VMware Completes $2.7bn Pivotal Software Acquisition

VMware completes $2.7bn Pivotal Software acquisition

07 January 2020 | Jason McGee-Abe

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Enterprise software player VMware has completed the acquisition of US-based Pivotal Software for $2.7 billion.

Pivotal’s offerings will be core to the VMware Tanzu portfolio of products and services designed to help customers transform the way they build, run and manage their most important applications, with Kubernetes as the common infrastructure substrate.

“It's my pleasure to announce Ray O'Farrell as the leader of VMware’s new modern applications platform business unit—uniting the Pivotal and VMware Cloud Native Applications teams,” said Pat Gelsinger, CEO of VMware (pictured).

“And as Pivotal is now part of VMware, I want to thank the Pivotal leadership team for building a great company. Together, we’re poised to be the leading enabler of Kubernetes with a deep understanding of both operators and developers.”

VMware said that combining the cloud-native platform provider’s developer-centric offerings to its Kubernetes run-time infrastructure and management tools will deliver a comprehensive enterprise solution that enables dramatic improvements in developer productivity in the creation of modern applications.

“Pivotal has fundamentally changed how the world’s biggest brands build and manage software with a focus on developer productivity through platform abstractions and development techniques as well as connecting the business with the developer,” added Edward Hieatt, senior vice president of customer success at Pivotal.

“The combination of Pivotal and VMware offers the most comprehensive application platform in the industry and is a win for our customers, a win for Pivotal, and a win for VMware. We’re excited to team up with VMware to help more enterprises become like modern software companies by adopting DevOps and lean techniques developed by internet giants and the start-up community.”

“Digital transformation and the applications that drive it should not be restricted only to cloud and software giants,” said Ray O’Farrell, executive vice president and general manager of the modern applications platform business unit at VMware. “We believe that modern application development solutions and practices need to be easily accessible to everyday enterprises across the globe. With Pivotal’s developer capabilities as the foundation, we’ll focus on delivering consumable, enterprise-ready cloud native offerings to customers to help them achieve better business outcomes.” 

VMware added that it is committed to connecting infrastructure and application owners to accelerate software deliver and drive business outcomes. It added that it offers product building blocks and integrated solutions that customers need to accelerate software delivery across data centre, cloud and edge environments.

As a result of the acquisition, which was originally announced in August, Pivotal will now operate as a wholly-owned subsidiary of VMware.

VMware had a busy 2019, which included entering into an expanded partnership to support VMware Cloud on Dell EMC within Platform Equinix and announcing that it will acquire Uhana, a company developing artificial intelligence (AI) for carrier networks and applications, so it can expand the capabilities of its telecoms business.