Over the past two years, VMware has been on a journey to simplify its portfolio and transition from a perpetual to a subscription model to better serve customers with continuous innovation, faster time to value, and predictable investments.
Both VMware Cloud Foundation and VMware vSphere Foundation will have optional advanced add-on offers. Our storage offering, ransomware and disaster recovery service, and application platform services are available on both offers. And Application Network and Security offerings are available for VMware Cloud Foundation. Additional advanced services and offerings, including Private AI, will be available soon.
A: The industry has already widely embraced subscription and SaaS, and many partners in our ecosystem have already developed success practices in this area. Subscription and SaaS models provide an opportunity for partners to engage more strategically with customers and deliver higher-value services that drive customer success. It also helps accelerate their own transition to a business model focused on annual recurring revenue.
A: As part of our transition to subscription and a simplified portfolio, beginning today, we will no longer sell perpetual licenses. All offerings will continue to be available as subscriptions going forward. Additionally, we are ending the sale of Support and Subscription (SnS) renewals for perpetual offerings beginning today.
A: This shift is the natural next step in our multi-year strategy to make it easier for customers to consume both our existing offerings and new innovations. VMware believes that a subscription model supports our customers with the innovation and flexibility they need as they undertake their digital transformations.
A: This is an excellent time for customers to assess their current state with VMware infrastructure and management products. We encourage customers to review their inventory of perpetual licenses, including refresh cycles and renewal dates, and become more familiar with VMware's available subscription offers. Customers should also contact their VMware or partner representative for more information.
A: The product simplification across the VMware Cloud Foundation division stems from customer and partner feedback requesting we reduce the complexity of our offers and go-to-market. Going forward, the VMware Cloud Foundation division will feature two primary offers: VMware Cloud Foundation, the new VMware vSphere Foundation and our Hybrid Cloud services and offers. Additionally, we offer VMware vSphere Standard and VMware vSphere Essentials Plus for deployments with more limited requirements.
A: VMware vSphere Foundation is a new solution that combines our full-featured server virtualization platform, vSphere with intelligent operations management to deliver the best performance, availability, and efficiency with greater visibility and insights. For customers seeking an HCI solution, we offer VMware vSAN as an add-on to vSphere Foundation, which includes all the capabilities of vSAN including vSAN Max.
VMware LLC is an American cloud computing and virtualization technology company headquartered in Palo Alto, California.[2] VMware was the first commercially successful company to virtualize the x86 architecture.[3]
In 1998,[7] VMware was founded by Diane Greene, Mendel Rosenblum, Scott Devine, Ellen Wang and Edouard Bugnion.[8] Greene and Rosenblum were graduate students at the University of California, Berkeley.[9] Edouard Bugnion remained the chief architect and CTO of VMware until 2005[10] and went on to found Nuova Systems (now part of Cisco). VMware operated in stealth mode for the first year, with roughly 20 employees by the end of 1998. The company was launched officially early in the second year, in February 1999, at the DEMO conference organized by Chris Shipley.[11] The first product, VMware Workstation, was delivered in May 1999, and the company entered the server market in 2001 with VMware GSX Server (hosted) and VMware ESX Server (host-less).[11][12]
On January 9, 2004, under the terms of the definitive agreement announced on December 15, 2003, EMC (now Dell EMC) acquired the company with $625 million in cash.[13][14] On August 14, 2007, EMC sold 15% of VMware to the public via an initial public offering. Shares were priced at US$29 per share and closed the day at US$51.[15][16]
On July 8, 2008, after disappointing financial performance, the board of directors fired VMware co-founder, president and CEO Diane Greene, who was replaced by Paul Maritz, a 14-year Microsoft veteran who was heading EMC's cloud computing business unit.[17] Greene had been CEO since the company's founding, ten years earlier.[18] On September 10, 2008, Mendel Rosenblum, the company's co-founder, chief scientist, and the husband of Diane Greene, resigned.[19]
On September 16, 2008, VMware announced a collaboration with Cisco Systems.[20] One result was the Cisco Nexus 1000V, a distributed virtual software switch, an integrated option in the VMware infrastructure.[21]
