VMware

VMware is an American enterprise software brand that pioneered commercial virtualization for the x86 architecture and became one of the most influential companies in modern data-center computing. It was founded in 1998 by Stanford computer science professor Mendel Rosenblum, technology executive Diane Greene, Stanford researchers Edouard Bugnion and Scott Devine, and Edward Wang. The company emerged from research into virtualizing computer architectures that had traditionally been considered difficult to virtualize, particularly the x86 instruction set used by mainstream personal computers and servers. VMware initially focused on desktop virtualization. Its first commercial product, VMware Workstation, released in 1999, allowed developers and quality-assurance teams to run multiple operating systems simultaneously on one physical computer. This made software testing more flexible and helped establish the company’s reputation for making virtual machines portable and practical. VMware then entered the server market in 2001 with GSX Server, a hosted hypervisor, and ESX Server, a bare-metal hypervisor that ran directly on server hardware. ESX addressed a major data-center problem: physical servers were often dedicated to individual applications and operated at low utilization. By consolidating workloads into virtual machines, companies could use hardware more efficiently and reduce infrastructure, power, cooling, and space requirements. The company expanded its platform with centralized management and availability features. VMware VirtualCenter, introduced in 2003 and later developed into vCenter Server, gave administrators a way to manage multiple hosts. vMotion enabled live migration of running virtual machines between compatible physical servers, allowing maintenance and workload balancing with little or no visible service interruption. Other important capabilities included virtual multiprocessor support, high availability, distributed resource management, software-defined networking, and virtual storage. EMC acquired VMware in 2004 for $625 million. VMware subsequently became publicly traded in 2007 while remaining majority-controlled by EMC. During the EMC period it broadened its portfolio beyond the hypervisor, adding networking, security, storage, desktop management, cloud management, and application-platform technologies. Its relationship with Cisco produced integrations such as the Nexus 1000V virtual switch. VMware also introduced Cloud Foundry and pursued infrastructure-as-a-service through vCloud Hybrid Service, later renamed vCloud Air. Some developer-focused technologies were moved into Pivotal Software during the 2013 corporate separation. VMware became part of the Dell Technologies structure after Dell acquired EMC. In 2021, Dell completed a spin-off of its VMware stake, restoring VMware’s status as an independent public company while preserving a commercial relationship between the two businesses. Pat Gelsinger, who had led VMware through much of this period, left in 2021 to become Intel’s chief executive. Raghu Raghuram became VMware’s chief executive later that year. Broadcom announced an agreement to acquire VMware in 2022. The transaction closed on November 22, 2023, in a cash-and-stock deal reported at approximately $69 billion including assumed debt. VMware became part of Broadcom’s software operations and its shares ceased trading as an independent public company. Broadcom reorganized the business around VMware Cloud Foundation, Tanzu, Software-Defined Edge, and Application Networking and Security. The integration included substantial workforce reductions, a shift toward a smaller set of strategic offerings, and the discontinuation of perpetual-license availability for several major products in favor of subscription and term-based models. Broadcom subsequently sold VMware’s End-User Computing division to KKR. That business was renamed Omnissa and included the former VMware Horizon and Workspace ONE p…

