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Company Brief
VMware

by Faulkner Staff

Copyright 2022, Faulkner Information Services. All
Rights Reserved.

Docid: 00021991

Publication Date: 2210

Report Type: VENDOR

Preview

VMware – which fell under the Dell umbrella following the computer
maker’s 2016 acquisition of EMC – provides cloud-based computing services
to businesses of all sizes and is considered a leader in virtualization.
Through the virtualization of infrastructure, VMware helps IT operations
to deliver services from any location at any time. VMware has over a half
million customers and boasts annual revenues of $12.85 billion (fiscal
2022). In May 2022, it was announced that Broadcom would purchase VMware
in a $61 billion dollar deal that also assumes VMware debt. This brief
reviews key information regarding VMware, from its history and the
executives to its main products and latest business news.

Report Contents:

• Fast Facts
• History
• Key Executives
• Major Products
• Major Competitors
• Recent Activity

Fast Facts

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Name: VMware 
Headquarters
3401 Hillview Ave.
Palo Alto, CA 94304
Phone: (877) 486-9273
Fax: (650) 427-5001
Web: http://www.vmware.com/
Type of Vendor: Virtualization Solutions Provider
Founded: 1998
Service Areas: Global
Stock Symbol: VMW (NYSE)

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History

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VMware is the global leader in “virtualization” solutions from the
desktop to the data center – bringing cloud computing to businesses of all
sizes. Virtualization dramatically improves the efficiency and
availability of information technology (IT) resources and enables
enterprises to respond to escalating IT needs without necessarily adding
expensive and hard-to-maintain equipment. The company was founded in 1998
and officially launched in 1999, the same year that it released its first
product: VMware Workstation 1.0 for Linux and Windows. The company entered
the server market in 2001 with the release of GSX Server 1.0 and ESX
Server 1.0. In 2004, EMC acquired VMware for $623 million, then three
years later released 10 percent of its shares to the NYSE in an IPO.

Following Dell’s 2016 $67 billion acquisition of EMC, EMC’s investors
were also given approximately $9.10 per share in tracking stock linked to
a portion of EMC’s economic interest in VMware. Despite this transaction,
VMware remained virtually unchanged as an independent, publicly-traded
company.

In October 2021, Dell announced that it would complete a sell-off of its
VMware stock, paying a special dividend of $11.5 billion to its current
shareholders while Dell shareholders will receive VMware stock. Under this
arrangement, Dell CEO Michael Dell became VMware’s single largest
shareholder, holding 41 percent of the stock.¹ As of November
1, VMware became an independent company for the first time since it was
acquired by EMC in 2004.

That independence did not last long as Broadcom announced that it will
acquire all outstanding shares of VMware in a cash-and-stock transaction
that values VMware at approximately $61 billion. In addition, Broadcom
will assume $8 billion of VMware net debt. Following the closing of the
transaction, which is expected to be completed in Broadcom’s 2023 fiscal
year, the Broadcom Software Group will rebrand and operate as VMware,
incorporating Broadcom’s existing infrastructure and security software
solutions as part of an expanded VMware portfolio. As Bloomberg notes,
Broadcom is one of the most valuable companies in the chip industry,
selling components for “everything from the iPhone to industrial
equipment. But it’s seeing some of its biggest growth from data centers
… and bulking up on software helps it further serve that market.”²

Key Executives

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Top executives include:

• Chief Executive Officer: Raghu Raghuram
• President: Sumit Dhawan
• Executive Vice President and Chief Financial Officer:
  Zane Rowe
• Executive Vice President, Worldwide Sales:
  Jean-Pierre Brulard
• Executive Vice President and General Counsel: Amy
  Fliegelman Olli
• Executive Vice President and Chief People Officer:
  Betsy Sutter
• Chief Technology Officer: Kit Colbert
• Senior Vice President and Chief Information Officer:
  Jason Conyard
• Senior Vice President and Chief Operating Officer:
  Mike Hayes
• Senior Vice President and General Manager, Americas:
  Dan Zugelder
• Senior Vice President and Chief Marketing Officer:
  Laura Heisman
• Senior Vice President and Chief Communications Officer:
  Joan Stone
• Vice President and Chief Security Officer: Alex
  Tosheff
• Vice President and Chief Data Officer: Wendy
  Batchelder
• Chief Customer Experience Officer: John Sabino

Major Products

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VMware’s extensive product portfolio is based on emerging technology in
fields such as Big Data, HPC (high-performance computing), Blockchain, and
learning platform technology. This lineup of products is detailed in Table
1.

Major Competitors

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VMware’s competition includes providers of public cloud-based
infrastructure and SaaS (Software-as-a-Service) offerings such as Citrix,
Amazon Web Services, and Microsoft; large, diversified enterprise software
and hardware companies, including Oracle and Microsoft; firms that offer
competing platforms that are based on open-source technology, including
HPE, IBM, and Cisco; various industry alliances; and partners and members
of its developer and technology partner ecosystem.

Amazon: http://www.amazon.com/ 
Citrix: http://www.citrix.com/
IBM: http://www.ibm.com/ 
Oracle: http://www.oracle.com/
Microsoft: http://www.microsoft.com/

Recent Activity

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Recent activity of note includes:

• September 2022 – Reaches a settlement with the US
  Securities and Exchange Commission to resolve a previously disclosed
  investigation related to the company’s backlog disclosures in public
  filings for its 2019 and 2020 fiscal years. Under the settlement, VMware
  agrees to pay a civil monetary penalty of $8 million without admitting
  or denying the SEC’s findings, which relate to the company’s
  disclosures.
• August 2022 – Promotes chief digital transformation
  officer Mike Hayes to chief operating officer.
• May 2022 – Broadcom and VMware announce an agreement
  under which Broadcom will acquire all outstanding shares of VMware in a
  cash-and-stock transaction that values VMware at approximately $61
  billion. In addition, Broadcom will assume $8 billion of VMware net
  debt. Following the closing of the transaction, the Broadcom Software
  Group will rebrand and operate as VMware, incorporating Broadcom’s
  existing infrastructure and security software solutions as part of an
  expanded VMware portfolio. The transaction is expected to be completed
  in Broadcom’s fiscal year 2023.
• February 2022 – Appoints Laura Heisman as chief
  marketing officer and Sylvain Cazard to the role of general manager Asia
  Pacific and Japan.
• November 2021 – Completes its spinoff from Dell
  Technologies.

References

¹ Haranas, Mark. “Dell-VMware Spin-Off Set for Nov. 1, Stock
Dividend Approved.” CRN. October 19, 2021.

² Bass, Dina, and Liana Baker. “Broadcom to Buy VMware for
$61 Billion in Record Chip Deal.” Bloomberg. May 26, 2022.

 

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