Chief executive Raghu Raghuram told Reuters that newly independent VMware Inc. will pursue deeper deals with cloud computing providers and consider “large-scale” acquisitions that could help the company grow.
VMware on Monday completed its spinout from Dell Technologies Inc., which owned 81% of Palo Alto, California-based software firm, to become a separate publicly traded company worth about $64 billion.
Founded in 1998, VMware led a paradigm shift in how large companies used their data centers with technology, allowing data center owners to turn physical computers into “virtual” machines that were designed to get more work done. Could be scaled up or down quickly for the task at hand. Done. VMware became a mainstay in corporate data centers.
But as large companies begin to move computing work to cloud providers like Amazon.com’s Amazon Web Services, some analysts predicted that VMware’s usefulness would decline.
Instead, many large businesses are opting to use a combination of their own data centers and one or more cloud providers, which in turn has led many cloud providers to partner with VMware for better access to their customer base. has prompted.
Raghuram said that now that VMware is no longer under Dell’s umbrella, it wants to aggressively pursue those deals.
“It really allows us to go out and be the Switzerland of the industry,” he said.
VMware will also look to use its shares as currency to buy other companies to add technologies to their offerings.
“We are no longer a controlling entity. This allows us to use equity to conduct large-scale transactions down the road,” he said. “Small, hot startups or reasonably priced large companies – it gives us access to the full spectrum.”
Under the spinout, Dell and other shareholders will receive a special dividend of about $27.40 per share, or about $11.5 billion, which Dell said it plans to use to help pay down debt.
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