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Despite layoffs, VMware has a big bet on this one cloud innovation

Brandon Butler | Jan. 28, 2016
CEO Gelsinger hints that how network virtualization will be a key technology for the company.

Peter Christy, research director for networking at 451 Research, says extending NSX to other public clouds is a natural, logical step for the company. Gelsinger seems to have realized that spending billions of dollars to compete head on with AWS is not viable, so instead he’s hoping to focus on management tools and network software. On the plus side, VMware has a massive enterprise customer base that it can sell to. And Christy says NSX could be appealing to network engineers who are tasked with creating many new networks for application developers.

The trouble is Microsoft is looking at a similar strategy of enabling the hybrid cloud with the addition of Azure Stack, which is a private cloud mirror of its IaaS public cloud.


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