How Much Can The Partnership With Amazon Contribute To VMware’s Top Line?

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VMware announced a partnership with Amazon’s AWS a few years back, as the companies jointly developed the VMware Cloud on AWS offering. Per AWS’s website, the offering delivers “a highly scalable, secure and innovative service that allows organizations to seamlessly migrate and extend their on-premises VMware vSphere-based environments to the AWS Cloud running on next-generation Amazon Elastic Compute Cloud (Amazon EC2) bare metal infrastructure.”

The unique selling point of this partnership is that VMware is facilitating the development of a hybrid cloud for its customers, with the cloud side being AWS and the on-premise as an open system. While the partnership is mutually beneficial, given that VMware’s overall revenue is much lower than AWS’, the impact of the partnership is likely much more significant for VMware than Amazon. Below we take a look at how much this partnership impacts VMware’s revenue and valuation.

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