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Tag: VMware

  • EU Poised to Warn Broadcom Over VMware Deal

    EU Poised to Warn Broadcom Over VMware Deal

    The European Union is poised to issue a warning to Broadcom over its proposed purchase of VMware for $61 billion.

    Broadcom announced a deal to acquire VMware for $61 billion in May 2022. The deal came as a shock to many, including many VMware employees who were not happy with the prospect of joining Broadcom.

    Regulators have expressed concerns about the deal, with the EU Commission opening an investigation in December, after UK regulators took a similar step in November.

    According to Reuters, the EU is now preparing to issue a warning to Broadcom over the proposed deal. This will give the two companies an opportunity to address concerns and offer potential remedies, although the outlet’s sources say Broadcom has no intention of preemptively offering remedies before seeing the charges in the warning.

  • Google Brings VMware to Google Cloud

    Google Brings VMware to Google Cloud

    Google is rolling out support for VMware in Google Cloud in the form of “a Google-managed VMware platform.”

    VMware is a major player in the virtualization and cloud computing markets. The company’s software powers some of the world’s biggest companies across a range of industries, and Google is bringing that software to its cloud offerings.

    The company announced the initiative in a blog post:

    Google Cloud VMware Engine is a Google-managed VMware platform that customers can use to run their VMware workloads on Google Cloud. VMware Engine private clouds consist of VMware ESXi clusters that are managed by Google. Customers manage the virtual infrastructure of private clouds using VMware vCenter and VMware NSX-T for software-defined networking. The GCVE IaC Foundations code guides customers to automate the configuration of several layers of the infrastructure and virtualization stack, using infrastructure as code. This includes the integration of platform logging and monitoring with the Google Cloud Operations Suite, configurations such as VM folders, permissions and VM deployments in vCenter and network configurations in NSX-T, including subnets, firewalls, and load balancers.

  • EU Commission Investigating Broadcom’s VMware Deal

    EU Commission Investigating Broadcom’s VMware Deal

    Broadcom’s acquisition of VMware hit another snag with the EU opening an investigation into the proposed deal.

    Broadcom and VMware reached a $61 billion deal in May 2022 that would see Broadcom purchase the virtualization company. The deal immediately sparked concern for VMware’s future, given Broadcom’s reputation for slashing expenses and forcing its subsidiaries to run incredibly lean operations.

    In November 2022, the UK’s Competition and Markets Authority (CMA) announced an investigation into the deal, and now the EU Commission has announced its own investigation.

    “Broadcom, a major supplier of hardware components, is acquiring VMware, a key server virtualisation software provider,” said Margrethe Vestager, Executive Vice-President in charge of competition policy. “Our initial investigation has shown that it is essential for hardware components in servers to interoperate with VMware’s software. We are concerned that after the merger, Broadcom could prevent its hardware rivals to interoperate with VMware’s server virtualisation software. This would lead to higher prices, lower quality and less innovation for customers and consumers.

    In particular, the Commission is worried that Broadcom may scale back some of the services that VMware offers to third-party companies, choosing to bundle them with its own hardware exclusively.

    Given the scrutiny tech acquisition have been under of late, the likelihood of Broadcom’s deal moving forward in the face of two separate investigations is certainly in question.

  • UK Regulators Will Review Broadcom/VMware Deal

    UK Regulators Will Review Broadcom/VMware Deal

    UK regulators have said they will review Broadcom’s planned purchase of VMware, creating a potential obstacle to the deal.

    Broadcom announced in May its plans to purchase VMware for $61 billion. The news sparked a wave of resignations, as well as general angst, with no one really knowing what to expect.

    According to a notice on its website, the UK’s Competition and Markets Authority (CMA) plans to conduct a review of the deal over competition concerns:

    The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

    The UK has already proven itself more willing to undo deals and acquisitions over competitive concerns, such as forcing Meta to sell off Giphy after buying the company for $400 million. Only time will tell if the Broadcom/VMware deal will survive regulators’ scrutiny.

  • VMware Fusion Brings Support for Apple’s Native Silicon

    VMware Fusion Brings Support for Apple’s Native Silicon

    VMware has released VMware Fusion 13, bringing native support for Apple Silicon Macs.

    VMware is one of the leading virtualization platforms, with the company’s Fusion program popular on macOS. The latest version brings native support for machines supporting Apple’s custom silicon, making it possible to run the Arm variant of Windows 11 on Apple’s computers.

