Everyone loves a good breakup story, even when it’s amicable. This blog post will not stand up to juicy tabloid standards, but it will provide relevant information regarding VMware’s split from Dell and what this move means for its partners like IT Vortex and their clients.
VMware Is Once Again a Standalone Company
VMware is now on its own and is no longer a part of its former parent firm, Dell. There are two main reasons behind this breakup.
The first is that splitting offers both companies the opportunities to work with new partners, expand technologies, and look to new market opportunities while maintaining close ties.
The second reason has to do with financial impacts. VMware has been shifting to more cloud-based models. They expect subscription revenue to exceed 40% of its total by January 2025. The split also means that VMware will be looking for deals and partnerships with cloud computing providers. Furthermore, VMware is eyeing “large-scale” acquisitions to help the company grow.
VMware CEO Talks About The Spin-Off From Dell
Don’t just take our word for it. Raghu Raghuram, the CEO of VMware, sees flexibility as a key element “to partner even more deeply with all cloud and on-premises infrastructure companies.” He also emphasizes that increasing “flexibility to complete future acquisitions will help us remain competitive.”
IT Vortex’s translator: VMware is looking to grow, expand and position itself to be a big player in the cloud. The cloud computing company wants to be “at the center of it with VMware Cross-Cloud Services to empower customers to unlock the full potential of multi-cloud solutions.”
VMware Is Now Looking To Cloud Partnerships
VMware changed how big companies use data centers. It accomplished this by letting data center owners divide physical servers into “virtual” machines, facilitating scaling up or down. Being a cornerstone of an industry means you can either double down and fine-tune what you do best or lean in and embrace innovation and change. The latter is what VMware is announcing they want to do. With many large companies either entirely or partially moving infrastructures to Amazon Web Services and Microsoft Azure, some analysts predicted VMware’s usefulness would have come into question sooner or later.
The key point for VMware and partners like IT Vortex is that many businesses use a hybrid model. This combines their own data centers and usually one or more cloud providers. The hybrid approach is one of the reasons cloud providers form partnerships with VMware.
Raghuram stated he wants “to aggressively pursue more of those deals”’ and “be the Switzerland of the industry.”
VMware is Looking Ahead
VMware’s strategy also takes into account the rise of remote workforces. Raghuram said that VMware is keen to “create products which enable multi-cloud operations, meet the needs of remote workers and make it easier for developers to build and launch new apps.”
VMware and Dell Will Still Work Together
Even breakups can be friendly; this is the case with Dell and VMware, who are expected to still work together. After all, Dell founder and Chief Executive Officer Michael Dell is the chairman of VMware’s board.
The post-spin-off story has Dell investing big in edge computing. With an estimated “75% of enterprise data to be processed outside of a traditional data centers by 2025,” Dell very much wants to be the engine for this acceleration of digital transformation processes.
How This Affects IT Vortex and Our Clients
We at IT Vortex could not be more excited about these new opportunities. As long and trusted partners of both Dell and VMware, we know their technologies and offerings very well. This spin-off a great step forward in what we can offer our clients. For the past five years and especially in these last two years, we have seen that our agility and innovation are essential to help clients find the best cloud solutions for their digital transformation initiatives. This spin-off will only strengthen our offerings and help us successfully find the best solutions for our clients.
“I am excited to see how VMware’s separation from Dell unfolds in the coming weeks and months,” Lou Corriero, VP of Business Development at the IT Vortex, says. “One such important point is that VMware is now back in the driver’s seat for its software update cycle and QC process. This should benefit all customers in the long term, as VMware is also no longer bound by the invisible “Dell Hardware First” policy. Now it can truly become hardware agnostic once again.”
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