VMware

Performance indicators

White Paper: VMware Financials

2020: Revenue growth 9%, to $11.77 billion

In fiscal 2021, VMware raised $11.77 billion, 9% higher than a year ago. Sales of subscriptions, SaaS solutions (software as a service) and licenses for software products installed on client computers increased by 11% to $5.6 billion.

Even more - by 38% - revenues from the sale of subscriptions on the site and SaaS solutions increased, in 2021 this business brought the American company about $2.59 billion. These indicators are closely watched by investors and analysts, as it indicates the degree of success of the company in the transition to a new business model, SiliconANGLE notes.

We are very pleased with our subscriptions and SaaS portfolio, "says Chief Financial Officer and Interim Head of VMware Zane Rowe. - A high rate of contract renewal continues, and we have seen a significant increase in corporate expenses on transactions worth more than $10 million.

VMware revenue up 9% in 2020 thanks to subscriptions and SaaS

Service revenue on an annualized basis increased from $5.75 billion to $6.15 billion, taking more than half of VMware's annual turnover.

In fiscal 2021, VMware's revenue in the United States amounted to $5.88 billion, an increase from the previous year's result of $5.41 billion. In the rest of the countries combined, the company increased sales from $5.41 billion to $5.89 billion. The ratio of American and foreign revenues of VMware remained at around 50% by 50%.

According to the results of the 12-month reporting period, closed at the end of January 2021 calendar year, VMware recorded a net profit of $2.06 billion, while a year earlier such profit was measured by $6.41 billion.

From VMware's reporting, it also follows that by the end of the 2021 fiscal year, the company has 33,972 employees on staff and $4.69 billion in cash and cash equivalents.^[1]

Business in Russia

Шаблон:Main 'VMware Russia

Buying and selling companies

• Acquisitions and divestment of VMware assets

History

2023: Mass layoffs after $61 billion company sale

In early December 2023, it became known that Broadcom Corporation, after completing the purchase of VMware, initiated a large-scale program to reorganize this virtualization software developer. As part of this initiative, thousands of employees will be laid off.

Broadcom announced the final takeover of VMware on November 22, 2023: the total amount of the transaction amounted to $61 billion ($69 billion, including debt). After that, Broadcom sent a notice to the California Department of Employment Development about the upcoming reduction in headcount: 1,267 employees at VMware headquarters in Palo Alto will lose their jobs. At the same time, the headquarters itself will continue to function.

Broadcom, after completing the purchase of VMware, initiated a large-scale program to reorganize this software developer

In addition, the restructuring will affect other VMware divisions in various regions. In total, Broadcom plans to lay off approximately 2,840 people. By the end of November 2023, the number of VMware employees was about 38.3 thousand people around the world. Thus, approximately 7.4% of the company's specialists will fall under the reduction. Layoffs in Palo Alto will begin on January 26, 2024: reduced employees will receive monetary compensation and other due payments.

In addition, the reorganization of the VMware business provides for the formation of four divisions. Это Application Networking and Security (ANS), Software-Defined Edge (SDE), Tanzu (TNZ) и VMware Cloud Foundation (VCF). This structure is expected to help strengthen the position in the corporate software market and improve financial performance. Broadcom plans to invest in the further development of VMware. At the same time, annually up to half of the allocated money will go to research and development. The company's goal is to help customers optimize their private, hybrid and multi-cloud environments.^[2]

2021

Complete VMware Asset Transfer to a Separate Company from Dell

On November 1, 2021, VMware officially separated from Dell. As part of the reorganization, the 81% share of the virtualization systems developer, which belonged to Dell, transferred to an independent company with a market capitalization of $64 billion. Dell's remaining assets (mainly related to equipment) have a value of about $33 billion, writes the Financial Times (FT), citing stock exchange data.

Investment company Silver Lake, which helped organize this deal, retained stakes in Dell and VMware worth about $11 billion. To attract more investors, Dell is preparing to start paying dividends and will abandon the multi-class stock structure.

Dell separates VMware from itself and earns $10 billion

The FT notes that after the purchase of EMC, Dell was saddled with debts of about $70 billion. As part of the separation from Dell, VMware will pay shareholders a special dividend of about $12 billion and thereby ease Dell's debt burden. By the end of July 2021, the net debt of the computer and server manufacturer was measured at $32 billion.

