Amazon knows how to make an enemy an ally. The company reported last week that will join with its Amazon Web Services (AWS) rival VMWare to develop software for corporate data centers, according to a report by The Information.
The news made shares of VMWare (VMW) increase its value by 2.5% last Tuesday and Amazon’s shares went up by 0.9%. For AWS, the partnership will make possible an expansion in its services and for VMWare it will make it easier to retain its clients, according to Jeremy C. Owens of Market Watch.
The object of the new collaboration is to develop a data center product for hybrid cloud users. Even though it is not clear what products will emerge, it is common knowledge that AWS is looking for something that will help it compete with Microsoft’s Azure Stack, a software designed to help companies divide their workloads between their own data centers and the cloud.
The trend, in which companies will very slowly embrace the cloud, was noted by Gartner. In its study about the Worldwide Public Cloud Services Market, it stated, “the overall global public cloud market is entering a period of stabilization.” That’s why the collaboration between two former rivals makes good business sense.
Marco Islas for TechFunnel.com