VMware, Inc. (“VMware”) pioneered the development and application
of virtualization technologies with x86 server-based computing, separating application
software from the underlying hardware. Information technology (“IT”)
driven innovation is disrupting markets and industries. Technologies emerge
faster than organizations can absorb, creating increasingly complex environments.
To take on this challenge, businesses need a flexible and secure digital foundation.
We provide compute, cloud, mobility, networking and security infrastructure
software to businesses that provides a flexible digital foundation for the applications
that empower businesses to serve their customers globally.
We continue to broaden our product and solution offerings beyond compute virtualization
to include offerings that allow organizations to manage IT resources across
private clouds and complex multi-cloud, multi-device environments by leveraging
synergies across three categories: Software-Defined Data Center (“SDDC”),
Hybrid Cloud Computing and End-User Computing (“EUC”). Our portfolio
supports and addresses the four key IT priorities of our customers: modernizing
data centers, integrating public clouds, empowering digital workspaces and transforming
security. We create solutions that enable the digital transformation our customers
need as they ready their applications, infrastructure and devices for their
future business needs.
We incorporated in Delaware in 1998, were acquired by EMC Corporation (“EMC”)
in 2004 and conducted our initial public offering of our Class A common stock
in August 2007. Effective September 7, 2016, Dell Technologies Inc. (“Dell”)
acquired EMC. As a result, EMC became a wholly-owned subsidiary of Dell, and
VMware became an indirectly-held, majority-owned subsidiary of Dell. We are
considered a “controlled company” under the rules of the New York
Stock Exchange. As of February 2, 2018, Dell controlled approximately 81.9%
of our outstanding common stock, including 31 million shares of our Class A
common stock and all of our Class B common stock.
We were the first company to articulate a vision for SDDC, whereby increasingly
infrastructure is virtualized and delivered as a service, enabling data center
management to be entirely automated by software, from one unified platform.
Traditional data centers are collections of technology silos where each application
type has its own vertical stack consisting of a CPU and operating system, storage
pool, networking and security, and management systems. Over time, costs to maintain
the data center infrastructure have been increasing because the data center
environment has become more heterogeneous, leading to higher complexity. The
increasing complexity of the data center demands constantly increasing resources
to manage and maintain the IT infrastructure. SDDC is designed to transform
and modernize the data center into an on-demand service that addresses application
requirements by abstracting, pooling and automating the services that are required
from the underlying hardware. SDDC dramatically simplifies data center operations
and lower costs.
vSphere, our flagship data center platform, provides the fundamental compute
layer for VMware environments. A “hypervisor” is a layer of software
that resides between the operating system and system hardware to enable compute
virtualization. Users deploy the vSphere hypervisor when they purchase vSphere,
Cloud Foundation or suite versions that include vSphere, such as VMware vCloud
Suite and vSphere with Operations Management (“vSOM”).
We have continued to develop vSphere solutions to be compatible with new technologies
and tools utilized by software developers and enterprises. During fiscal 2016,
we introduced our VMware vSphere Integrated Containers solution that allows
customers to deploy containerized and traditional applications side-by-side
on a common platform, without re-architecting their existing infrastructure.
During fiscal 2018, we expanded our container solutions by announcing Pivotal
Container Services (“PKS”), a new jointly developed, marketed, sold
and supported Kubernetes container solution with Pivotal Software, Inc. (“Pivotal”),
an indirect majority-owned subsidiary of Dell, and in which VMware has an ownership
interest.
vSphere, our flagship data center platform, provides the fundamental compute
layer for VMware environments. A “hypervisor” is a layer of software
that resides between the operating system and system hardware to enable compute
virtualization. Users deploy the vSphere hypervisor when they purchase vSphere,
Cloud Foundation or suite versions that include vSphere, such as VMware vCloud
Suite and vSphere with Operations Management (“vSOM”).
We have continued to develop vSphere solutions to be compatible with new technologies
and tools utilized by software developers and enterprises. During fiscal 2016,
we introduced our VMware vSphere Integrated Containers solution that allows
customers to deploy containerized and traditional applications side-by-side
on a common platform, without re-architecting their existing infrastructure.
During fiscal 2018, we expanded our container solutions by announcing Pivotal
Container Services (“PKS”), a new jointly developed, marketed, sold
and supported Kubernetes container solution with Pivotal Software, Inc. (“Pivotal”),
an indirect majority-owned subsidiary of Dell, and in which VMware has an ownership
interest.
We provide many storage and availability products to offer cost-effective,
holistic data storage and protection options to all applications running on
the vSphere platform. These products serve as hyper-converged infrastructure
solutions designed to enable customers to deploy a broad range of hardware solutions.