After the separation, Dell will become a simpler company with a better capital structure, "said Cowen analyst Krish Sankar.

According to VMware President Sumit Dhawan, the separation from Dell will help the company not pay attention to corporate business data centers and focus its investments and M&A work on cloud computing.^[3]

Sentinel Technologies CTO (a major partner of Dell and VMware) Bob Keblusek expressed the opinion that the restructuring will open new doors for VMware, which will become an independent company for the first time since 2004. It will receive opportunities for wider dissemination of its technologies and the development of a strategy for integrating its products with the solutions of other vendors, the expert believes.

I see no reason why VMware would need (just because they were spun off) to reduce integration with Dell EMC, but this deal will also provide opportunities for them to work more closely with other vendors, "Keblusek added.

Ragu Ragurama is the new CEO of VMware

On May 12, 2021, VMware announced the appointment of Ragu Raguram as the company's new CEO to replace Pat Gelsinger, who had moved to Intel three months earlier. Read more here.

Spin-off VMware into a new company

April 14, 2021 Dell Technologies announced the separation of VMware into a new company. Thanks to such a restructuring, the IT corporation founded Michael Dell will be able to earn $9.3-9.7 billion thanks to the payment of special dividends to VMware shareholders. By April 14, Dell owns an 81 percent stake in an American tool developer for. virtualizations

With VMware, we hope to gain additional growth opportunities for Dell Technologies as well as significant value for stakeholders, says Michael Dell. - Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we offer solutions to customers.

Dell intends to spend the funds received after the VMware branch transaction to pay off debts, which by the end of January 2021 amounted to about $34 billion.

Dell separates VMware from itself and plans to make $10 billion from it

What will be called the new company, which will receive 81% of VMware shares, is not specified by April 15, 2021. Dell only said that these companies will maintain a "mutually beneficial strategic relationship and continue to jointly develop solutions for customers."

According to Dell Chief Financial Officer Tom Sweet, VMware's spin-off into the new company will simplify the capital structure of both VMware and Dell, as well as provide "additional strategic and financial flexibility." Before the announcement of the deal, Dell's VMware ownership structure was very complex, and Michael Dell said that it was necessary so that very different companies could sell their products and services to common customers. However, the market "did not appreciate the combination of equipment and software," he stated.

The VMware separation statement contributed to Dell's 9 percent increase in quotations on April 14, 2021.^[4]

2020

Pay reduction for employees transitioning to permanent remote work

In mid-September 2020, it became known that VMware employees who will accept the company's offer to become permanent remote employees will receive wage cuts if they move from Silicon Valley, one of the most expensive areas in the United States, to a less expensive city.

The enterprise software maker has joined technology companies such as Facebook and Twitter in allowing some employees to constantly work from home following the COVID-19 coronavirus pandemic. However, according to sources who are familiar with the innovations in VMware, employees who worked at VMware headquarters in Palo Alto (California) and leave, for example, in Denver, must agree to an 18% pay cut. The sources noted that moving from Silicon Valley to Los Angeles or San Diego means giving up 8% of their annual salary.

VMware and Twitter cut salaries for employees who switch to permanent remote work

VMware's senior vice president of human resources Rich Lang said the company adjusts wages based on "labor costs" in various regional zones and compares wage differences between companies competing for its employees. While some employees will face pay cuts, others could get a raise if they decide to move to a larger or more expensive city.

Facebook and Twitter are among other tech companies that have introduced or are considering similar pay rules. A Twitter spokesperson said the company was taking a "competitive" approach to distributing compensation, while Facebook publicly said it could cut employee salaries depending on where they choose to move.^[5]

Transfer of up to 60% of employees to remote locations

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

According to him, before the crisis caused by the outbreak of the coronavirus COVID-19, about 20% of employees worked from home in VMware. During the pandemic, most workers were transferred to the remote.

VMware will permanently leave 60% of employees remotely

According to my expectations, continuing to work in this direction [using remote labor - approx. TAdviser], we will eventually reach an indicator of 50-60% [the share of employees working remotely]. It doesn't seem to be quite common... We double, triple the amount of remote work, - said the head of VMware.

