VMWare Bought AirWatch to Improve Cloud

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VMWare, a server virtualization company, bought the AirWatch venture in a strategic move to improve its cloud services and focus on mobility. The purchase was made for $1.5 billion, though according to ZDNet, the company must also pay installments and stock options that total $365 million to satisfy the agreement.

AirWatch creates and sells technology to businesses that need secure applications and data on mobile devices. Devices include tablets, laptops and phones. This acquisition and and others are part of a broader strategy and trend for businesses to engage in the mobile world. The rapid pace of device manufacturing and technology development coupled with much higher consumer and business expectations has arranged a world in which businesses and consumers are constantly on the go and updating their surroundings. VMware is following suit with the times.

This “consumerization of IT” as it is often referred to in the tech world, means that companies of all shapes and sizes are emerging as mobile and online-first operations. Even those that are not are running more cloud services than ever before and are encountering more data and are seeking options to exploit that data. Some of these relate to internal processes, while some are customer facing.

VMware understood this key development in the importance of IT security at firms across the world and made a big bet accordingly. It is likely to pay off since many companies who are just now adopting to the cloud are concerned with security. VMware is attempting to meet this demand to put minds at ease. VMware bought AirWatch to compete for business mobility markets that want to improve cloud services and stay secure.

VMware said it will continue to have the company ran under its current CEO, John Marshall. VMware will use SkyWatch in its end-user group of products, according to ZDNet.

TechCrunch reported that SkyWatch had previously raised about $225 million from investors. These venture capitol firms included Insight Venture Partners and Accel Partners. Companies are seeking to liberate their employees with information that will help them in the field. VMWare will provide companies the ability to get out of the office armed with information and tools that they need. Now, those apps and devices will be secure with SkyWatch’s technology.

Pat Gelsinger is the CEO of VMWare. He envisions a bright future for the company and wants to add this to their company’s portfolio to make it more a complete solution for end users in the market. They want their customers to be secure while giving them the mobility they desire.

Infrastructure has been widely altered in the marketplace with the proliferation of big data and the cloud, and VMWare has recognized the trend for Bring-Your-Own-Device policies at firms. SkyWatch will add layers of protection to keep stakeholders safer. According to USA Today, SkyWatch has more than 10,000 customers and thousands of employees across the world. VMWare bought SkyWatch and recognizes how it has improved cloud for those customers.

By Rob Lawson

Sources:

ZDNet

TechCrunch

USA Today

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