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VMware just closed $2.7B Pivotal acquisition

vmware pivot acquisition

On December 30, VMware, a major innovator in enterprise software, announced the closure of acquisition of Pivotal Software, a leading cloud-native platform provider, for $ 2.7 Billion. It was originally announced in August 2019. Pivotal will become a part of the modern application platform, managed by VMware Executive Vice President Ray O'Farrell.

“In the future when Pivotal is a part of this story, they won’t be just delivering technology, but also deep expertise to support application transformation initiatives,” Ray O'Farrell said.

This acquisition will help VMware transform itself from a company specializing exclusively in virtual machines into a provider of cloud technologies, as well as a developer of solutions for application development and infrastructure management.

VMware started moving in this direction with the acquisition of Heptio and Bitnami. Not so long ago, the Pivotal Application Service on Kubernetes solution was introduced, allowing developers to move their own applications into containers and work in cloud platforms.

In fact,  in 2015 VMware and Pivotal were part of a consortium of companies that Dell acquired as part of its EMC acquisition spending $ 67 billion. Although both companies were initially part of EMC and then owned by Dell, they worked separately and independently, apart from each other. Pivotal became popular because of its own PaaS platform. It is based on Cloud Foundry technology and used in the development of applications for the corporate segment. 

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