Gelsinger stressed that current events in the world inspire confidence that technologies - software and cloud technologies, in particular - will pass the crisis period more easily than other areas of the economy.

Sometimes it takes ten years to ensure a week of progress. Sometimes a week gives you a decade of progress, "Gelsinger explained ." Suddenly, education, health care and remote work are taking huge steps forward.

As of January 31, 2020, VMware's headcount was measured at about 31,000 employees working in 169 offices worldwide. Many small satellite offices may be closed, but not the Silicon Valley headquarters, which is among the company's priority plans for future years, Gelsinger said.

This will be a transition from hotel offices to a collaboration center. I believe that our presence here will mostly remain the same, but we are going to significantly change its character. It is here that we intend to unite to innovate, build a community, restore culture and connections between people, "Gelsinger said.[6]

$236 million fine for stealing technology for the IT process management system

At the end of January 2020, the court issued a ruling according to which VMware will have to pay $236 million to Densify (develops cloud optimization software) for stealing technology for the vRealize IT process management system.

The court concluded that VMware used other people's developments, violating patent rights, and created conditions for unfair competition that damaged Densify. The patent infringement case concerns new versions of VMware software. Densify claims that VMware vRealize Operations (vROps) 7.0, vRealize Operations 7.5 and Predictive DRS violate two Densify patents to optimize the use of computing processes in the cloud and local data centers. Densify vROps algorithms versions 7.0 and 7.5 are too similar to the proprietary Densify software for predictive analytics, and Predictive DRS is similar to the basic Densify function, which provides predictable resource usage schemes.

The court issued a ruling according to which VMware will have to pay $236 million to Densify (develops cloud optimization software) for stealing technology for the vRealize IT process management system

Densify argues that VMware violated not only the right to intellectual property, but also the right to a trademark because it created confusion in consumers' minds that damages Densify's business. VMware not only copied someone else's technology, but also used the name "Densify" in relation to VMware products.

VMware uses our company's trademark to increase the commercial value of its products and services, citing Densify's award-winning optimization products, Densify said in its complaint.

Densify has been active with VMware in technology integrations in the past, but the companies have become competitors in recent years. Before, Densify never went to court over patent issues. A VMware spokesman told CRN that the company intends to continue the fight, hoping to prove its innocence.^[7]

Purchase of an AI system developer for analyzing the operation of Nyansa networks

On January 21, 2020, VMware announced the acquisition of Nyansa, but the value of the company's deal was not disclosed. Read more here.

2019

Revenue growth to $10.81 billion

VMware revenue at the end of the 2020 fiscal year, closed on January 31, 2020 calendar, VMware revenue for the first time exceeded $10 billion and reached $10.81 billion.

In 2020, VMware received $3.18 billion from sales of software licenses against $3.04 billion a year earlier. Service revenues reached $5.75 billion, which significantly exceeds the one-year-old figure of $5.27 billion. Software support services brought the American vendor about $4.75 billion in turnover, in fiscal 2019, revenues were measured at $4.35 billion. Income from the provision of professional services increased from $917 million to $999 million.

VMware revenue for the first time exceeded $10 billion and reached $10.81 billion

Annual revenue from sales of subscriptions to SaaS solutions amounted to $1.88 billion, which is 44% higher than the result of a year ago. This business accounted for more than 17% of total revenue. This includes VMware Cloud Provider,, VMware Cloud on AWS, Pivotal EUC/Workspace One,,,, and Carbon Black CloudHealth Technologies. VeloCloud Horizon Cloud Wavefront AppDefense

VMware's net profit in fiscal 2020 was $6.41 billion, an increase of almost 4 times compared to the previous year.

ON VMware reported a record 31 sales contracts to corporate customers, up from 23 a year earlier. The financial report also refers to a "significant increase" in subscription costs and SaaS offers in the top ten deals. This is more than double the level of a year ago.

By the close of the New York Stock Exchange on the day of publication of the financial statements, VMware quotes amounted to $135.63, which is 6% less than the day before. At electronic trading, securities fell another 6.6% to $126.66. The stock price declined as the virtualization maker's earnings fell short of Wall Street expectations.^[8]

The average salary is $158 thousand.

2018: Billionaire Carl Icahn buys VMware shares

In April 2018, Carl Icahn bought a stake in VMware, which may indicate an upcoming restructuring in the company. Read more here.