VMware’s technical origins lie in Stanford research led by Mendel Rosenblum. The research showed that x86 systems, despite containing instructions that complicated classical virtualization, could be virtualized by combining direct execution with dynamic binary translation. VMware was established in 1998 and operated quietly during its first year before making its public debut at the DEMO conference in February 1999. The company’s first product, VMware Workstation, appeared in May 1999. It targeted developers and testers who needed to operate several guest operating systems on a single desktop. VMware’s approach presented standardized virtual hardware to guest systems, making virtual machines easier to copy, pause, resume, and move between compatible computers. In 2001, VMware entered enterprise servers with GSX Server and ESX Server. ESX was particularly significant because it ran directly on server hardware rather than depending on a conventional host operating system. This enabled organizations to consolidate multiple workloads onto fewer physical machines. In 2003, VMware added VirtualCenter for centralized administration, vMotion for live workload migration, and Virtual SMP. These capabilities helped establish virtualization as a core data-center operating model rather than merely a development convenience. Support for 64-bit guest systems followed in 2004. EMC acquired VMware in 2004. VMware conducted an initial public offering in 2007, although EMC retained control. In 2008, Diane Greene was replaced as chief executive by Paul Maritz, and co-founder Mendel Rosenblum later resigned as chief scientist. VMware also developed closer ties with Cisco, including work on virtual networking. During the early 2010s the company expanded into cloud management and application platforms. It launched Cloud Foundry in 2011, introduced vCloud Hybrid Service in 2013, and transferred many developer-oriented assets into Pivotal Software during the Pivotal spin-off. VMware became associated with Dell after Dell acquired EMC. The period included organizational restructuring, executive departures, and changes to the desktop virtualization development organization. VMware sold vCloud Air to OVH in 2017. Dell later spun off its VMware stake in 2021, leaving VMware an independent public company. Pat Gelsinger departed for Intel, first prompting an interim period under CFO Zane Rowe and then the appointment of Raghu Raghuram as CEO. Broadcom announced its proposed acquisition in May 2022. Regulatory review extended the process, including scrutiny by UK authorities and conditions associated with approval in China. The acquisition closed on November 22, 2023. Broadcom reorganized VMware, moved its headquarters to VMware’s Palo Alto campus, reduced the workforce, and concentrated the portfolio into several strategic divisions. It also moved key offerings from perpetual licensing toward subscription-based commercial models. The post-acquisition business was further reshaped by the sale of End-User Computing to KKR. The separated business became Omnissa and retained products derived from VMware Horizon and Workspace ONE. VMware continued to market core infrastructure products such as vSphere, vSAN, NSX, Tanzu, and Cloud Foundation under Broadcom’s ownership, while its desktop products received new personal- and commercial-use pricing policies.

1. 2024End-User Computing becomes Omnissa

   KKR acquires VMware’s End-User Computing division and establishes the Omnissa brand.

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2. 2023Broadcom acquisition closes

   Broadcom completes its acquisition of VMware, ending VMware’s independent public-company era.

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3. 2023Perpetual-license availability ends

   VMware moves major infrastructure offerings toward subscription-based licensing.

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4. 2021VMware becomes independent from Dell

   Dell completes the spin-off of its remaining VMware stake.

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5. 2013Pivotal spin-off announced

   Several application and developer technologies are transferred into the Pivotal Software business.

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6. 2011Cloud Foundry launches

   VMware releases an open-source platform-as-a-service project and hosted service.

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7. 2007Initial public offering

   VMware sells a minority stake to public investors while EMC remains its controlling shareholder.

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8. 2004EMC acquisition closes

   EMC acquires VMware for $625 million in cash.

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9. 2003VirtualCenter and vMotion introduced

   Centralized management and live migration capabilities expand VMware’s enterprise platform.

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10. 2001Entry into server virtualization

    VMware introduces GSX Server and ESX Server, bringing hosted and bare-metal virtualization to enterprise data centers.

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11. 1999VMware Workstation launches

    The company releases its first commercial product for running multiple operating systems on one desktop computer.

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12. 1998VMware is founded

    VMware is established by a group of Stanford researchers and technology executives to commercialize x86 virtualization.

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Enterprise-grade virtualization, private-cloud, hybrid-cloud, networking, storage, and application infrastructure platform.

• VMware WorkstationDesktop virtualization1999

  VMware Workstation is a hosted desktop hypervisor for Windows and Linux environments. It lets users create and operate multiple virtual machines on one physical computer, making it useful for software development, testing, demonstrations, training, and running alternative operating systems. The product became VMware’s first major commercial offering and helped prove that x86 virtualization could be practical outside mainframe environments.

• VMware ESXiServer virtualization2001

  ESXi is VMware’s bare-metal type-1 hypervisor. It runs directly on server hardware and hosts virtual machines containing operating systems and applications. ESXi became the foundation of VMware vSphere and enterprise server consolidation, supporting centralized administration, high availability, workload migration, and resource management across data-center hosts.