Key hyper-converged infrastructure solutions in this area include:
VMware vSAN (“vSAN”)—clusters server disks to create radically
simple, shared storage designed for virtual machines.
VxRail—a fully integrated and pre-configured Dell EMC Appliance powered
by vSAN and vSphere software that extends the VMware environment.
vSphere Replication—provides a cost-efficient and simple way to manage
replication.
vCenter Site Recovery Manager—leverages vSphere and vSphere Replication
to protect applications against site failures and to streamline planned migrations.
We experienced growth in both customer count and sales of our vSAN offerings
during fiscal 2018.
Network and Security
Our network virtualization solution, VMware NSX (“NSX”), abstracts
physical networks and greatly simplifies the provisioning and consumption of
networking resources. In addition, our security services are built-in, do not
require purpose-built hardware and can scale with the network. AppDefense and
Network Insight further broaden our network and security portfolio. AppDefense
is a data center endpoint security product that protects applications running
in virtualized environments. Network Insight delivers intelligent operations
for software defined networking and security across virtual, physical and multi-cloud
environments.
During the fourth quarter of fiscal 2018, we acquired Velocloud Networks, Inc.
(“Velocloud”), the market leader in cloud-delivered SD-WAN that
enables enterprises and service providers to deploy flexible and secure WAN
connectivity.
VMware networking and security services enable our customers to connect, secure
and operate their network consistently from the data center to the cloud and
to the edges of their network. This includes providing networking and security
capabilities to virtual machines, containers and public cloud workloads. NSX
integrates with many automation, security and container solutions and is an
integral part of our key offerings including VMware Cloud Foundation, VMware
Cloud on AWS and PKS.
Cloud Management and Automation
Our cloud management and automation products move beyond core compute infrastructure
to manage and automate overarching IT processes involved in provisioning IT
services and resources to users from initial infrastructure deployment to retirement.
These IT processes manage virtualized and non-virtualized infrastructure resources
and private and public cloud infrastructures, including hybrid cloud services.
Examples of products in the cloud management and automation product portfolio
include:
vRealize Operations—provides performance, capacity and configuration management
for virtual or physical infrastructure.
vRealize Automation—enables customers to rapidly deploy and provision
cloud services.
vRealize Business—provides transparency and control over the costs and
quality of IT services.
We acquired Wavefront, Inc. (“Wavefront”) during fiscal 2018 to
enhance our cloud management and Software-as-a-Service (“SaaS”)
portfolio. Wavefront by VMware is a SaaS-based metrics monitoring and analytics
platform for modern cloud-native applications.
Software-Defined Data Center Suites
Our SDDC products are available separately or our compute and management and
automation products may be acquired as part of a broader offering. The VMware
vCloud Suite, vSOM and VMware vRealize Suite are packaged solutions for building
and managing a complete cloud infrastructure optimized for use with the vSphere
platform:
VMware vCloud Suite—an integrated offering that brings together our vSphere
hypervisor and our vRealize Suite multi-vendor hybrid cloud management platform.
vSOM—allows users to optimize capacity and monitor the workload performance
of their vSphere environments.
VMware vRealize Suite—an enterprise-ready cloud management platform that
enables customers to manage heterogeneous, hybrid cloud environments.
Software-Defined Data Center Platform—On Premise
During fiscal 2016, we introduced VMware Cloud Foundation, a unified platform
that brings together our compute, storage and networking technologies into a
natively integrated stack that delivers enterprise-ready cloud infrastructure
for private and public clouds. The combined offering includes lifecycle management
capabilities to span the full stack. SDDC products can also be delivered through
our VMware vCloud NFV, which is a fully integrated, modular, multi-tenant network
functions virtualization (“NFV”) platform. It provides the compute,
storage, networking and operations management and service assurance capabilities
to enable operators to provide virtualized network services and drive NFV deployments
with an architecture that will support 5G and Internet of Things (“IoT”)
services in the future.
During fiscal 2018, we introduced VMware Pulse IoT Center, an IoT device management
and monitoring solution that helps both IT and Operational Technology (“OT”)
organizations to onboard, manage, monitor and secure their IoT use cases from
the edge to the cloud. This new solution has been built to meet the needs of
IoT for both IT and OT teams, while supporting a broad range of edge systems
and their connected devices.
Hybrid Cloud Computing
Our cross-cloud architecture enables consistent deployment models, security
policies, visibility and governance for all applications, running on-premises
and off-premises, regardless of the underlying cloud, hardware platform or hypervisor.
