream company based on which VMware and EMC create joint cloud business. Sources of news agency add that Dell and EMC also want to recover investor confidence to VMware, however do not intend to change terms of transaction on merge (for example, due to increase in a share of payment in money).[4]

Hybrid cloud strategy of VMware

On August 31, 2015 the top manager of VMware told that the company sees the future of the IT industry in hybrid clouds which, according to vendor, should be started through program architecture.

During the presentation at the conference of VMworld 2015 (San Francisco, on August 30 – on September 3) the chief operating officer and the president of VMware Karl Eshenbakh stated the cloud strategy of the company assuming a possibility of start of any software on any device within infrastructure model.

The strategy of work of VMware in the market of hybrid clouds assumes aspiration of the company to start of any application on any device
"All of us know that the application is useless without device allowing to get access to this program at any time and any place" — the ZDNet edition quotes Eshenbakh.

According to the head of VMware, IT departments have several options of implementation of universal approach to the software among which — creation of hybrid cloud environments based on the or third-party hyper convergent infrastructures which at the same time as Karl Eshenbakh noted, should be scalable and reliable in terms of support of legacy and proprietary cloud applicaions.

"We should be sure that everything is in security — from data center to the application" — the president of VMware told.

Start of mobile application in  a public cloud requires communication with  the data placed, as a rule, in  private clouds. The head of division of hybrid cloud services of VMware Bill Fathers, considers it one of  the most difficult and financially expensive problems for the companies implementing new cloud models.

According to the top manager, tangled cloud infrastructures lead to delays in work of systems (online sales of air tickets, paid TV broadcasts of sporting events, etc.) that in turn negatively affects revenues of the organization. Are protected from such troubles of the solution of VMware as the company naturally expands  a network architecture of local DPCs and  private clouds of the enterprises in a public cloud, Bill Fazers said.[5]

Payment of a penalty for overestimate of the prices for government contracts

On July 21, 2015 VMware officially announced payment of a penalty that the company overstated the prices in contracts with the American authorities. The paid penalty not strongly affected financial results of the software maker in the field of virtualization.

At the end of June, 2015 the prosecutor the prosecutor of the USA on east district of the State of Virginia Dana Boente recognized VMware and its partner reseller by Carahsoft Technology Group guilty that they, providing to Management of service of the USA (General Services Administration, GSA) inexact data on pricing, overstated thereby the cost of products and services in government contracts. It turned out that VMware offered state bodies only a 12 percent discount for the main products while some corporate clients received discount in the amount of 72%.

The paid penalty in $75.5 million not strongly affected financial results of VMware

The software maker managed to deceive the government during the period from 2007 to 2013, and among injured clients of the company there was an U.S. Department of Defense.

Dane Smith who was dismissed from VMware in 2010 for its intentions to tell about an incident to the management told the former employee of the company about dishonest work of VMware with the customers.

According to the statement made by VMware on July 21, 2015 within the publication of the financial statement for the second quarter, the company paid a penalty cash in the amount of $75.5 million for settlement of the claim from GSA and the U.S. Department of Justice. This amount was considered in financial results for the period April-June, 2015 according to the results of which the company received revenue in $1.52 billion (+4% year on year) and net profit in $172 million (+5%).[6]

It is known that some part from $75.5 million paid to VMware was received by Dan Smith. The amount of the money which is due to it is not specified.

It should be noted that in VMware to the last denied the fault, saying that the data provided to GSA always were reliable. However the company preferred to settle the conflict instead of being at a long lawsuit with one of the main clients — the federal government.

Start of sales of cloud services of Google

On January 29, 2015 VMware announced intention to offer the clients cloud services of Google. This step is a part of the strategy selected by software maker directed to expansion of business in the field of hybrid clouds.[7]

Within the announced partnership corporate users of a hybrid cloud platform of VMware vCloud Air will be able to get paid access (without change of license agreements) to the following products of Google: BigQuery, Cloud Storage, Datastore and  DNS. This integration will be adjusted in the middle of 2015. The price of services is not set yet.

The CEO of VMware Pat Gelsinger called cooperation with Google mutually advantageous as in it as the top manager noted, large players of the cloud and "local" markets participate.

"What they have and at us, perfectly supplement each other. And having connected all this by vCloud service, services by means of which our clients will be able to increase considerably workloads in a cloud will turn out" — Gelsinger noted.