• VMware vSphereVirtualization platform

  vSphere is VMware’s enterprise virtualization platform built around ESXi and vCenter Server. It provides the operational layer for creating, managing, securing, and moving virtual machines across server clusters. Its capabilities have traditionally included live migration, high availability, resource scheduling, lifecycle management, and integration with virtual networking and storage.

• VMware vCenter ServerCloud and virtualization management2003

  vCenter Server centrally manages ESXi hosts, clusters, virtual machines, policies, and data-center operations. It provides the control plane through which administrators coordinate features such as vMotion, resource allocation, high availability, permissions, and infrastructure lifecycle processes.

• VMware NSXSoftware-defined networking and security

  NSX is VMware’s software-defined networking and security family. It abstracts network functions from physical hardware and supports virtual networks, micro-segmentation, firewalling, traffic control, and security policies across data centers and cloud environments. It extends VMware’s virtualization model from compute resources into networking and security operations.

• VMware vSANSoftware-defined storage

  vSAN pools storage devices installed in compatible server clusters and presents them as shared policy-driven storage for virtual machines. It is designed to integrate closely with vSphere, allowing organizations to build hyperconverged infrastructure in which compute, virtualization, and storage management are coordinated through a common platform.

• VMware Cloud FoundationPrivate and hybrid cloud infrastructure

  VMware Cloud Foundation combines core VMware compute, networking, storage, management, and security technologies into an integrated private-cloud and hybrid-cloud stack. It is intended for organizations that want a standardized operating model across on-premises infrastructure and selected public-cloud environments.

• VMware TanzuApplication platform

  Tanzu is VMware’s application and container-management portfolio. It supports organizations modernizing applications, operating Kubernetes environments, and connecting developer workflows with enterprise infrastructure. Tanzu represents VMware’s effort to extend beyond traditional virtual machines toward cloud-native application delivery.

• VMware HorizonDesktop and application virtualization

  Horizon provided virtual desktop and application delivery capabilities for enterprise users. The product supported centralized management and remote access to desktop environments and applications. VMware’s End-User Computing division, including Horizon, was separated and rebranded as Omnissa after its sale to KKR.

• VMware Workspace ONEUnified endpoint management

  Workspace ONE was VMware’s digital workspace and endpoint-management suite, combining device administration, application access, identity, and security controls. It was part of the End-User Computing division sold to KKR and subsequently operated under the Omnissa brand.

• 2022VMware and McLaren Racing partnership

  Global

  VMware partnered with McLaren Racing in Formula One to associate its cloud, networking, and workplace technologies with a global technology and performance-sport platform.

  Outcome. Partnership announced; longer-term campaign outcomes are not specified in the supplied reference material.

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• 2023Complete Broadcom acquisitionM&A

  Broadcom pursued VMware to expand its enterprise software portfolio and establish a larger infrastructure-software business.

  What changed. Broadcom completed the cash-and-stock acquisition on November 22, 2023, reorganizing VMware around several strategic software divisions.

  Aftermath. VMware ceased to be an independent listed company, underwent workforce reductions, changed its licensing model, and transferred End-User Computing to KKR.

  Transaction value. $69 billion including assumed debt (At closing on November 22, 2023)

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• 2023Move major products from perpetual licenses to subscriptionsPrice change

  Following the Broadcom acquisition, VMware consolidated its commercial model around recurring and term-based offerings.

  What changed. VMware ended the availability of new perpetual licenses for products including vSphere and Cloud Foundation.

  Aftermath. Customers were directed toward subscription-based product packages, changing the procurement and renewal model for core infrastructure software.

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• 2017Sell vCloud Air to OVHM&A

  VMware reassessed its position in infrastructure-as-a-service as competition from large public-cloud providers intensified.

  What changed. VMware sold the vCloud Air business to French cloud provider OVH.

  Aftermath. VMware continued emphasizing hybrid-cloud software and partnerships rather than operating the same standalone public-cloud service.

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• 2013Separate application and developer technologies into PivotalStrategy

  VMware and EMC sought to separate application-development and platform technologies from VMware’s core infrastructure business.

  What changed. Products and projects including Spring, Cloud Foundry, RabbitMQ, GemFire, and related technologies were transferred into Pivotal Software.

