But clearly, to take control of VMware requires the consent of Michael Dell and Silver Lake because they own more than 51 percent as a pair. At this point, it is a steady freddy, legacy systems software platform with over , customers in the enterprise datacenters of the world.
In , there were 36 million VM guests on the ESXi hypervisors of the world, and we estimated in that had nearly doubled to around 60 million guests. It is probably closer to 90 million guests these days. IT is not their business , as it most certainly is for hyperscalers and cloud builders.
If that matters. We think it might matter to Gelsinger, who is looking for wins, and who knows VMware better than he does? Who knows better the competitive issues it faces? Or the beauty of a legacy platform that can be milked? The question is, does Michael Dell appreciate this, and does he want to be the largest shareholder of Intel but lose his controlling stake in VMware as part of the bargain.
Just to pay for VMware without a premium, Intel would have to issue 1. The premium might have to come from cash, and Michael Dell would get his 42 percent of that to put into his own pocket, so that is a motivation. But his stake in Intel, unless he already owns a lot of it privately, would only be around 10 percent. Still, that is probably a lot of sway separate from the control Dell, the man, has over the largest OEM server and PC supplier in the world.
Intel could certainly use VMware to do a better job attacking virtual storage and virtual networks, and to come up with a coherent and enterprise-friendly DPU story. Intel buying VMware once it is set free is an interesting idea, and not the stupidest thing we ever heard, considering all of the chess pieces on the board. For all we know, this is the plan that is cooking. And if not, you can bet Dell and Gelsinger are thinking about it right now.
One final thing. Here is the secret decoder ring to decipher the title. The following are the architectural generations of X86 processors relevant to the datacenter, subject to debate we realize. So this crazy idea ranking is a bit of an Easter egg. Featuring highlights, analysis, and stories from the week directly from us to your inbox with nothing in between. Subscribe now. It is pretty obvious to everyone who watches the IT market that Intel needs an architectural win that leads to a product win in datacenter compute.
And it is pretty clear that the top brass at Intel are putting a lot of chips down on the felt table that the …. The promises of the cloud — from agility and scalability to reduced costs and easier access to emerging technologies like artificial intelligence AI and advanced analytics — have been out there for more than a decade and enterprises are continuing to push more of their operations to such hyperscale providers ….
There are some features in any architecture that are essential, foundational, and non-negotiable. Right up to the moment that some clever architect shows us that this is not so. What is true of buildings and bridges is equally true of systems and their processors, which is why we use the …. Intel eight now is desperate. This is a seminal moment in history. It is time for Intel to give up the fight for X VMware has a future. In order for the deal to close, Dell must receive a ruling from the Internal Revenue Service deeming the transaction tax-free.
The companies plan to continue their current business agreements, and collaborate and co-engineer products for customers. While VMware has been a strong player in the hybrid cloud arena, it is still dealing with the dueling revenue streams of its older, legacy licensing business, with subscription-based revenue for cloud-based customers.
Whoever eventually takes the helm needs to assure investors that they can make VMware stand out on its own. He exercised 2. Follow her on Twitter tpoletti. ET By Therese Poletti. DELL The deal is expected to close at the end of this year, but it has to clear a number of regulatory hurdles first.
That includes garnering a favorable ruling from the IRS that the deal qualifies for a tax-free spin-off, which could prove to be a considerable hurdle for a deal like this. The transaction is not a surprise.
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