He also added that in case of success of joint work with Google its volume will be increased. In particular, it is going to make the Google Cloud platform a part of the solution VMware Cloud Management Suite. Such tandem will be able to make the serious competition to products of Amazon and Microsoft.

As Mathew Lodge told the Bloomberg agency, the vice president for cloud services of VMware, Google will become the first company whose cloud services will be extended by VMware. Cooperation with VMware means access to the large customer base of the partner for the owner of the world's largest search system thanks to what the company will be able to sell the public cloud services to users who prefer to work with the traditional software installed on the PC, Chris Rimer, the representative of Google who is responsible for partnership agreements on cloud products of the company noted.[8]

According to Lodge, clients of VMware need clouds which are offered by Google. For example, the developers applying in work of software of virtualization can use public cloud services of Google for placement of mobile versions of the programs there or use analytical tools of Google for studying of data which are output by their software, the representative of VMware told.

2014: Separation of EMC and VMware: it is necessary, consider many

As it became known in July, 2014, one of the largest investors of EMC pushes vendor to separate VMware in the independent company. Many VAR'Y support this step which would help VMware to become the key supplier of a cloud technology, without being influenced by influence of EMC. (According to CRN/USA)

The Wall Street Journal reported on July 20, 2014 that the Elliott Management investment firm from New York purchased a share in EMC more than 1 bln. dollars, having become the fifth largest investor of the company. Now she tries to convince EMC to separate VMware as developer of a cloud technology and virtualization. (EMC purchased VMware at the beginning of 2004.)

Elliott Management intends to state that "EMC Federation" (the including EMC, VMware, software developer for "Big Data" and a business intelligence of Pivotal and the developer of IT security of RSA) hampers growth of stock of EMC. Solutions in storage of EMC Information Infrastructure make the most most part of business of the company whereas VMware and Pivotal grow much quicker.

Moreover, Elliott wants that EMC looked for for itself strategic buyers, told a source of Bloomberg. According to its data, Elliott conducted negotiations with potential buyers of EMC without VMware within several months and will meet the management of EMC next week.

Representatives of EMC and Elliott Management did not respond to information request; the representative of VMware answered CRN that the company does not comment on rumors and conjectures.

Investors, it seems, like the idea of separation of EMC. The stocks EMC rose almost by 5% in the middle of biddings on Monday to a mark higher than 28 dollars for an action. Stocks of VMware (bargain at the exchange though 80% of a share belong to EMC), however, dropped almost by 2% to a mark slightly higher than 93 dollars for an action in the same hours.

EMC observes sales growth deceleration, the company did not manage to revive growth as corporate customers and a public sector constrain purchases of powerful DWH, preferring cheaper systems based on software and a flash memory. Now EMC is going to submit the new financial statement according to the results of work in the second quarter 2014. In the first quarter total income of the company grew by 1.7% and was 5.48 billion dollars However, with marginality of business there are problems: net profit for the reporting period fell from last year's 580 million dollars to 392 million dollars in the first quarter 2014.

Key events of 2014 and strategic announcements:

  • The number of customers of AirWatch by VMware reached a point in 15,000 worldwide recently, having almost twice exceeded this indicator at the closest competitor. The solution AirWatch Enterprise Mobility Management was called leading in key analytical reports this year.
  • Continuing high rates of development, VMware already has more than 400 customers of the solution VMware NSX, the platform of network virtualization for software-defined data processing centers.
  • Along with opening of data processing centers in North America, Europe and Asia VMware announces further promotion to Australia. Besides, on January 20 VMware announced availability of updates to VMware vCloud Air which include possibilities of disaster recovery and management of networks and also availability of vCloud Air Virtual Private Cloud OnDemand service.
  • In the 4th quarter 2014 of VMware announced appearance of three additional qualified partners of an ecosystem of EVO: RAIL: NetApp, HP and Hitachi Data Systems, having increased the number of partners of EVO: RAIL to nine.
  • VMware announced the beginning of sales of a new solution of vRealize Cloud Management, including important updating of vRealize™ Suite 6, cloud platform for management of a hybrid cloud. These solutions simplify and automate management process of IT, helping customers to use IT as service.

2012: Pat Gelsinger replaces Paul Moritz as the CEO

On July 16, 2012 it became known that Paul Maritz, the chief executive officer of VMware, delegated the powers Pat Gelsinger, to the president and the chief operating officer of EMC which purchased VMware in 2004[9].