    The company is offering Fusion 13 as a universal binary that can run on Intel chips and Apple Silicon.

    “On both Intel and Apple Silicon, Fusion 13 brings support for Windows 11 virtual machines,” writes Michael Roy, Product Line Manager for Desktop Hypervisor products. “In order to achieve support for Windows 11 System Requirements while still providing performant virtual machines, we had to innovate. We’ve delivered a new Virtual Trusted Platform Module (2.0) device that is recognized as a valid TPM, and new encryption method to support that TPM.”

    Interested parties can download the trial here: https://vmware.com/go/tryfusion

  • VMware Agrees to Settle With SEC Over Fraud Charges

    VMware Agrees to Settle With SEC Over Fraud Charges

    VMware has agreed to a settlement with the Securities and Exchange Commission (SEC) over fraud charges.

    According to the SEC, VMware pushed “revenue into future quarters by delaying product deliveries to customers, concealing the company’s slowing performance relative to its projections.”

    The SEC found that VMware deferred tens of millions of dollars in orders to future quarters, delaying delivery of licenses until a quarter ended. As a result, the company was able to give the appearance that sales and demand were stronger than they actually were.

    “As the SEC’s order finds, by making misleading statements about order management practices, VMware deprived investors of important information about its financial performance,” said Mark Cave, Associate Director in the Division of Enforcement. “Such conduct is incompatible with an issuer’s disclosure obligations under the federal securities laws.”

    Despite the SEC’s findings, the agency only charged VMware an $8 million fine, a relative drop in the bucket compared to it the company’s revenue.

  • Broadcom’s VMware Deal Brings Hope, Angst, and Resignations

    Broadcom’s VMware Deal Brings Hope, Angst, and Resignations

    Broadcom’s plans to purchase VMware are causing a range of reactions among outside experts and insiders, with no one knowing what to expect.

    Broadcom announced in late May that it had reached a deal to acquire virtualization company VMware for $61 billion. The deal was announced just months after VMware was spun off from Dell, becoming an independent company once again. The deal is also very much in line with Broadcom’s pattern of using acquisitions to rapidly expand its business.

    With the third-largest tech deal in history moving forward, opinions are all over the map regarding what to expect from the deal, although most agree on one point: Broadcom will aggressively push VMware to boost its margins and profitability.

    According to SiliconAngle’s Dave Vellante, Broadcom’s growth far outpaces VMware’s, 20% per year versus 3%. Similarly, Broadcom’s operating margin is 61%, far above VMware’s 25%. Even Oracle, a consistently highly profitable, only comes in at 47%.

    Vellante says Broadcom has a very simple approach, requiring business unit leaders to agree to milestones, goals, and financial targets. As long as those are met, everything runs smoothly. If the goals aren’t met, the business leader is given four or five quarters to get on target; otherwise, the business is sold off or killed.

    Broadcom’s approach doesn’t sound all bad to some. In fact, VMware User Group executive director Brad Tompkins posted a blog entitled: “Why the Broadcom announcement is good for you.”

    “I don’t think this is the end of the world,” he said in an interview with SiliconANGLE. “I think everyone has kind of gotten over it and is ready for information about what it means to them.”

    Not everyone shares Tompkins’ optimism, however. According to Business Insider, there’s a mass exodus from VMware as employees are disillusioned with the possibility of the deal going through.

    “It’s like a sinking ship and we’re being asked to row until we go under,” one engineer said, estimating that half of his work acquaintances are looking for other jobs. “Do I hang out here and the boat’s probably going to sink? Or do I jump ship because other people are?”

    “People feel betrayed,” one VMware engineer tells Insider. “For my team of 10 I know four of us are actively interviewing.” Another one said that “the only thing keeping many people here is the specter of a recession.”

    One thing is certain: VMware’s future has a lot of question marks in it.

  • Microsoft Organizing Cloud Vendors to Take On Amazon’s Government Dominance

    Microsoft Organizing Cloud Vendors to Take On Amazon’s Government Dominance

    Microsoft is working to put a dent in Amazon’s dominance in the government agency cloud computing space, organizing its rivals to help.

    Amazon’s AWS is the leading cloud provider platform, both in the private sector as well as the public. Microsoft is its largest rival, and the company is working on getting other companies to help lobby against Amazon’s dominance, according to a report in The Wall Street Journal.