  Aftermath. The move sharpened VMware’s focus on infrastructure virtualization while establishing Pivotal as a separate application-platform company.

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• 2015ESXi open-source licensing litigationControversy

  Christoph Hellwig, with support from the Software Freedom Conservancy, pursued litigation in Germany alleging that VMware ESXi incorporated GPLv2-covered Linux code in a way that violated related copyright and source-disclosure obligations. VMware denied that ESXi was a derivative work of the Linux kernel and maintained that it had met its obligations for GPL-covered components. The case was dismissed in 2016 and an appeal was dismissed in 2019 on procedural grounds.

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• 2024Broadcom sells VMware End-User Computing division to KKR

  KKR agreed to acquire VMware’s End-User Computing division, which was later rebranded Omnissa and included Horizon and Workspace ONE.

  M&A
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• 2024VMware makes Workstation Pro and Fusion Pro free for personal use

  VMware announced free personal use of its Workstation Pro and Fusion Pro desktop virtualization products, with commercial terms initially remaining in place.

  Product launchPricing
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• 2024VMware announces broader free availability for Workstation Pro and Fusion Pro

  VMware later announced that commercial use of Workstation Pro and Fusion Pro would also be free.

  Pricing
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• 2023Broadcom completes acquisition of VMware

  Broadcom completed its acquisition of VMware on November 22, 2023, ending VMware’s independent public-company status.

  M&A
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• 2023VMware ends availability of perpetual licenses

  VMware announced that products including vSphere and Cloud Foundation would no longer be offered as new perpetual-license purchases.

  Pricing
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• 2023VMware ordered to pay damages in Densify patent case

  A court ordered VMware to pay $84.5 million in a patent-infringement dispute involving Canadian software company Densify.

  Lawsuit
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• 2022Broadcom announces agreement to acquire VMware

  Broadcom announced a proposed cash-and-stock acquisition of VMware, with the transaction subject to regulatory review.

  M&ARegulation
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• 2022UK competition authorities investigate Broadcom acquisition

  The UK Competition and Markets Authority opened an investigation into whether the proposed acquisition could substantially reduce competition.

  Regulation
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• 2021Dell completes spin-off of VMware stake

  Dell distributed its remaining VMware interest to shareholders, making VMware independent while the companies continued commercial cooperation.

  M&A
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• 2021Raghu Raghuram appointed VMware chief executive

  Raghu Raghuram was selected to succeed interim CEO Zane Rowe after Pat Gelsinger left for Intel.

  Leadership change
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• 2019German court litigation over ESXi licensing claim is dismissed

  A German appeal involving allegations that ESXi infringed GPL-related rights was dismissed on procedural grounds after an earlier dismissal in 2016.

  Lawsuit
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• 2016VMware restructures ahead of Dell and EMC integration

  VMware announced a restructuring expected to eliminate approximately 800 positions during preparations for Dell’s acquisition of EMC.

  Leadership changeOther
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• 2013VMware announces Pivotal corporate spin-off

  Developer- and application-oriented assets, including Cloud Foundry and Spring-related technologies, were transferred into the Pivotal Software spin-off.

  M&A
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• 2013VMware launches vCloud Hybrid Service

  VMware introduced an infrastructure-as-a-service offering designed to extend customers’ existing vSphere environments into hosted cloud infrastructure.

  Product launch
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• 2011VMware launches Cloud Foundry

  VMware introduced an open-source platform-as-a-service project and a hosted service supporting several programming languages and databases.

  Product launch
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• 2008Diane Greene replaced as chief executive

  VMware replaced co-founder Diane Greene with Paul Maritz amid concerns about financial performance and strategic direction.

  Leadership change
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• 2008VMware and Cisco announce virtualization collaboration

  The companies announced a collaboration that contributed to products including the Cisco Nexus 1000V virtual switch.

  Other
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• 2007VMware completes initial public offering

  VMware sold a minority stake to public investors while remaining controlled by EMC.

  Other
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• 2003EMC agrees to acquire VMware

  EMC announced an agreement to acquire VMware, a transaction completed in 2004 for $625 million in cash.

  M&A
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1. VMware
2. VMware official website