On April 12, 2011, VMware released an open-source platform-as-a-service system called Cloud Foundry, as well as a hosted version of the service. This supported application deployment for Java, Ruby on Rails, Sinatra, Node.js, and Scala, as well as database support for MySQL, MongoDB, Redis, PostgreSQL, and RabbitMQ.[23][24]
In March 2013, VMware announced the corporate spin-off of Pivotal Software, with General Electric investing in the company. Most of VMware's application- and developer-oriented products, including Spring, tc Server, Cloud Foundry, RabbitMQ, GemFire, and SQLFire were transferred to this organization.[26]
In May 2013, VMware launched its own IaaS service, vCloud Hybrid Service, at its new Palo Alto headquarters (vCloud Hybrid Service was rebranded vCloud Air and subsequently sold to cloud provider OVH), announcing an early access program in a Las Vegas data center. The service is designed to function as an extension of its customer's existing vSphere installations, with full compatibility with existing virtual machines virtualized with VMware software and tightly integrated networking. The service is based on vCloud Director 5.1/vSphere 5.1.[27]
In September 2013, at VMworld San Francisco, VMware announced the general availability of vCloud Hybrid Service and expansion to Sterling, Virginia, Santa Clara, California, Dallas, Texas, and a service beta in the UK. It announced the acquisition of Desktone in October 2013.[28]
In January 2016, in anticipation of Dell's acquisition of EMC, VMware announced a restructuring to reduce about 800 positions, and some executives resigned.[29][30][31][32][33] The entire development team behind VMware Workstation and Fusion was disbanded and all US developers were immediately fired.[29][30][31][33] On April 24, 2016, maintenance release 12.1.1 was released. On September 8, 2016, VMware announced the release of Workstation 12.5 and Fusion 8.5 as a free upgrade supporting Windows 10 and Windows Server 2016.[34]
In April 2016, VMware president and COO Carl Eschenbach left VMware to join Sequoia Capital, and Martin Casado, VMware's general manager for its Networking and Security business, left to join Andreessen Horowitz. Analysts commented that the cultures at Dell and EMC, and at EMC and VMware, are different, and said that they had heard that impending corporate cultural collisions and potentially radical product overlap pruning, would cause many EMC and VMware personnel to leave;[35] VMware CEO Pat Gelsinger, following rumors, categorically denied that he would leave.[36][32]
On January 13, 2021, VMware announced that CEO Pat Gelsinger would be leaving to step in at Intel.[41] Intel is where Gelsinger spent 30 years of his career and was Intel's first chief technology officer. CFO Zane Rowe became interim CEO while the board searched for a replacement.
On April 15, 2021, it was reported that Dell would spin off its remaining stake in VMware to shareholders and that the two companies would continue to operate without major changes for at least five years.[42] The spinoff was completed on November 1, 2021.[43]
Beginning in January 2022, hackers infiltrated servers using the Log4Shell vulnerability at organizations who failed to implement available patches released by VMware according to PCMag.[46] ZDNET reported in March 2022 that hackers utilized Log4Shell on some customers' VMware servers to install backdoors and for cryptocurrency mining.[47] In May 2022, Bleeping Computer reported that the Lazarus Group cybercrime group, which is possibly linked to North Korea, was actively using Log4Shell "to inject backdoors that fetch information-stealing payloads on VMware Horizon servers", including VMware Horizon.[48]
On May 26, 2022, Broadcom announced its intention to acquire VMware for approximately $61 billion in cash and stock in addition to assuming $8 billion of VMware's net debt, and that Broadcom Software Group would rebrand and operate as VMware.[49][50]
In November 2022, the UK's Competition and Markets Authority regulator announced it would investigate whether the acquisition would "result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".[51][52]
The transaction closed on November 22, 2023,[6] after a prolonged delay in getting approval from the Chinese regulator on an additional condition that VMware's server software should maintain compatibility with third-party hardware and not require the use of Broadcom's hardware products.[53][54] On completion, Broadcom reorganized the company into four divisions: VMware Cloud Foundation, Tanzu, Software-Defined Edge, and Application Networking and Security,[55] and subsequently laid off over 2,800 employees.[56]
On December 13, 2023, VMware ended availability for perpetually licensed products such as vSphere and Cloud Foundation, moving exclusively to subscription-based offerings. The company stated that this had been planned as an eventuality prior to the Broadcom acquisition.[57]
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