Google and VMware Bolster Alliance to Lift Sales

Google and VMware Bolster Alliance to Lift Sales
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Google’s cloud-computing unit unveiled an expanded partnership with VMware, as the Alphabet division seeks to catch up to rivals that have similar deals, according to Bloomberg. The pact will help VMware satisfy customers who want to move VMware-based workloads from their corporate servers to Google’s public cloud.

Google’s annualized sales for its cloud-computing business will be $8 billion this year, the company said last week during its earnings call. That figure includes internet-based computing and storage, as well as Google’s suite of productivity apps for word processing, spreadsheets and other office needs.

Cloud revenue generated by market leaders Amazon and Microsoft dwarf Google’s expected performance this year, boosting the need for partnerships with common corporate vendors like VMware, which has tens of millions of enterprise workloads running on its software.

This “means customers can bring all their existing VMware tools, policies, practices from a private cloud on premise to Google Cloud,“ Thomas Kurian, the unit’s CEO, said in an interview. “Customers were asking us to make it easy to protect their investments in VMware.“

Kurian said customers also can access Google’s artificial intelligence, machine learning and analytics tools, as well as deploy their apps to all the regions where Google has data centers, beginning in the U.S. The Information reported earlier Monday that Google and VMware were discussing a cloud partnership.

“We don’t go into a customer and tell them what public cloud they should use,“ Sanjay Poonen, the COO of VMware, said in an interview. “Customers have picked GCP for reasons particular to the strength of their platform, like AI. Since Thomas has taken over we have seen more interest in Google Cloud Platform.“

VMware will also not directly sell the software integration with Google, unlike the dynamic in its partnership with Amazon, which VMware has described as its key cloud ally since its 2016 deal. Starting later this year, customers will be able to buy the product in Google’s cloud marketplace, and Google and CloudSimple will field any customer service inquiries should something go awry. VMware’s tie-in with Microsoft Azure is structured in a similar way.