    Microsoft has been sharing talking points with cloud providers Google and Oracle, as well as IBM, VMware, Dell, and HP Enterprise. The talking points are aimed at lobbying Washington to require a multi-vendor approach for large cloud contracts. According to WSJ’s sources, Microsoft has not included Amazon in its efforts.

    Read more: Microsoft Azure Is a Major Threat to AWS

    There’s certainly no love lost between Amazon and Microsoft, especially in their battle for the cloud market. Microsoft famously scored the Pentagon’s JEDI contract, worth some $10 billion, only to have Amazon relentlessly challenge the win in court until the Department of Defense was forced to abandon the contract in an effort to move forward with its cloud transition.

    Not long after, AWS won a $10 billion contract to provide cloud services to the National Security Agency. Microsoft challenged that contract award but was unsuccessful in overturning the results.

    More recently, an AWS exec took Microsoft to task over its cloud licensing terms, accusing the company of not putting customers’ needs first and engaging in anti-competitive behavior.

    It appears the rivalry between Microsoft and AWS is picking up steam with no end in sight. If Microsoft is successful in rallying the smaller cloud providers to its cause, it could represent the single biggest threat that AWS has ever faced.

  • Broadcom and VMware Reach Deal for $61 Billion

    Broadcom and VMware Reach Deal for $61 Billion

    Broadcom has reached a deal to acquire VWmare for $61 billion in one of the biggest tech acquisitions in history.

    News broke Sunday that Broadcom and VMware were in talks for the former to purchase the latter. At the time, there was no indication of a possible price or the terms of a potential deal. According to CNBC, the a deal has been struck for $61 billion in a cash-and-stock transaction.

    The deal would be the third-largest tech deal, behind Microsoft’s pending deal for Activision Blizzard at $69 billion and Dell’s purchase of EMC for $67 billion, and help Broadcom continue its diversification efforts.

    Broadcom is well known as one of the leading semiconductor manufacturers in the world, with its chips used in a wide array of products, such as smartphones, networking equipment, and more. The company has increasingly been moving into the enterprise software market, an unsurprising move given the volatility of the semiconductor market and the shortages it has been experiencing.

    It remains to be seen if the deal will pass regulators. Broadcom is well known for using acquisitions to help it grow, but its deals haven’t always been approved. In late 2017, the company made an attempt to acquire Qualcomm, in a bid the latter company rejected. Broadcom then tried to move forward in a hostile takeover attempt that was blocked by the US.

    Nonetheless, if the deal should go through, it will make Broadcom a major player in the virtualization and cloud market.

  • Broadcom May Buy VMware

    Broadcom May Buy VMware

    Just months after being spun off from Dell, VMware is reportedly in talks to be acquired by Broadcom.

    Broadcom is a leading semiconductor firm based in the US. Its products are used in everything from home networking to smartphones to data centers. The company has increasingly been diversifying beyond the semiconductor industry, with a focus on enterprise software. According to Reuters that includes pursuing a deal to purchase VMware.

    VMware helped pioneer the virtualization industry and leveraged that into becoming a cloud service provider. The company’s software helps power some of the biggest names in the business. The company was owned by Dell, before the latter spun it off in late 2021. Michael Dell maintained a 40% stake in VMware after the spin-off, potentially putting him in a position to benefit greatly from a sale to Broadcom.

    According to Reuters’ sources, the negotiations are ongoing, with no deal imminent. There were also no terms of the negotiations disclosed.

  • Microsoft Azure Usage Pulls Ahead of AWS

    Microsoft Azure Usage Pulls Ahead of AWS

    Microsoft continues to gain ground in the cloud market, even pulling ahead of leader AWS in some usage scnarios.

    AWS and Azure are the top two cloud platforms, with Google Cloud coming in third. Despite AWS still being the market leader, Flexera’s 2022 State of the Cloud Report shows Microsoft is making some impressive headway.

    According to the report, Azure surpassed AWS in the enterprise, with 80% of enterprises using it, as opposed to 77% using AWS. Similarly, 71% of enterprises are running at least 51 Azure virtual machines (VMs), as opposed to 69% for AWS.

    Microsoft is also slightly edging out AWS on spending among its installed base, with 53% of enterprise Azure users spending at least $1.2 million annually, as opposed to 52% of AWS users.

