Microsoft and Dell Technologies’ VMware subsidiary launched a new service that lets VMware-based computing jobs run in the Azure cloud, something that hasn’t previously been possible without technical heavy lifting. This confirms our report from February and is the latest example of tech industry rivals teaming up to build software that links private data centers and public clouds.
For Microsoft, supporting VMware on Azure should lead to more business from companies looking to save money by running parts of applications in the public cloud. For VMware, it’s a chance to solve a pain point for customers today in the hope of getting them to buy additional products, such as management software, in the future.
Microsoft-VMware is different from VMware’s partnership with Amazon Web Services, announced in 2016, which required more custom-built software, as sources told us in February. But while VMware runs the risk of losing customers to the cloud providers over time, it is betting that the “hybrid” cloud trend isn’t going away anytime soon.