VMware executive: As the cloud grows, so does the 'new hardware economy'

As more and more companies turn to cloud-based solutions to cut costs and connect to an increasingly digital world, Sanjay Poonen, chief operating officer of VMware said many take a hybrid approach to new technology.

"As you think about companies and their future, they have to decide on the capacity of the data center they want to use now," Poonen told Jim Cramer, the host of Mad Money. "Some people feel they are managing a data center very well, and we can help them modernize it with software, and that's what we do very well." Some companies say, "Look, I do not want to develop much Dell, HP, IBM, Fujitsu, Cisco." The new hardware-based economy is not just these players, but [Amazon Web Services], [Microsoft] Azure, Google, IBM ".

VMware, a cloud computing infrastructure, data center and virtualization company, recently partnered with Amazon Web Services, the online giant's cloud computing group, to provide customers with a more integrated solution.

"If you could take advantage of both worlds, the same tools you've experienced in VMware for management and automation, but getting data center capability on the fly, that's what we've brilliantly innovated here," said Poonen.

VMware's primary goal is to help high-end customers like Coca-Cola and Nike manage on-premise and private cloud operations, combine these functions with the public cloud and develop technologies in the data center, cloud and the mobile landscape.

The company's 500,000 customers include a wide range of retailers, most of them using Airwatch's technology from the cloud giant in their stores to help secure the devices they sell, said COO.

Twenty years ago, the hardware economy was responsible for massive hard disks and cluttered PCs. But a VMware executive told CNBC that there was a new iteration at work.

As more and more companies turn to cloud-based solutions to cut costs and connect to an increasingly digital world, Sanjay Poonen, VMware's chief operating officer, said: Many take a hybrid approach to new technology.

"As you think about companies and their future, they have to decide on the capacity of the data center they want to use now," Poonen told Jim Cramer, the host of Mad Money. "Some people feel they are managing a data center very well, and we can help them modernize it with software, and that's what we do very well." Some companies say, "Look, I do not want to develop much Dell, HP, IBM, Fujitsu, Cisco." The new hardware-based economy is not just these players, but [Amazon Web Services], [Microsoft] Azure, Google, IBM ".

VMware, a cloud computing infrastructure, data center and virtualization company, recently partnered with Amazon Web Services, the online giant's cloud computing group, to provide customers with a more integrated solution.

"If you could take advantage of both worlds, the same tools you've experienced in VMware for management and automation, but getting data center capability on the fly, that's what we've brilliantly innovated here," said Poonen.

VMware's primary goal is to help high-end customers like Coca-Cola and Nike manage on-premise and private cloud operations, combine these functions with the public cloud and develop technologies in the data center, cloud and the mobile landscape.

The company's 500,000 customers include a wide range of retailers, most of them using Airwatch's technology from the cloud giant in their stores to help secure the devices they sell, said COO.

Poonen added that Nike plans to build data centers and many "next-generation consumer applications" with VMware.

"The key is to become a trusted advisor for your client, and that's what we're doing," he said.

Regarding the slowdown in cloud growth or reluctance of companies to switch to "new hardware," Poonen said it was overstated, especially given the position of VMware.

"We believe there will be a fair amount of spending on