2017

"I'm not working for Michael Dell." VMware CEO on the independence of the company after the merger of Dell and EMC

The CEO of VMware Pat Gelsinger (Pat Gelsinger) convinces that there is no controlling influence on the company's business from the side to Dell which VMware switched after the acquisition of EMC in September 2016. A year after that deal was completed, Gelsinger told TAdviser that independence is one of the top three characteristics of the VMware-Dell relationship. He noted that VMware continues to operate as a separate company with its own board of directors.

I'm not working for Michael Dell, I'm working for the board, "he said when asked by TAdviser. - VMware was managed by and continues to be managed by the board.We continue to be an independent company with our own way of operating the market.

According to Pat Gelsinger, VMware's relationship with Dell can be characterized in three words: independence, ecosystem, strengthening

In other two words, characterizing the relationship with Dell, the CEO of VMware calls "strengthening" and "ecosystem." VMware expects to achieve an enhanced effect on its business by selling and investing in Dell's products.

Regarding the ecosystem, Gelsinger noted that Dell does not hinder the development of the vast VMware ecosystem, including expanding partnerships with companies that are competitors for Dell itself.

We are talking about companies like IBM, HP, Lenovo. In August 2017, for example, VMware expanded its partnership with HP by combining its software with HP's device as a service.

In 2016, VMware announced a strategic partnership with IBM, and in September 2017, at VMworld Europe and Dell itself, EMC announced that it would offer its customers VMware software in the IBM Cloud platform.

Previously, VMware admitted that Dell could negatively affect the development of relations with partners who are competitors for the latter, including IBM and HP. This is mentioned in the risk list for the company in VMware's 2016 annual report.

Now Pat Gelsinger notes the synergistic effect of the relationship with Dell and believes that the latter itself benefits from the VMware ecosystem, citing the relationship with IBM as an example.

Through VMware and our partnership with IBM, Dell has now announced a partnership with IBM. This is largely the result of the work and innovation that we did together with IBM. Now this has turned into a benefit for Dell, - said the CEO of VMware to TAdviser.

He added that in general, VMware is very pleased with how the relationship with Dell is developing. The company announces major partnerships with other companies such as Lenovo, HP, Amazon, but also works more closely with Dell itself.

VMware enters the IoT market

In the first half of 2017 VMware , it plans to release its first solutions for the industry (internet of things Internet of Things,). IoT Mimi Speer TAdviser (Mimi Spier), vice president of marketing, business development and IoT strategy for VMware, spoke about this in February.

Before the official announcement, the company prefers not to disclose which products it will bring to the market. However, from the words of Mimi Speer it follows that these will be infrastructure-level solutions. The Internet of Things requires a new type of infrastructure, including sensors, networks and other components. It needs to be deployed, managed and secure, she notes. VMware is working on solutions that would allow customers to do this in the simplest possible way.

VMware IoT products will use existing virtualization technologies, which historically make up the main competence of the company. However, the scope of development is much wider and includes many other things, says Mimi Speer. According to her, the company is investing in creating completely new capabilities designed specifically for IoT.

VMware plans to significantly increase the staff of the IoT division in the near future

New products are focused primarily on use in the automotive/transport industry, retail, power, when creating "smart" buildings, in the public sector and healthcare. At the same time, the company plans to create both universal solutions that could be used in different industries, as well as joint solutions with partners that take into account industry specifics.

VMware began looking at the Internet of Things as a new business area for itself about three years ago, Speier told TAdviser. About a year ago, the company decided that it was the right time to enter the IoT market, and determined for itself the strategy for the development of this business.

For the new direction, the company has formed a special division, the number of which at the beginning of 2017 is about 40 people. Mimi Speer says that in the future, the staff of this unit can be several hundred people. In addition to the employees of the IoT division itself, a much larger number of specialists from other divisions are involved in the development of this business.

Speer notes that VMware is open and able to expand the IoT direction by acquiring other development companies in this area.

To develop a new business, VMware is interested in partners related to this area. The main interest for it is companies related to hardware solutions, system integration, IoT platform developers, data analytics and application creation. In 2016, VMware formed alliances with Bayshore Networks, Dell EMC, Intwine Connect, Deloitte Digital, PTC and V5 Systems.