Paul Maritz worked in VMware 4 years. Having joined the company in 2008 he helped it to reach new boundaries. The reasons of leaving of Moritz are not reported. However it is worth mentioning what last week was announced new appointments also in its parent company EMC. According to the official statement, these changes are intended to prepare corporation for "a new stage of growth". These changes include increases in several top managers of EMC specializing in sales and work with clients.

Change of the head of VMware can be caused by similar plans, CRN notes. The GigaOM website reported that the company is going to select some of the assets, including the solution Cloud Foundry, in separate business. As reported, it will help it to compete more effectively with Google, Microsoft and Amazon in the market of cloud services.

According to GigaOM, the new company will be headed by Tod Nielsen, the top manager of VMware, and Mark Lucovsky who is responsible for the Cloud Foundry project.

2011: Start of IaaS Cloud Foundry

In 2011 the VMware company started own cloud service of IaaS Cloud Foundry in which almost at once there was a serious failure.[10] service it was announced on April 12, and it is stopped - as a result of "failures in work of service" on April 25 and 26.

2010: A rate on a hybrid cloud

In 2010 the vendor announces release of VMware View 4.5 which becomes corporate solution for virtualization of desktops. In Moscow the company holds the first Forum, the first training centers open. Next year VMware presented a complex of solutions for management of cloud infrastructure. Besides, the circle of distributors extended - their number included MONT and Merlion.

In 2010 the company so formulated the strategy. There are no companies which use only private or only the general clouds — are used elements of this or that. As a result of mixing the hybrid cloud which performs all necessary functions turns out. It works according to the developed politicians. VMware maintains the best lines of all types of clouds.

On VMworld 2010 three main directions in which the company is engaged now were announced:

  • cloud infrastructure and management of it;
  • application development under cloud infrastructures;
  • calculations for end users.

Gradually the companies virtualize all the servers, applications and will pass to absolute virtualization, to an internal cloud when it is possible to work on the IT as Service model.

2009: The release of a hit is VMware vSphere 4

In 2009 the release of the first cloud system of virtualization of VMware vSphere 4 took place. In Russia the command increased to 17 people, the first large projects on implementation of the systems of virtualization in banks appeared, and despite crisis the company increased the business.

2008: The co-founder of the company Diana Green leaves. Paul Maritz new CEO

On July 8, 2008 the Board of Directors of VMware announced leaving of Diane Greene, one of founders of this company, in resignation from posts of the president and the CEO. And Paul Maritz directing at that time EMC Cloud Division was appointed to its place. Before work in EMC, Paul Maritz was a part of top managers of Microsoft where he worked 14 years and managed creation and marketing of such products as Windows 95, Windows NT, SQL Server. In the 2003rd it based Pi startup company, and at the beginning of 2008 it was purchased by EMC. The stock market reacted to Diane Greene resignation with fall of stocks: VMware for an hour lost 23.3%, and EMC — 8.5%.

2007: The IPO on NYSE, opening of office in Russia

In 2007 the company came for the IPO at the New York Stock Exchange, and same year opened office in Russia. In a year its state made 7 people, there was the Russia's first distributor – OCS company and about 60 partners in Russia and the CIS.

2006: 99 companies from the list of Fortune 100 become clients of VMware

By 2006 99 companies from the list of Fortune 100 become clients of VMware, and for 2013 995 companies from the list of Fortune 1000 are her customers. By estimates of vendor, from 400 leading companies of Russia 90-95% use products of VMware.

2003: EMC purchases VMware for $625 million

In 2003 the EMS corporation announces acquisition for 625 mln. dollars of assets of VMware which becomes EMS subsidiary company, but continues to work independently, with own divisions of Research and Development, sales and marketing.

2002: More than 1 million users

In 2002 products of VMware use more than 1 million registered users, and the amount of orders exceeds 40 mln. dollars.

1999: The amount of orders exceeded $1 million

In 1999 the amount of orders for products of VMware exceeded 1 mln. dollars, and the company was forced to employ the first sales specialist.

1998: Startup

The VMware company is a typical startup of 1998. It was created by a team of five founders, but the leading role in this five belonged to married couple — to Mendel Rosenblum and Diana Green. The husband played a role of the scientific and technical leader of the company: at that moment he was professor of the Stanford university where was engaged in developments in the field of operating systems which formed the basis of technologies of virtualization of VMware (later he is the chief research supervisor of VMware).

VMware: Facts of early history

Affiliate program

Основная статья: VMware Partner Network

Notes


Stock price dynamics

Ticker company on the exchange: NYSE:VMW