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Why VMware Sold Its vCloud Air

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Apr. 25 2017, Updated 1:06 p.m. ET

Sale of vCloud Air

Earlier in the series, we discussed VMware’s (VMW) recent acquisition of Wavefront. Before acquiring Wavefront, VMware made the news when it announced the sale of its vCloud Air to OVH.

OVH is a France-based cloud company that has partnered with VMware in the past.

The financial terms of the deal weren’t disclosed. Upon the sale’s completion, vCloud Air will operate as “vCloud Air Powered by OVH.” OVH will continue to work with VMware. Despite its sale of the vCloud Air to OVH, VMware continues to own the core hybrid cloud technology that was the foundation of the product.

The vCloud Air network was VMware’s public cloud offering. Based on its SDDC (software-defined data center) capability, the vCloud Air Network was designed to cater to enterprise requirements.

With its sale of the vCloud Air, VMware exited the public cloud space, and it’s now focused on private cloud and cross-cloud architecture. Earlier in the series, we discussed how VMW’s Wavefront acquisition would enhance its cross-cloud architecture.

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VMware leads in private cloud adoption

According to the RightScale 2017 State of the Cloud Report, VMware’s vSphere leads the private cloud space, with 42% of respondents adopting it for private cloud deployments. It’s followed by OpenStack with 20% adoption.

Later in the series, we’ll discuss the reason for VMware’s decision to sell vCloud Air.

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