I know what the news says, can someone share the real reason? It’s hard to believe that someone would spin off a profit giving entity. Has Dell realised that VMware doesn’t have any future? #tech #software #virtualisation #vmware #dell #vmwarebase #tanzu #avinetworks #carbonblack #spinoff #stock #aws #ibm #microsoft #google #stockmarket #architectslocal
This is easy. Michael gets richer by breaking apart the company. Stock trades at a discount to the two companies separately.
Long ago EMC owned VMWare, then Dell acquired EMC for gazillion dollars to consolidate the server hardware market, now they are spinning off VMWare again to focus on hardware. You can ask this question in each one of those previous incidents - why did EMC acquire VMware only to sell itself back to Dell and why are they doing it again. 8% growth is not impressive, it is terrible when compared to other cloud providers.
Why do you have to compare with cloud providers? VMware is not a cloud provider.
Also I fail to understand what is focusing on one vertical means for these companies? It’s not one individual who is focusing on all the verticals.
Seems like a good time sell and it helps the balance so why the hell not ..
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With almost everyone using cloud, I see the market for VMWare shrinking more and more
The revenue seems to increase almost 8% per year?