In 2017, the company also established a partnership with a small company, VizExplore, a developer of analytical solutions, with which VMware plans to jointly create healthcare solutions. Potentially, it can be collaborated with in other areas, including IoT, says Speer.

The new partner is Harman, which has special products for the Internet of Things, including hardware and analytical solutions, Mimi Speer told TAdviser. One area of ​ ​ partnership is the provision of 5G services for cars, using VMware technologies to virtualize network services.

The VMware representative noted that the first step in the direction of IoT for the company was the release in 2016 of the Liota product, an open source software development kit (SDK), with which you can create secure applications for managing and controlling IoT data.

We love open source. As a company, we are moving closer to open source software and embracing the developer community. We already have partners in this area that we have not yet announced, "said Mimi Speer in a conversation with TAdviser.

Speer noted in a conversation with TAdviser that the segment in which VMware will present products turned out to be less competitive than the company originally thought. This is not an area that many want to focus on, since technologically it is quite complex, says a VMware representative.

2016

Cooperation with partners in the development of the Internet of Things

On September 5, 2016, VMware announced a strategic partnership in]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]]] with [[Internet of Things: you can't stay in time|Internet of Things (IoT) Bayshore Networks, Dell Intwine Connect, Deloitte Digital, PTC and V5 Systems.

Partner plans involve helping to close the gap between the world of IT and operational technology.

Internet of Things, (2016)

Companies strive to integrate Internet of Things into their business and solutions for customers, but to achieve the maturity of this technology, the required level and scale, it needs to change. As of August 2016, projects in the field Internet of Things are carried out mainly by the operating divisions of enterprises, but moving from pilot projects to enterprise-level implementations, IT participation is necessary for effective management and security. VMware plans to help solve this problem and enable IT to provide the business with the necessary infrastructure to maintain its continuity. VMware will also help OT teams streamline management and operations with IoT to scale these elements across Internet of Things the company's entire infrastructure.

А что цитируем-то?

Together, Dell and VMware provide their mutual customers and partners with the choice and flexibility to implement IoT technologies. VMware helps us pave the way for IoT innovation across industries, and we look forward to continuing our collaboration. Andy Rhodes, Executive Director, Dell Commercial IoT Solutions

Deloitte Digital's IoT practices help organizations build value-based business strategies and implement systems that harness IoT's power. Working with VMware, we can offer customers a comprehensive management solution and infrastructure that enables them to improve performance and gain a competitive advantage. Andy Daecher, Deloitte Consulting LLP Executive and IoT Chief Executive Officer, Deloitte Digital

The PTC ThingWorx IoT platform enables customers to develop and implement powerful enterprise IoT applications and solutions that can transform their business. Therefore, it is only natural for PTC to partner with one of the leaders in enterprise technology. Combining our technology with VMware technologies will enable our customers to quickly bring enterprise-class IoT solutions to market. Rob Gremley, president of PTC the company's technology platform group

Creating a Chief Position for Open Source

At the end of June 2016, VMware first became Chief Open Source Software Officer. It was occupied by a person with extensive experience in this market - Dirk Hondel. Read more here.

Joining Dell Technologies

As a result of the merger of Dell and EMC, VMware became part of the Dell Technologies group of companies.

2015

Reasons for the 20% drop in shares following Dell's takeover of EMC

By December 10, 2015, VMware shares had fallen in value by nearly a fifth since announcing the sale of EMC (owns an 80 percent stake in VMware) to Dell in October. There are several reasons.

First, weak quarterly reporting affected. In July-September 2015, the volume of customer orders (this indicator is closely watched by investors) of the American manufacturer of virtualization tools grew by 3% on an annualized basis, while Wall Street predicted a three-fold higher figure. Against the background of the publication of insufficiently high financial results, 10 analysts at once lowered the rating of VMware shares, the Bloomberg agency notes.

VMware Shares Fall Due to Weak Financial Statements and Investor-Disadvantage Terms of EMC-Dell Merger

According to FBR Capital Markets expert Daniel Ives, the fact that VMware's quarterly customer orders were below market expectations partly reflects the company's uncertain future due to the transfer of control over it to Dell.

The merger of Dell and EMC was announced on October 12, 2015. Under the terms of the agreement, Dell will pay EMC shareholders $24.05 for each share they own in cash as well as tracked VMware shares. This form of payment did not appeal to investors.

