VMware, Inc. has finally confirmed its strategic partnership with rival Amazon.com’s (AMZN - Free Report) Amazon Web Services (AWS).
Rumors regarding this deal have been doing the rounds for the past few days leading to speculations regarding the details and scope of the agreement.
The two entities are getting together to offer an integrated hybrid cloud solution, functioning much like a software-defined data center (SDDC). This contract will enable users to run VMware software (vSphere, Virtual SAN and NSX) on the Amazon cloud apart from the internal servers. The company stated that the new solutions will likely be available by mid-2017.
Per the press release “Delivered, sold, and supported by VMware as an on-demand, elastically scalable service, VMware Cloud on AWS will allow VMware customers to use their existing VMware software and tools to leverage AWS’s global footprint and breadth of services, including storage, databases, analytics, and more.”
The move comes at a time when VMware is strengthening its place in the virtualization server market. It is expanding its expertise from just servers to now include networking and storage as well. Enabling software support on cloud is a positive as many enterprises now prefer public cloud platforms like Amazon, Microsoft and Alphabet’s (GOOGL - Free Report) Google over internal servers to optimize costs while maximizing flexibility.
In Feb 2016, VMware entered into a similar deal with International Business Machines Corporation (IBM - Free Report) . The contract enabled VMware’s VSphere customers to initiate workloads on the IBM SoftLayer cloud infrastructure.
With such partnerships, VMware is placing itself well to benefit from the increasing adoption of cloud-based solutions. Per a Gartner report, global spending on cloud technology is expected to increase 25% annually over the next few years, which will result in higher demand for virtualization capabilities.
Currently, VMware has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
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VMware, Inc. has finally confirmed its strategic partnership with rival Amazon.com’s (AMZN - Free Report) Amazon Web Services (AWS).
Rumors regarding this deal have been doing the rounds for the past few days leading to speculations regarding the details and scope of the agreement.
The two entities are getting together to offer an integrated hybrid cloud solution, functioning much like a software-defined data center (SDDC). This contract will enable users to run VMware software (vSphere, Virtual SAN and NSX) on the Amazon cloud apart from the internal servers. The company stated that the new solutions will likely be available by mid-2017.
Per the press release “Delivered, sold, and supported by VMware as an on-demand, elastically scalable service, VMware Cloud on AWS will allow VMware customers to use their existing VMware software and tools to leverage AWS’s global footprint and breadth of services, including storage, databases, analytics, and more.”
The move comes at a time when VMware is strengthening its place in the virtualization server market. It is expanding its expertise from just servers to now include networking and storage as well. Enabling software support on cloud is a positive as many enterprises now prefer public cloud platforms like Amazon, Microsoft and Alphabet’s (GOOGL - Free Report) Google over internal servers to optimize costs while maximizing flexibility.
In Feb 2016, VMware entered into a similar deal with International Business Machines Corporation (IBM - Free Report) . The contract enabled VMware’s VSphere customers to initiate workloads on the IBM SoftLayer cloud infrastructure.
With such partnerships, VMware is placing itself well to benefit from the increasing adoption of cloud-based solutions. Per a Gartner report, global spending on cloud technology is expected to increase 25% annually over the next few years, which will result in higher demand for virtualization capabilities.
Currently, VMware has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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