    Year-over-year adoptions rates also help gauge the relative strength of each platform in the market, with Microsoft showing the largest increase over 2021. Azure’s adoption rate in 2022 is 77% across all organizations, up from 73% in 2021. In contrast, AWS’ adoption rate dropped a point, from 77 to 76%. Google Cloud increased by one point, from 47 to 48%. Oracle dropped from 29 to 28%. IBM held steady at 24%, as did Alibaba Cloud at 12%,

    Microsoft has also made headway against VMware, with the Azure Stack being used in 37% of private clouds, compared to VMware’s 31%.

    Flexera’s report is good news for Microsoft as the Redmond giant clearly has significant momentum in the cloud market, putting pressure on its competitors, both above and below it.

  • VMware Completes Its Spin-Off From Dell

    VMware Completes Its Spin-Off From Dell

    VMware has completed its spin-off from Dell, becoming an independent company for the first time in 18 years.

    VMware is one of the leading virtualization companies. Its software is used by some of the biggest companies in the world, and has been instrumental in the transition to the cloud. The company was bought by EMC in 2004, which was in turn bought by Dell in 2016.

    In April of this year, the two companies announced that Dell would spin off VMware in a deal that was expected to top $9 billion, and help the PC maker address its outstanding debt.

    The spin-off was completed Monday, with Dell receiving $9.3 billion and VMWare free to pursue new opportunities.

    “By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders,” said Michael Dell, chairman and chief executive officer, Dell Technologies. “Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we bring solutions to customers. At the same time, Dell Technologies will continue to modernize its core infrastructure and PC businesses and embrace new opportunities through an open ecosystem to grow in hybrid and private cloud, edge and telecom.”

    “VMware’s mission is to deliver the trusted software foundation that accelerates our customers’ innovation,” said Raghu Raghuram, chief executive officer, VMware. “As a standalone company, we will continue to bring our multi-cloud strategy to life by providing our customers the power to accelerate their business and control their destiny in this new era.”

  • Government Agencies Hack REvil Ransomware Group, Taking It Offline

    Government Agencies Hack REvil Ransomware Group, Taking It Offline

    A group of government agencies have gone on the offensive against the REvil ransomware gang.

    REvil is one of the most notorious and prolific ransomware gangs. The gang is responsible for the Kaseya attack, believed to be the largest ransomware attack in history. REvil was also behind the JBS Foodsattack, and its associates were responsible for the Colonial Pipeline attack. The group went dark shortly after the Kaseya hack, before reappearing some time later.

    According to Reuters, a group of US agencies, in cooperation with other countries, have hacked REvil, significantly disrupting its operations.

    “The FBI, in conjunction with Cyber Command, the Secret Service and like-minded countries, have truly engaged in significant disruptive actions against these groups,” said Tom Kellermann, VMWare head of cybersecurity strategy and adviser to the U.S. Secret Service. “REvil was top of the list.”

    One of REvil’s leaders, “0_neday,” confirmed the group had been attacked.

    “The server was compromised, and they were looking for me,” 0_neday wrote on a cybercrime forum. “Good luck, everyone; I’m off.”

    Reuters reports that 0_neday is notable as one of the individuals who helped the group resume operations after the Kesaya attack, and inadvertently led to its demise. Following the Kesaya attack, law enforcement was able to obtain a decryption key and gain access to some of the group’s servers. After REvil’s websites went offline, 0_neday evidently restored the websites from backups, unaware the backups were made after the group’s servers had been compromised. This once again opened the door for law enforcement to mount their offensive.

    It’s too soon to know if REvil has been dealt a fatal blow, but the disruption is certain to be a welcome respite.

  • Dell May Sell Its Boomi Cloud Business

    Dell May Sell Its Boomi Cloud Business

    On the heels of its announced spin-off of VMware, Dell Technologies may be looking to sell its Boomi cloud business as well.

    Michael Dell has been on a mission to streamline the company that bears his name, and Dell has been offloading the various businesses it has acquired over the years, including RSA and VMware. According to Bloomberg, Dell is now exploring a sale of Boomi.

    Boomi specializes in helping companies integrate the various cloud platforms they use. It’s believed a sale of the business could be worth as much as $3 billion. The business could be an asset to any number of other companies looking to expand their cloud offerings.

    According to Bloomberg’s sources, the talks are still in their early stages and may not come to fruition.

  • VMware Wants to ‘Empower Today’s Anywhere Workforce’

    VMware Wants to ‘Empower Today’s Anywhere Workforce’

    VMware has launched VMware Anywhere Workspace in an effort to help companies and employees thrive in a remote work environment.

