February 27, 2019
Microsoft and VMware are reportedly setting aside their differences to collaborate on hybrid cloud solutions to stave off challenges by Amazon Web Services
By Channelnomics Staff
The next big partnership in hybrid cloud computing is VMware teaming with Microsoft to create new solutions that provide businesses with new options other than working with Amazon Web Services. And, the collaboration might just be the catalyst to help Microsoft close the cloud market gap with AWS.
The Lowdown: VMware is already a big partner of Amazon Web Services, providing software to the cloud computing giant that enables one of its hybrid computing options. VMware and Microsoft are reportedly working on a similar relationship, in which VMware will supply virtualization software that will enable businesses to implement hybrid computing systems in the Microsoft Azure cloud.
The Details: Hybrid computing enables business to have seamless integration with public cloud resources while maintaining local operations and control in their own data centers. Just how Microsoft and VMware’s collaboration will lead to a new hybrid cloud service is unknown, as neither company is talking specifics. They’re only teasing the development of this new partnership.
The Impact: A Microsoft-VMware hybrid cloud computing partnership could unlock hundreds of thousands of new accounts to Microsoft Azure and tipping the cloud computing market share balance away from Amazon Web Services. Microsoft is trying to catch up to Amazon in the cloud market. While Microsoft’s cloud business grew 79 percent in 2018, Amazon expanded sales 45 percent last year. According to LogicMonitor, the current rate of growth will give Microsoft a 21 percent market share by the end of 2020 to Amazon Web Services 52 percent share.
Background: Amazon Web Services and VMware are long-time partners. AWS uses VMware virtualization technology to facilitate hybrid cloud computing instances. The partnership was a game-changer for Amazon by allowing it to port its AWS services into private data centers. However, Amazon — which hates dependencies on other companies — has a habit of competing and