The fact is that tracked shares that help Dell finance the acquisition do not give their holders voting rights in the company and legal rights to part of the common property. In addition, EMC shareholders will have to pay taxes in the amount of 20-40% of the cash received by Dell and the value of the tracked shares. According to media reports, the tax burden could be about $9 billion - this is the second factor reflected in VMware quotes.

According to Bloomberg, in order to regain investor affinity and increase stock value, VMware management is considering buying back several billion dollars in securities and refusing to include in VMware's reporting the financial performance of Virtustream, on the basis of which VMware and EMC are creating a joint cloud business. Sources of the news agency add that Dell and EMC also want to restore investor confidence in VMware, but do not intend to change the terms of the merger transaction (for example, by increasing the share of payment in cash^[9]

VMware Hybrid Cloud Strategy

On August 31, 2015, a top manager VMware said that the company sees the future of the IT industry in hybrid clouds, which, according to the vendor, should be launched through software architectures.

During a speech at VMworld 2015 (San Francisco, August 30 - September 3), VMware Chief Operating Officer and President Karl Eschenbach outlined the company's cloud strategy, which involves the ability to run any software on any device as part of an infrastructure model.

VMware's strategy for the hybrid cloud market involves the company's commitment to running any application on any device

"We all know that the application is useless without a device that allows you to access this program anytime and anywhere," ZDNet quoted Eschenbach as saying.

According to the head of VMware, IT departments have several options for implementing a universal approach to software, including the creation of hybrid cloud environments based on their own or third-party hyperconverged infrastructures, which, as Karl Eschenbach noted, should be scalable and reliable in terms of supporting legacy and proprietary cloud applications.

"We need to be confident that everything is safe - from the data center to the application," said the president of VMware.

Running a mobile application in a public cloud requires communication with data hosted, usually in private clouds. Bill Fathers, head of VMware's hybrid cloud services, considers this one of the most difficult and financially costly problems for companies implementing new cloud models.

According to the top manager, confusing cloud infrastructures lead to delays in the operation of systems (online sales of air tickets, paid television broadcasts of sports events, etc.), which in turn negatively affects the organization's income. VMware solutions are protected from such troubles, since the company naturally expands the network architecture of local data centers and private enterprise clouds into the public cloud, Bill Fazers said.^[10]

Payment of a fine for overpricing government contracts

On July 21, 2015, VMware officially announced the payment of a fine for the company overcharging in contracts with the American authorities. The penalty paid did not greatly affect the financial results of the virtualization software manufacturer.

At the end of June 2015, US Attorney for the Eastern District of Virginia Dana Boente found VMware and its reseller partner Carahsoft Technology Group guilty of providing inaccurate pricing data to the US Service Administration (GSA), thereby overestimating the cost of products and services in government contracts. It turned out that VMware offered government agencies just a 12 percent discount on its core products, while some corporate customers received a 72 percent discount.

The penalty paid of $75.5 million did not greatly affect the financial results of VMware

The software manufacturer managed to deceive the government between 2007 and 2013, and the company's affected customers included the US Department of Defense.

Former employee Dan Smith, who was fired from VMware in 2010 for his intentions to tell management about the incident, spoke about VMware's dishonest work with his customers.

According to a statement made by VMware on July 21, 2015 as part of the publication of the second quarter financial report, the company paid a cash fine of $75.5 million to settle the lawsuit by GSA and the US Department of Justice. This amount was taken into account in the financial results for the period April-June 2015, as a result of which the company received revenue of $1.52 billion (+ 4% on an annualized basis) and net profit of $172 million (+ 5^[11]

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

It is worth noting that VMware until recently denied their guilt, saying that the data provided by GSA was always reliable. However, the company chose to settle the conflict instead of pursuing a lengthy legal battle with one of its main clients, the federal government.

Start selling Google cloud services

On January 29, 2015, VMware announced its intention to offer cloud services to its customers. Google The move is part of a manufacturer's chosen ON strategy to expand the hybrid cloud business.^[12]

As part of the announced partnership, enterprise users of the VMware vCloud Air hybrid cloud platform will be able to gain paid access (without changing the license agreements) to the following Google products: BigQuery, Cloud Storage, Datastore and DNS. This integration will be established in mid-2015. The cost of services has not yet been announced.