    VMware’s virtualization platform already powers some of the biggest names in tech, and now the company is turning its expertise toward helping companies succeed with their remote workforce.

    “Work is what you do, not where you do it. As businesses reimagine where and how teams collaborate and innovate, they must do more than transform. They must reform their mindset to create a digital-first culture that puts employee experience first,” said Sanjay Poonen, chief operating officer, customer operations, VMware. “We developed VMware Anywhere Workspace with this new way of working in mind. It will play an important role in creating stronger, more focused, and more resilient businesses.”

    VMware Anywhere Workspace is designed to provide robust security and make it easier for IT to support remote employees. To achieve this, the platform combines three solutions in one: VMware Workspace One, VMware Carbon Black Cloud and VMware SASE.

    Together the three solutions provide unified endpoint management, desktop and app virtualization, cloud-native endpoint and workload protection, cloud-delivered security functions, and a host of employee productivity, experience and security solutions.

    “A truly hybrid workforce is one that is enabled to work in any location, across any network and device, and with no trade-offs when it comes to employee productivity. However, delivering against this ideal has proven challenging for businesses that often rely on a complex set of legacy security practices and technologies,” said Adam Holtby, Principal Analyst, Omdia. “New security, management, and employee productivity solutions and practices are needed if businesses are to optimally enable and secure a more hybrid, anywhere workforce. This value proposition is at the core of VMware’s new solution, and it is one that has great potential to help the vendor become an important partner for businesses looking to embrace the Future of Work.”

    VMware Anywhere Workspace is available today.

  • Dell Will Spin-Off VMware in a $9 Billion Deal

    Dell Will Spin-Off VMware in a $9 Billion Deal

    Dell has announced plans to spin off VMware as a standalone company, in a deal expected to bring in $9 billion.

    VMware is a leading virtualization company, with its software powering some of the most critical digital infrastructure in the world. Dell originally acquired VMware as part of its EMC acquisition in 2015.

    The two companies have agreed to a spin-off for VMware, one that will provide Dell with $9.3 – $9.7 billion.

    “By spinning off VMware, we expect to drive additional growth opportunities for Dell Technologies as well as VMware, and unlock significant value for stakeholders,” said Michael Dell, chairman and chief executive officer, Dell Technologies. “Both companies will remain important partners, providing Dell Technologies with a differentiated advantage in how we bring solutions to customers. At the same time, Dell Technologies will continue to modernize its core infrastructure and PC businesses and embrace new opportunities through an open ecosystem to grow in hybrid and private cloud, edge and telecom.”

    At the same time, VMware expects the spin-off to open new doors for their business.

    “We will have an enhanced ability to extend our ecosystem across all cloud vendors and on-premises infrastructure vendors and a capital structure that will support growth opportunities,” said Zane Rowe, chief financial officer and interim chief executive officer, VMware. “Our strategic partnership with Dell Technologies remains a differentiator for us, and, as we execute on our multi-cloud strategy, we continue to provide customers our solutions and services on any public cloud and any infrastructure.”

    Aside from those stated benefits, much of the relationship will remain unchanged, with the two companies continuing to work closely together. In fact, Michael Dell will remain chairman of the VMware board.

    The deal is expected to close in the fourth quarter of 2021.

  • Intel Investing $20 Billion to Build Two Arizona Plants

    Intel Investing $20 Billion to Build Two Arizona Plants

    Intel has announced it is investing $20 billion to build two new chip factories in Arizona.

    Intel is in the process of trying to turn its business around, after several years of setbacks. The company has dealt with supply issues, quality control issues, security bugs and losing Apple, one of its biggest customers. The company is even outsourcing some of its chip production.

    The company’s turnaround began with a new CEO. VMware’s Pat Gelsinger replaced Bob Swan, and began aggressively working to help the company regain its former glory.

    As part of Intel’s latest initiative, Gelsinger announced plans to build two new factories in Arizona.

    “We are setting a course for a new era of innovation and product leadership at Intel,” said Gelsinger. “Intel is the only company with the depth and breadth of software, silicon and platforms, packaging, and process with at-scale manufacturing customers can depend on for their next-generation innovations. IDM 2.0 is an elegant strategy that only Intel can deliver – and it’s a winning formula. We will use it to design the best products and manufacture them in the best way possible for every category we compete in.”

