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Partnering with Amazon to Help VMware in Virtualization Space

Anne Shields - Author

Oct. 21 2016, Updated 10:04 a.m. ET

Cloud IaaS services would drive growth in the public cloud space

Previously in this series, we discussed VMware’s (VMW) recently announced partnership with Amazon.com (AMZN). We also discussed significant growth expected in the public cloud space, which is one of the reasons VMware might have entered into an alliance with Amazon.

A significant chunk of the double-digit growth in the public cloud space is projected to come from IaaS (infrastructure-as-a-service) or cloud infrastructure services.

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VMware’s leadership in the virtualization space

According to Gartner, “Virtualization (in the form of VMs and containers) is a fundamental enabler to IaaS, and it will be used to establish private cloud services, public cloud services, and interoperable hybrid cloud services. Effectively, all IaaS offerings will rely on VMs or container technology.”

Along with Microsoft (MSFT), VMware was named a leader in the x86 server virtualization infrastructure space in Gartner’s Magic Quadrant. Since VMware is a leader in this space, it’s expected to benefit from rapid growth in the cloud IaaS space. For this reason, the Amazon partnership would give a significant boost to VMware’s position in virtualization software space.

Notably, VMware has been ranked by IDC as a market share leader in worldwide cloud systems management and data center automation software markets based on its 2015 revenues for the third straight year.


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