Unveiling Business Strategy: VMware

November 21, 2019 0 comments


VMware, Inc. is the leader in virtualization and cloud infrastructure solutions. It enables businesses to transform the way they develop, deliver and consume information technology (IT) resources in a manner that is based on their specific needs. The company was founded in 1998 and launched officially early in the second year, in February 1999.

VMware is focusing largely on introducing the world with its continuous product innovations. The company pioneered the development and application of virtualization technologies with x86 server-based computing. In May 1999, VMware launched its first product, VMware Workstation, and entered the server market in 2001 with VMware GSX Server (hosted) and VMware ESX Server (hostless).

Recently, in November 2019, VMware announced VMware vRealize Operations Cloud and Project Magna, both are SaaS-based solutions. As, in one hand, VMware vRealize Operations Cloud is designed to offer self-driving operations to automate and simplify operations management with AI/ML to move IT approach from reactive troubleshooting to predictive innovation, on the other hand, Project Magna aimed at assisting customers to achieve a true ‘Self-Driving Data Center’, starting with VMware vSAN.

In the same year of September, VMware in partnership with Oracle launched Oracle Cloud VMware Solution to expedite the pace of digital transformation in organizations globally. With this solution, customers can now build VMware virtual server environments natively on Oracle Cloud Infrastructure for the first time. The company has also unveiled innovations to its VMware Workspace, ONE digital workspace platform, in August 2019. With this platform, organizations can engage employees from the moment they sign their offer letter, and to unleash productivity to grow, expand and transform their business.

In April 2018, VMware injected advanced analytics into its VMware vRealize Suite, enabling companies to manage IT environments based on intent instead of having to manually every process themselves. In May 2017, the company launched VMware Pulse IoT Center, a secure, enterprise-grade Internet of Things (IoT) infrastructure management solution. With this solution, IT and operational technology teams have access to complete control of their IoT infrastructure and things. In September 2016, VMware announced the release of Workstation 12.5 and Fusion 8.5 as a free upgrade supporting Windows 10 and Windows Server 2016. The company launched its own IaaS service, vCloud Hybrid Service in May 2013. It also released an open-source platform-as-a-service system named Cloud Foundry, as well as a hosted version of the service in April 2011.

Thus, over the years, VMware has increased its product offerings, enabling organizations to manage IT resources across private clouds and complex multi-cloud, multi-device environments.


Driving Innovation by Forging Technology Partnerships

For its product innovation and to expand its offering to a wide market, VMware established several key strategic alliances with top-notch brands. In its latest partnership, the company, in November 2019, expanded its collaboration with Nokia to ease large-scale, multi-cloud operations. The company has also expanded its partnership with Oracle in September 2019. With this alliance, customers leverage the companies’ enterprise software and cloud solutions to make the move to the cloud. Also, in July, VMware established a strategic partnership with Google Cloud, with announcing Google Cloud VMware Solution by CloudSimple that enables organizations to run their VMware workloads in Google Cloud Platform.

In February 2019, VMware also signed a global partnership with Ericsson to simplify deploying and running a combination of Ericsson applications and VMware’s vCloud NFV platform for CSPs. In September 2018, the company collaborated with Microsoft for its NSX SD-WAN. The partnership enables NSX SD-WAN to be integrated with Microsoft Azure Virtual WAN, enabling customers across all industries that have business resources in Azure to gain simple, automated and high-performance connectivity to the branch.

In May 2018, VMware teamed up with Okta, the leading provider of identity for the enterprise, to Deliver Advanced Identity Capabilities for the Digital Workspace. And in February, the company announced a new alliance with Tech Mahindra to deliver solutions that accelerate network transformation for Communication Service Providers (CSPs).

In March 2017, VMware collaboration with Fujitsu to bring innovative IoT solutions to customers in the automobile industry. The company also expanded its partnership with Samsung, in the same month, to deliver a next-generation unified mobile and desktop experience to solve mobile workforce challenges. In February 2017, VMware joined hand with VizExplorer, a leading provider of operational intelligence solutions, to develop integrated IoT solutions. Prior to this, in October 2016, the company made an announcement to partner with GigaSpaces to advance open, standards-based orchestration for network functions virtualization (NFV) applications.