    The company’s plans will result in thousands of jobs, and make a significant contribution to the local economy.

    This build-out represents an investment of approximately $20 billion, which is expected to create over 3,000 permanent high-tech, high-wage jobs; over 3,000 construction jobs; and approximately 15,000 local long-term jobs. Today, Arizona Gov. Doug Ducey and U.S. Secretary of Commerce Gina Raimondo participated with Intel executives in the announcement. Gelsinger commented: “We are excited to be partnering with the state of Arizona and the Biden administration on incentives that spur this type of domestic investment.” Intel expects to accelerate capital investments beyond Arizona, and Gelsinger said he plans to announce the next phase of capacity expansions in the U.S., Europe and other global locations within the year.

    It remains to be seen if Intel can undo its recent setbacks, but today’s announcement is a step in the right direction.

  • VMware’s Pat Gelsinger to Replace Bob Swan as Intel CEO

    VMware’s Pat Gelsinger to Replace Bob Swan as Intel CEO

    Intel has announced VMware CEO Pat Gelsinger will replace Bob Swan as CEO, effective February 15.

    Intel has been struggling in recent years, facing a host of problems. It has witnessed the rise of Arm-based chips, used in everything from phones to computers. AMD, a rival that historically has lagged behind Intel, has been resurgent, releasing chips that have challenged Intel’s core business. In addition to external threats, the company has faced internal problems, including the loss of leading chip engineers, “unfixable” security issues and ongoing production problems.

    Intel’s troubles even lead the Third Point hedge fund to pen a letter to Intel, demanding changes to address the problems. Swan indicated a willingness to work with Third Point on potential solutions.

    Intel has now announced a change in its top leadership, bringing Gelsinger onboard to replace Swan. Gelsinger is widely seen as one of the best choices to lead the company. He is a 30-year Intel veteran, giving him invaluable experience and insight into company culture. Most recently, he has served as CEO of VMware since 2012, leading that company to some of its greatest successes.

    “Pat is a proven technology leader with a distinguished track record of innovation, talent development, and a deep knowledge of Intel. He will continue a values-based cultural leadership approach with a hyper focus on operational execution,” said Omar Ishrak, independent chairman of the Intel board. “After careful consideration, the board concluded that now is the right time to make this leadership change to draw on Pat’s technology and engineering expertise during this critical period of transformation at Intel. The board is confident that Pat, together with the rest of the leadership team, will ensure strong execution of Intel’s strategy to build on its product leadership and take advantage of the significant opportunities ahead as it continues to transform from a CPU to a multi-architecture XPU company.”

    “I am thrilled to rejoin and lead Intel forward at this important time for the company, our industry and our nation,” said Gelsinger. “Having begun my career at Intel and learned at the feet of Grove, Noyce and Moore, it’s my privilege and honor to return in this leadership capacity. I have tremendous regard for the company’s rich history and powerful technologies that have created the world’s digital infrastructure. I believe Intel has significant potential to continue to reshape the future of technology and look forward to working with the incredibly talented global Intel team to accelerate innovation and create value for our customers and shareholders.”

    Gelsinger has a big challenge ahead of him, as he tries to turn things around at the beleaguered chipmaker. It remains to be seen if he will be successful, although he certainly has the background and experience to have a fighting chance.

  • VMware Posts Q3 Results, Beats Estimates

    VMware Posts Q3 Results, Beats Estimates

    Dell Technologies’ VMware posted its third-quarter results, beating estimates on strong subscription and SaaS growth.

    VMware is a leading virtualization software company, with its software in use by many of the biggest organizations in the world. The company’s software is also seeing widespread use in cloud infrastructure, with many telcos relying on it to help speed up 5G deployment.

    The company has reported its Q3 results, beating consensus estimates on $2.86 billion in revenue. Subscription, SaaS and license revenue accounted for $1.32 billion, an increase of 10% from the year-ago quarter. The subscription and SaaS revenue alone was $676 million, a 44% increase over the year-ago quarter.

    “Q3 was another good quarter for VMware, and we’re pleased with our results,” commented Pat Gelsinger, CEO, VMware. “As customers navigate through these unprecedented times, our focus remains on delivering the digital foundation for an unpredictable world. We continue to shape the future in areas that are top priority for every business–from app development to multi-cloud to security and digital workspaces.”

