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Next Phase of AWS-VMware Venture Could Be Data Center Software

Amazon Web Services is discussing developing software for corporate data centers with its one-time arch enemy, VMware, said a person with knowledge of the plans. The deal, if struck, would shake up the enterprise software industry by expanding AWS’s customer base significantly and help the Michael Dell-controlled VMware retain its customers.

If the two companies proceed, it would be the first large-scale effort by AWS to develop software for corporate data centers. AWS has become a big business over the past decade by persuading a myriad of corporate customers to use its “public cloud” servers for their computing needs. But most large companies prefer to keep at least some of their data in their own data centers, in what’s known as the private cloud. VMware, maker of software that multiples the capacity of servers, among other products, is the dominant provider of software to those data centers.

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“Amazon has been trying to win VMware's enterprise customers for years. The only thing that has changed is that VMware is now helping it to do so.”