The CEO of VMware Pat Gelsinger (Pat Gelsinger) called the cooperation with Google mutually beneficial, since, as the top manager noted, major players in the cloud and "local" markets participate in it.

What they and we have perfectly complement each other. And by linking all this with the vCloud service, we will get services with which our customers will be able to significantly increase workloads in the cloud, "said Gelsinger

He also added that if the collaboration with Google is successful, its volume will be increased. In particular, it is planned to make the Google Cloud platform part of the VMware Cloud Management Suite solution. Such a tandem will be able to seriously compete with Amazon and Microsoft products.

As Matthew Lodge, vice president of cloud services at VMware, told Bloomberg, Google will be the first company whose cloud services will distribute VMware. For the owner of the world's largest search engine, cooperation with VMware means access to a partner's large client base, so that the company can sell its public cloud services to users who prefer to work with traditional PC-based software, said Chris Rimer, Google representative responsible for partnership agreements for the company's cloud products.^[13]

VMware customers need the clouds that Google offers, Lodge said. For example, developers who use virtualization software can use Google's public cloud services to host mobile versions of their programs there or use Google's analytical tools to study the data that their software displays, a VMware spokesman said.

2014: Separation of EMC and VMware: It is needed, many believe

As it became known in July 2014, one of the largest investors in EMC is pushing the vendor to separate VMware into an independent company. Many VARs support this move, which would help VMware become a major cloud provider without EMC's influence. (According to CRN/USA)

The Wall Street Journal reported on July 20, 2014 that New York-based investment firm Elliott Management acquired a stake in EMC of more than $1 billion, becoming the company's fifth largest investor. Now it is trying to convince EMC to separate VMware as a cloud and virtualization developer. (EMC bought VMware in early 2004.)

Elliott Management intends to declare that EMC Federation (including EMC, VMware, big data software developer and Pivotal business intelligence and IT security developer RSA) is hindering EMC's stock growth. EMC Information Infrastructure storage solutions are the largest part of the company's business, while VMware and Pivotal are growing significantly faster.

Moreover, Elliott wants EMC to look for strategic buyers for itself, a source told Bloomberg. Elliott has been in talks with potential EMC buyers without VMware for months and will meet with EMC management next week, he said.

EMC and Elliott Management did not respond to a request for information; a VMware spokesperson responded to CRN that the company does not comment on rumors and speculation.

Investors seem to like the idea of ​ ​ splitting EMC. Shares of EMC climbed nearly 5% in mid-trading Monday to above $28 a share. Shares of VMware (traded on the stock exchange, although EMC owns 80% of the stake), however, fell almost 2% to just above $93 per share during the same hours.

EMC is seeing a slowdown in sales growth, and the company has failed to revive growth as corporate customers and the public sector are holding back purchases of powerful DSS, preferring cheaper systems based on software and flash memory. EMC is currently preparing to submit a new financial statement for the second quarter of 2014. In the first quarter, the company's total revenue grew by 1.7% to $5.48 billion. True, there are problems with the margin of the business: net profit for the reporting period fell from last year's $580 million to $392 million in the first quarter of 2014.

Key events of 2014 and strategic announcements:

• The number of AirWatch by VMware customers recently reached 15,000 worldwide, almost twice that of its closest competitor. AirWatch's Enterprise Mobility Management solution has been cited as leading the way in key analysis reports this year.
• Continuing at a rapid pace, VMware already has more than 400 customers of VMware NSX, a network virtualization platform for software-defined data centers.
• Along with the opening of data centers in North America, Europe and Asia, VMware is announcing further advancement to Australia. In addition, on January 20, VMware announced the availability of updates for VMware vCloud Air, which include disaster recovery and network management capabilities, as well as the availability of vCloud Air Virtual Private Cloud OnDemand.
• In Q4 2014, VMware announced the emergence of three additional qualified EVO ecosystem partners: RAIL: NetApp, HP and Hitachi Data Systems, increasing the number of EVO: RAIL partners to nine.
• VMware has announced the launch of a new vRealize Cloud Management solution, including an important update to vRealize™ Suite 6, a cloud platform for hybrid cloud management. These solutions simplify and automate IT management, helping customers use IT as a service.

