Rivals cloud dynasties Amazon Web Services (AWS) and VMware have announced a partnership awaited Friday - they expect it easy to sell in an increasingly competitive market, said CEO "Squawk Alley" CNBC.
The association between the two heavyweights of the technology is based on one of the most important trends in business. Increasingly, companies store more data, and want to be able to access it from anywhere and use in multiple applications.
The new offering, VMware cloud AWS is a software sold with the support of VMWare, which operates public cloud Amazon. Its aim is to help the many companies that already use VMWare in your business, but are hoping to move more of its external data servers, such as those offered by Amazon.
"The announcement that we have done together is really a real win for customers," said Andy Jassy, CEO of AWS. "With the announcement, customers should not take this bit decision more, and get VMWare to use this software used for use on AWS - and do so without having to purchase additional hardware, like most businesses these days not they are looking to buy more equipment. "
Although VMware offers its own cloud services because AWS and VMWare are not well integrated before, customers felt they had to choose, Jassy said. Pat Gelsinger, general manager of VMware, said customers pushed the two companies.
"What we see is that this is already our joint customers, and that's what really makes this powerful announcement," Gelsinger said. "Andy and I were driven by customer demand, because ... basically all companies [is] now takes advantage of Amazon, the creation of this hybrid seamless experience where they get the best of both worlds. "
Amazon has 31 percent of global market share in the clouds, and increasingly, according to research firm synergy studies. But as companies look for flexible combinations of software and data storage, companies like Oracle and Microsoft build cloud offerings, too.
offers hybrid clouds, as offered by VMware and Amazon, it is supposed to be used by 80 percent of IT organizations in 2018, according to IDC estimates. Nutanix saw its shares rise more than 130% after its IPO last month, offering a hybrid version of cloud service.
The combined product from Amazon and VMWare should allow companies to do more, much more profitable and faster, Jassy said.
"When our customers we are pushing is an easy thing to sell," Gelsinger said.
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