Why VMware is spinning off Cloud Foundry and SpringSource
December 4, 2012
The decision by VMware and parent EMC to spin out VMware’s “tier 2″ technologies into a separate subsidiary shows that they’re under pressure to compete with massive cloud providers like Amazon Web Services and Microsoft in the enterprise.
To say VMware and EMC are desperately seeking enterprise cloud credibility with the proposed spinoff of Cloud Foundry and SpringSource along with key EMC technologies into a separate subsidiary might be overstating the case. But not by much. The move shows that EMC and VMware must strengthen their hand in enterprise software and cloud computing. The EMC subsidiary, expected to be announced this week, will focus resources — and about 1,000 former VMware employees — on this key segment where VMware’s buyout of SpringSource in 2009 and other acquisitions failed to gain traction…
With this move, VMware is taking assets that it undervalued and undersold and gives them their own launch pad. That reconfiguration will let VMware focus on core infrastructure — virtualization, software defined networking etc. — and work with other parties in application development platforms. The new subsidiary gets room to pursue other clouds to host its application services. Startups already use Spring and RabbitMQ, another VMware acquisition, to build applications. But enterprises want support, training etc. to put those application services on their own cloud without being tied to vSphere’s licensing and price model, according to one industry vet…
Read more from the source @ http://gigaom.com/cloud/why-vmware-is-spinning-off-cloud-foundry-and-springsource/