2012: Pat Gelsinger succeeds Paul Moritz as CEO

On July 16, 2012, it became known that Paul Maritz, Chief Executive Officer of VMware, transferred his powers to Pat Gelsinger, President and Chief Operating Officer of EMC Corporation, which acquired VMware in 2004^[14]

Paul Maritz worked at VMware for 4 years. Having joined the company in 2008, he helped it reach new frontiers. The reasons for Moritz's departure have not been reported. However, it is worth mentioning that last week new appointments were announced at its parent company, EMC. According to the official announcement, these changes are designed to prepare the corporation for a "new stage of growth." These changes include promotions to several top EMC sales and customer managers.

The change in the head of VMware may be due to similar plans, CRN notes. The GigaOM website said the company plans to spin off some of its assets, including the Cloud Foundry solution, into a separate business. This will reportedly help it compete more effectively with Google, Microsoft and Amazon in the cloud services market.

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

2011: IaaS Cloud Foundry launch

In 2011, VMware launched its own cloud service IaaS Cloud Foundry, in which a serious failure almost immediately occurred.^[15] of the service was announced on April 12, and stopped as a result of "service failures" on April 25 and 26.

2010: Hybrid Cloud Course

In 2010, the vendor announced VMware View 4.5, which is becoming an enterprise desktop virtualization solution. In Moscow, the company holds the first Forum, the first training centers are opening. The following year, VMware introduced a suite of cloud infrastructure management solutions. In addition, the circle of distributors has expanded - they included MONT and Merlion.

In 2010, the company formulated its strategy in this way. There are no companies that use only private or shared clouds - elements of one or the other are used. As a result of mixing, a hybrid cloud is obtained, which performs all the necessary functions. It works in accordance with the developed policies. VMware supports the best features of all cloud types.

At VMworld 2010, three main areas that the company is now engaged in were announced:

• cloud infrastructure and management;
• Developing applications for cloud infrastructures
• End-user calculations.

Gradually, companies will virtualize all their servers, applications and move to one hundred percent virtualization, to the internal cloud, when it will be possible to work according to the "IT as a service" model.

2009: Hit Release - VMware vSphere 4

The first cloud virtualization system, VMware vSphere 4, was released in 2009. In Russia, the team increased to 17 people, the first major projects for the implementation of virtualization systems in banks appeared, and despite the crisis, the company was increasing its business.

2008: Co-founder Diana Green leaves. Paul Maritz new CEO

On July 8, 2008, the board of directors of VMware announced the resignation of Diana Greene, one of the founders of this company, from the posts of president and CEO. And Paul Maritz, who led the EMC Cloud Division at that time, was appointed in her place. Prior to working at EMC, Paul Maritz was part of Microsoft's top managers, where he worked for 14 years and managed the creation and marketing of products such as Windows 95, Windows NT, SQL Server. In 2003, he founded the startup company Pi, and in early 2008 it was bought by EMC. The stock market reacted to Diana Green's resignation by falling stocks: VMware lost 23.3% in an hour, and EMC lost 8.5%.

2007: NYSE IPO, opening office in Russia

In 2007, the company entered an IPO on the New York Stock Exchange, and in the same year opened an office in Russia. A year later, its staff amounted to 7 people, the first distributor in Russia appeared - OCS and about 60 partners in Russia and the CIS.

2006:99 Fortune 100 companies become VMware customers

By 2006, 99 Fortune 100 companies are becoming VMware customers, and by 2013, 995 Fortune 1000 companies are customers. According to the vendor's estimates, out of 400 leading companies in Russia, 90-95% use VMware products.

2003: EMC acquires VMware for $625 million

In 2003, EMS Corporation announced the acquisition for $625 million of VMware assets, which becomes a subsidiary of EMS, but continues to operate independently, with its own R&D, sales and marketing departments.

2002: Over 1 million users

In 2002, VMWare products use more than 1 million registered users, and the order amount exceeds $40 million.

1999: Orders exceeded $1 million

Already in 1999, orders for VMware products exceeded $1 million, and the company was forced to hire the first sales specialist.

1998: Startup

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

VMware: Facts of Early History

Partner Program

Основная статья: VMware Partner Network

Notes