VMware also partnered with Intel Security, in January 2016, to integrate mobile security into the enterprise threat defense lifecycle. And in November 2013, VMware forged a partnership with Mirantis to develop and deliver solutions that help customers to expedite large-scale cloud deployments based on the Mirantis OpenStack distribution and VMware technologies.

With all these key alliances and partnerships, VMware enhances its product offering capabilities to the market and established itself as the global leader in virtualization and cloud infrastructure.


Strengthening New Heights Through Acquisitions

VMware makes extensive investments and acquisitions of cloud computing and virtualization software and services companies globally to strengthen its product portfolio. Recently, in October 2019, the company completed its acquisition of Carbon Black, a leader in cloud-native endpoint protection, for US$26 per share, representing an enterprise value of US$2.1 billion. In August, VMware acquired Pivotal for US$2.7 billion. Pivotal offers a powerful set of developer assets with a leading developer-centric platform and services that stimulate modern app development.

In July 2019, VMware acquired Uhana, which has developed a real-time deep learning engine to optimize carrier network operations and application quality experience, deployable in the operator private cloud or public cloud infrastructure. The company, in May, also acquired Bitnami, which offers a suite of products and projects, accelerating the delivery of applications to multiple clouds including Kubernetes environments.

In November 2018, VMware acquired Heptio, a leader in the open Kubernetes ecosystem providing products and expertise that helps organizations deploy and operationalize Kubernetes, for US$550 million. This acquisition opens new channels for VMware to further engage the open-source community and harden upstream Kubernetes as well as support the cloud-native needs of the largest enterprises in the world. In March 2018, the company acquired E8 Security. With this acquisition, VMware further reinforces its commitment to deliver the industry’s first intelligence-driven digital workspace to empower employee experience and drive predictive security. The company has also acquired Apteligent, an innovator in mobile application performance and engagement insights in May 2017.

In June 2016, VMware purchased Arkin Net, a leader in software-defined data center security and operations. With this acquisition, VMware able to help customers to accelerate their adoption of VMware NSX and Software-Defined Data Centers. In August 2014, the company acquired CloudVolumes, a leading provider of real-time application delivery technology.

Through these strategic acquisitions, VMware expands and enhances its product lines to offer full suites of products that deliver a more dynamic, scalable, integrated and efficient architecture.


Robust Research & Development

VMware has made and expects to continue to make, significant investments in research and development. The company has assembled an experienced group of developers with systems management, public and private cloud, desktop, digital mobility, security, applications, software-as-a-service, networking, storage and open source software expertise. It also has strong ties with leading academic institutions worldwide and invests in joint research with academia.

VMware’s R&D culture places a high value on innovation, quality and open collaboration with its partners. Currently, the company participates in numerous standard groups, and its employees hold a variety of standard organization leadership positions. VMware continues to invest in its key growth products, including NSX and vSAN, while also investing in areas that it expects to be significant growth drivers in future periods.


Leading Ahead in Competition

VMware is not alone in this space as several competitors may challenge the company. Its competitors include the providers of public cloud infrastructure and SaaS-based offerings; Large, diversified enterprise software and hardware companies; Companies offering competing platforms based on open source technologies and Other industry alliances.

VMware also faces competition from its partners. Because third parties who are currently selling its products and services could build and market their own competing products and services or market competing products and services of other vendors. Moreover, as formerly distinct sectors of enterprise IT such as software-based virtualization and hardware-based server, networking and storage solutions converge, VMware also increasingly compete with companies who are members of its developer and technology partner ecosystem.


The Future Overview

As a pioneer of virtualization applications, VMware provides compute, cloud, mobility, networking and security infrastructure software to businesses that offer a flexible digital foundation for the applications, empowering organizations to serve their customers globally.

The company continues to broaden its product and solution offerings beyond compute virtualization to include offerings that enable organizations to manage IT resources across private clouds and complex multi-cloud, multi-device environments by leveraging synergies across three categories – Software-Defined Data Center (SDDC), Hybrid Cloud Computing and End-User Computing (EUC).

VMware’s portfolio supports and addresses the key IT priorities of its customers, and creates solutions that enable the digital transformation its customers need as they ready their applications, infrastructure and devices for their future business needs.

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