Move comes after company closes $2.7 billion acquisition of Pivotal
Now that it has closed its acquisition of the cloud platform provider, VMware is creating a new business unit within the company while also running Pivotal as a wholly owned subsidiary.
The Lowdown: VMware officials announced plans to acquire Pivotal in August, the same time they unveiled that the company also was buying cybersecurity vendor Carbon Black for $2.1 billion.
The Details: Pivotal at one time had been – like VMware is now – a Dell Technologies business. While it will be run as a VMware subsidiary, it also is playing a role in the launching of the company’s new Modern Applications Platform business unit, which will include the cloud applications teams from both VMware and Pivotal.
Key to VMware’s plans are combining Pivotal’s developer-centric products with VMware’s Tanzu lineup of tools and services based on the Kubernetes container orchestration technology that helps organizations build, run, and manage their modern applications for cloud, edge, and on-premises environments.
The new business unit will be run by longtime VMware executive Ray O’Farrell, who has been with the company for almost 17 years.
Background: The creation of the new business unit echoes VMware’s move following the closing of the Carbon Black deal to create a new Security Business Unit, with former Carbon Black CEO Patrick Morley acting as its general manager.
The Buzz: “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,” VMware CEO Pat Gelsinger said. “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.”
“Digital transformation and the applications that drive it should not be restricted only to cloud and software giants,” O’Farrell. “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.”
“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,” said Edward Hieatt, senior vice president for 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.”
“By working with both Pivotal and VMware, we’ve been able to completely transform how we write software for our military and government customers,” said Todd Probert, vice president for C2, space and intelligence at Raytheon. “Combining these companies under a single umbrella is going to make it possible for my team to get code to our customers even faster and easier.”