It builds on our private and hybrid cloud capabilities by offering customers
the freedom to innovate in multiple clouds, and is delivered through Cloud Foundation,
the VMware vRealize cloud management platform and a new set of VMware Cloud
Services that we are developing. Our overarching cloud strategy contains three
key components: (i) continue to expand beyond compute virtualization in the
private cloud, (ii) extend the private cloud into the public cloud and (iii)
connect and secure endpoints across a range of public clouds. Our cloud strategy
is designed to provide organizations with solutions that work across all clouds
and all devices.
VMware Cloud Provider Program Services
We currently enable our customers to utilize off-premises, vSphere-based hybrid
cloud computing capacity through our VMware Cloud Provider Program (“VCPP”)
offering (previously referred to as VMware vCloud Air Network). Our VCPP offering,
a key component of our strategic priority to integrate with public clouds, is
a global ecosystem of over 4,000 cloud providers in more than 100 countries
providing VMware-based cloud services. Our VCPP offering is directed at hosting
and cloud computing vendors, enabling organizations to choose between running
applications in virtual machines on their own private clouds inside their data
center or on public clouds hosted by a service provider.
Hybrid VMware Cloud Foundation
VMware Cloud Foundation can be used for on-premises private clouds and also
can be extended to hybrid cloud environments using VMware Cloud on AWS or VCPP.
VMware Cloud on AWS, which became available in fiscal 2018, is an on-demand
service that enables customers to run applications across vSphere-based cloud
environments and provides access to a broad range of AWS services. This hybrid
offering, a strategic alliance with AWS, integrates vSphere, vSAN and NSX along
with VMware vCenter management and is optimized to run on dedicated, elastic,
bare-metal AWS infrastructure. VMware Cloud on AWS is currently available in
certain geographies, and we expect to continue expanding into additional regions
in fiscal 2019.
VMware Cloud Services
VMware Cloud Services are new SaaS offerings that enable visibility into cloud
usage and costs, enhance consistent networking and security policies and automate
the deployment, management and migration of applications and data across vSphere
and non-vSphere private and public clouds. VMware Cloud Services include discovery
and analytics, compliance and security, networking and deployment and migration.
VMware Cloud Services enable our customers to run, manage, connect and secure
their applications across private and public clouds, including AWS, Azure, Google
Cloud Platform and IBM Cloud, as well as all devices in a common operating environment,
regardless whether the underlying infrastructure is VMware-based.
End-User Computing
Our EUC portfolio offers a digital workspace to enable our customers to securely
deliver access to applications and data for their end users from any device
of the user’s choice and from any location. Our EUC solutions are designed
to optimize simplicity and choice for end users, while providing security and
control to corporate IT organizations. IT organizations are able to enhance
their enterprise security for corporate applications, data and endpoints utilizing
our EUC solutions.
Our complete EUC solution consists of VMware Workspace ONE (“Workspace
ONE”), our digital workspace platform. Workspace ONE is an integrated
platform that securely delivers and manages any application, including legacy
applications, on any device by integrating access control, application management
and multi-platform endpoint management. Workspace ONE is powered by VMware AirWatch
(“AirWatch”), which delivers unified endpoint management, and VMware
Horizon (“Horizon”) application and desktop virtualization, tied
together with a common access control layer:
AirWatch—a unified endpoint management platform built to manage and secure
endpoints across all major operating systems from a single management console,
enabling deployment of native, web or remote applications through an application
catalog across every device with built-in single sign-on. It provides the core
foundation to support an increasingly mobile workforce and customer base, enabling
customers to take advantage of “bring your own device” initiatives.
Horizon—a virtual platform that provides a streamlined approach to delivering,
protecting and managing virtual desktops and applications from one digital workspace,
while containing costs and allowing end users to work anytime, anywhere and
across any device.
While AirWatch and Horizon are also offered separately, together this solution
provides customers with a complete digital workspace solution that combines
identity, mobile management, and application and desktop virtualization solutions.
These technologies leverage our SDDC solutions, allowing customers to extend
the value of virtualization and management from their data center to their devices.
While many of these technologies are in use today, they are often deployed in
silos across enterprise IT. Workspace ONE, which is offered as both an on-premises
installed platform or as-a-service, integrates these silos to streamline the
delivery of new applications and experiences. Workspace ONE continued to be
our primary growth driver within EUC during fiscal 2018.
As we continue to expand our virtual desktop offering, we plan to offer customers
the opportunity to run virtual desktops as-a-service through multiple environments
including the Azure platform.
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