Sign up to receive 5 free days of our daily summary for tech news.

Introducing our newly updated org charts. Browse our org charts on companies like Uber, Facebook, and Airbnb all in one place.

Read this article for free.

Already a subscriber? Log in here

Enterprise Amazon Google Markets

The Cloud Hanging Over VMWare

Before the public cloud, there were hypervisors, and VMware was nearly synonymous with the technology. Now VMware is facing multiple threats to its business.

VMware rose to prominence, and its eventual acquisition by storage giant EMC in 2004 for $625 million, by selling hypervisors that helped big companies make more efficient use of their data centers. Hypervisors let multiple “virtual” computers run on a single physical machine. So-called “virtualized data centers” functioned somewhat like small, private clouds.

Today, Amazon, Microsoft and Google are selling access to their the extremely large and efficient public clouds. Embraced initially by startups as a way to get to market without building their own data centers, public clouds are now luring mainstream businesses that still maintain private fleets of servers. That shift poses a long term threat to VMware's core business. Activist shareholders are now prodding EMC, which still owns about 80 percent of VMware, to spin off the company.  

Tony Scott, VMware’s chief information officer, has a unique view of the challenges because he both crafts corporate strategy with his fellow executives and runs VMware’s own IT operations. The peers he regularly chats with at other companies and industry gatherings also happen to make up VMware’s core customer base.

What Is The Information?

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting, stories, and exclusives you won't read anywhere else from the largest newsroom in tech.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Go deep into areas like crypto and VC diversity—or get real-time analysis of breaking news—via conference calls with our reporters and other experts.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, subscribers get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

Access the best reporting on the tech industry read by tens of thousands of global executives.

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Share with your team

Subscribers can unlock any article and share it with friends and co-workers through a special share link.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles


To Rebuild Trust, Facebook’s Zuckerberg Looked to Microsoft

By Nick Wingfield

Amazon Google Facebook Policy

10 Lawmakers Tech Should Watch

By Sarah Kuranda and Nick Wingfield

Enterprise Amazon Cloud

AWS’ Shift to Homegrown Networking Equipment Raises Questions for Juniper

By Kevin McLaughlin

Amazon Cloud

AWS Renewable Energy Efforts Hit Speed Bumps

By Priya Anand

"What VMware is trying to do is reduce the friction between what you can do on-premise in your own cloud and what you can do in the public cloud."