How VMware Will Benefit from the Amazon Web Services Partnership

Driving cloud platform

The ongoing migration of data storage from on-premises data warehouses to the cloud has propelled virtualization operator VMware (VMW) to boost its server, network, management, and storage virtualization through the cloud. The company’s main objective is to provide a single cloud platform for all applications and devices.

To boost its cloud platform, the company has taken the initiative to launch the VMware Cloud Foundation, an integrated SDDC (software-defined data center) suite that consists of products such as vSphere, vSAN (virtual storage area network), and NSX. These products deliver better cloud infrastructure for both private and public clouds.

How VMware Will Benefit from the Amazon Web Services Partnership

The benefit of the AWS alliance

As part of its expansive cloud growth strategy, VMware teamed up with Amazon (AMZN) Web Services (or AWS) in October 2016 to deliver an integrated hybrid cloud platform. The platform is already available in London and Frankfurt. VMware is also planning to introduce its AWS service in the Asia-Pacific and Japan regions in the second half of 2018. The company’s AWS partnership is supporting higher customer renewal rates. Both the renewal amount and the duration remained on the high side.

VMWare’s strategic alliance with Amazon’s AWS cloud platform has not only provided flexibility to its clients but also saved on costs due to higher market reach.

In the graph above, we can see the overall revenue growth for VMware over the last five quarters. During the period, the company has maintained double-digit growth on a consistent basis, which clearly indicates that it’s gaining from the partnership.

To strengthen its security features and to boost its software support, VMWare has joined forces with leading tech giant IBM (IBM).