    “Subscription and SaaS revenue increased 44% year-over-year in Q3 and surpassed license revenue for the first time,” said Zane Rowe, executive vice president and CFO, VMware. “VMware will continue to invest in and focus on further expanding our Subscription and SaaS portfolio, which we believe will drive company growth, customer satisfaction and shareholder value.”

  • VMware COO: We Are So Happy That Zoom Exists

    VMware COO: We Are So Happy That Zoom Exists

    VMware COO Sanjay Poonen says that Zoom has changed the future of work:

    We are so happy that Zoom exists. When I was last in a pandemic in 2008 I was at SAP and we were all in a room sitting by a telepresence machine. It was so hot and only 10 or 15 people could sit at the same time. Then I first saw Zoom on my phone and it was beautiful. We obviously want to balance work and life and be in this place where we are concerned about both our physical and mental health. Physical health is important but mental health is equally important.

    We’re obviously helping companies through the pandemic. We’ve just adopted some best practices. We think we’re going to create Work 2.0. In the future of work-force-ware, we make it the best to work in any location. I recently had a lady that was going to do a global demand gen job. Initially, we would have thought that she could have done that job from Palo Alto only. She’s now doing that job from Sydney and doing an incredible job.

    We want to make VMware the best place to work. Then at the end of the day, each person has got to find their personal space by which they figure out the things that trample them back to work. Every day for me it’s my faith, my family, my friends. I’ve got a routine, whether it’s biking or whatever lets you get prepared for the next day. We are potentially going to be in this for the long haul.

    VMware COO Sanjay Poonen: We Are So Happy That Zoom Exists
  • VMWare & Nvidia Partner To Democratize AI

    VMWare & Nvidia Partner To Democratize AI

    “What we’re announcing today is the democratization of AI,” says VMWare CEO Pat Gelsinger. “VMWare and Nvidia are coming together to leverage all the work they have done over the last decade and a half in AI. This partnership will put it on the industry-standard VMWare footprint to enable every enterprise to have this game-changing technology of AI. We see it as a game-changer for the AI industry broadly.”

    Patrick Gelsinger, CEO of VMWare, announced just before this year’s huge virtual VMworld 2020 conference a partnership with Nvidia that will bring on the democratization of AI:

    The Democratization Of AI

    Nvidia and VMWare are coming together in a new partnership. Nvidia has been building their capabilities in artificial intelligence are for quite a number of years. But AI is used by only 10 to 15% of enterprises where specialized hardware sits in the corner of the data center and is only available in remote cloud environments. What we’re announcing today is the democratization of AI. VMWare and Nvidia are coming together to leverage all the work they have done over the last decade and a half in AI.

    This partnership will put it on the industry-standard VMWare footprint to enable every enterprise to have this game-changing technology of AI. Literally, that software can introspect on data and write software and bring that to every enterprise application. We are quite excited about the partnership. Nvidia CEO Jensen Huang and I have known each other for several decades and it really is exciting to see us bring the partnership to the next level.

    Making AI Broadly Available For Enterprises

    We are excited about it. We do see that this idea that we can now make AI broadly available for enterprises. It’s exciting for Nvidia because even as successful as they’ve been, they are still only cracking a small piece of the application workload. For us, this is a major accelerant not just in the data center but also extending to the Edge. As we see 5G and Edge emerge this is a major new area for both companies.

    With our Tanzu offerings and virtualization offerings, it really is saying that now every enterprise can start to take availability of these powerful AI capabilities. We see it as a game-changer for the AI industry broadly and cleary an accelerant for us and for Nvidia and for our financials.

    The Edge – Next Major Move Of Application Development

    Multi-cloud is the core of our Tanzu offerings. We want to help companies take advantage of the most modern CI/CD pipeline DevOps, DevSecOps capabilities. But they need to be able to take advantage of it in their private data centers, across multiple clouds, and to the Edge. For this, clearly, our preferred partnership with Amazon has really taken off. Now with Azure and Google and Oracle and the Alibaba partnership showing up now they can take advantage of that across any cloud and be able to go from their private data centers to the cloud and back.

    We now have major customers of which a number of those we are highlighting at VMWorld who really are taking advantage of both to the cloud as well as from the cloud. This hybrid approach enables us to save 30% on average for customers. It’s a big savings but it also enables customers to have consistent developer environments and take advantage of the Edge. The Edge will be the next major move of application development as 5G starts to become broadly available in the industry.