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Remember that VMware spin off? It’s baaa-aack

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VMware(s vmw) is finally getting ready to spin off most of its non-core products to an EMC-run subsidiary, GigaOM has learned. If everything goes according to plan, the move will be announced next week, according to several sources familiar with the effort.

We reported on a similar plan in July but now it looks like it’s ready to roll with the Cloud Foundry Platform as a Service (PaaS); GemStone data caching technology; SpringSource Java frameworks and other non-core VMware offerings all moving over to a subsidiary owned by VMware parent company EMC(s emc), the sources said.

Sources said former VMware CEO Paul Maritz (pictured) will play a key role in the new organization although whether he would be CEO is unclear. And former Pivotal Labs CEO Robert Mee, will also be a key figure. EMC bought Pivotal in March for its agile development expertise

The move will free VMware up to focus on its critical Vsphere and VMware cloud management and virtualization business while the new organization will devote itself entirely to these other products which many say VMware has had a hard time selling.

“The only thing VMware can sell is VMware,” said one source familiar with this situation.

VMware made waves this summer when it talked up a paid commercial version of its Cloud Foundry open-source PaaS, and that ruffled feathers among many of the partners VMware had encouraged to build PaaSes of their own based on Cloud Foundry.  By offloading Cloud Foundry, VMware can avoid that distraction.

VMware could not be reached for comment.

4 Responses to “Remember that VMware spin off? It’s baaa-aack”

  1. Ranbir Oberoi

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  2. I think as far as VMware’s core business this is a great way to refocus on it’s core. But virtualization is becoming a commodity and Cloud is all about applications not IaaS. I liked their move into PaaS with Cloud Foundry. For me it made since as an Architect as it provided a road map from IaaS to PaaS. VMware is extremely good at it’s core but needs to become more of a platform in my opinion and Cloud Foundry was a way. I’m curious as to where EMC will take VMware long term.

    • imho this is a win-win for all parties. It’s a bit of a struggle for an enterprise company to juggle sales in a fierce competitive landscape, which has always been its bread and butter, with that of an open free community platform.
      Not that there isn’t value in that model, there is obviously value in SpringSource and Cloud Foundry for example. However.., how do I say it …, the means to nurture and promote this type of business are very different and at odds with that of a very bottom-line driven one making internal management complex and challenging.

      Spinning out these other businesses into a separate entity which can be dedicated to the community open source model will be sure to see those technologies grow, and not be stifled because they deviate from the parent companies core business model. Best thing that could happen for both.