Amazon.com, Inc. (NASDAQ:AMZN) and VMWare, Inc. (NYSE:VMW) have announced a deal to combine their cloud capabilities.
VMWare was battling Amazon’s cloud computing business for several years, but the company has finally changed its tune by deciding to join forces with the e-commerce retailer.
The new software of the tech company will work better on Amazon’s cloud despite the fact that VMWare sells its own cloud services and software that are in direct competition with Amazon.
The company’s new cloud is called the “vCloud Air,” and it includes a network of thousands of data center and hosting providers that offer the cloud platform.
The offering allows you to select one of many service providers that you can use alongside certain apps and data in your corporate data centers.
“I find it really hard to believe that we cannot collectively beat a company that sells books,” VMWare vice president Carl Eschenbach said in the past, commenting on both companies’ cloud capabilities.
Amazon has managed to take over a large portion of the computer industry’s cloud business, despite the criticism and doubts from the naysayers.
VMWare became a subsidiary of Dell Technologies Inc (NYSE:DVMT) in September as Dell completed the acquisition of the tech provider’s parent company. Some of VMWare’s shares are publicly owned, while Dell is a private company.
AMZN stock is up 1.4% Wednesday. VMW shares rose 2.1% Wednesday.
