The companies are also expected to work together in new areas including edge, telco, and 5G, according to the spin-off arrangement. That includes services such as VMware Cloud on Dell EMC, which combines VMware’s high-performance compute, storage, and networking software integrated with Dell EMC hyperconverged infrastructure (HCI). In addition the companies said they expect the spinoff will give both companies financial flexibility while letting them continue growing their tight business-development partnership.
VMware recently said it expects subscription revenue to exceed 40 per cent of its total revenue in its fiscal year ending in January 2025, the Journal stated. But the company has been steadily shifting to a cloud-based model.
About two-thirds of VMware’s revenue still comes from the more traditional business software segments of licensing and maintenance services, according to the Wall Street Journal.
