VMware May Spin Off 'Non-Core' Technology

The rumors about VMware spinning off Cloud Foundry, GemStone and SpringSource into an EMC-based subsidiary are back. If former VMware CEO Paul Martiz heads up the hypothetical organization, it may put VMware and EMC in a much stronger position to compete with rivals in the cloud and virtualization space.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  

The rumors about VMware Inc. spinning off all "non-core" VMware technologies into a separate company are back. Cloud Foundry, GemStone and SpringSource, which are all secondary foci for the virtualization company, are set to fall under the control of an EMC Corp.-owned subsidiary. By offloading less critical technologies to a separate stewardship, VMware hopes to focus all of its resources on VMware technology.

The official announcement will reportedly be made sometime next week, according to "familiar sources" quoted by GigaOm. The initial buzz about the spin off started in July, when Pat Gelsinger replaced outgoing CEO Paul Maritz . The platform-as-a-service division, Cloud Foundry, was growing and speculation arose that EMC may spin it into a separate company. Today, rumor has it that the former VMware CEO may play "a key role" in this hypothetical new company, although his position as CEO has not been confirmed.

Related articles

Superficially, VMware is shedding some pounds to get back to the basics (vSphere), but reports also seem to suggest that VMware has been unable to sell much more than its core product. With the extra technological responsibilities holding it down, a spin-off is seen as a smart move for both VMware and EMC, VMware's parent company.

With a renewed focus on the heart of what VMware does best, VMware will find itself a more agile company. This will make VMware more competitive in the growing cloud/virtualization marketplace , which is critical for its success as it goes up against rivals like Microsoft, Citrix, Amazon.com and more.

If Maritz does end up playing a major roll at the yet-unnamed spin-off, he is likely to apply the same growth and leadership strategy he used with VMware. This will strengthen EMC position in the virtualization and cloud space while fast-tracking the maturation of the tech within. With two strong pillars under the EMC empire, the corporate trio should be able to deliver a more focused market strategy for all its technologies, which may benefit cloud and virtualization across the entire IT industry.

At the time of this writing, VMware stock has rallied on the rumor, rising to just over $92 per share, a jump of more than 3 percent since the opening bell. Channelnomics sees this as a continuation of VMware's strong fundamentals which continue to drive the company forward.

  • Tweet  
  • LinkedIn  
  • Facebook  
  • Google plus  
  • Send to Kindle
  • Send to  
More on Channel Business
Rejected Link Request

Salesforce CEO: SAP rejected our partnership

Marc Benioff said he attempted to collaborate with competitor

hired-hire-join-appoint-appointed-rubber-stamp-rubberstamp

IBM appoints new Global Business Partners VP

Michele Stern tasked with bringing $5bn in revenue

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams

wires

HP to focus on wired, wireless to take market share from Cisco

Meg Whitman says there is opportunity to capture Cisco-dominated market

Visitor comments
Add comments
blog comments powered by Disqus
In-depth
newspapers-and-glasses

Channelnomics' top five stories of the week - 3 July 2015

Check out which articles grabbed the most attention this week

jessica-m-225x300

Editor's voice: The week's channel chatter - 3 July 2015

What's been happening this week on Channelnomics?

Microsoft Surface Hub

Microsoft going big with partners on Surface Hub launch

Partners report strong demand for the wall-mounted collaboration device, anticipate even more opportunities when application development program rolls out in September

communication1

Communication breakdown: Getting vendor marketing and partner sales on the same page

Channel players talk struggles, consequences and solutions to poor communication among vendor marketing teams and channel sales teams