The story
Founded by Diane Greene and Mendel Rosenblum in 1998.1
Technical background
Virtualizing the x86 architecture was widely considered impractical in the late 1990s. Unlike the IBM System/370 mainframe architecture, which had supported virtualization since the 1960s, the x86 instruction set contained seventeen instructions that did not meet the Popek and Goldberg requirements for classical virtualization, behaving differently in privileged and unprivileged modes without generating traps that a virtual machine monitor could intercept.
VMware's technical approach grew out of the Disco research project at Stanford University, led by Mendel Rosenblum, which had virtualized the MIPS architecture for large ccNUMA multiprocessors in the mid-1990s. The founders' key insight was that x86 could be virtualized by combining direct execution of user-mode code with binary translation of kernel-mode code, dynamically rewriting problematic instructions at runtime.
Founding
VMware was founded in 1998 by Stanford computer science professor Mendel Rosenblum; his wife Diane Greene, who became the company's CEO and had previously led several technology startups; Rosenblum's Stanford graduate students Edouard Bugnion and Scott Devine; and Edward Wang, an associate of Greene's from the University of California, Berkeley. According to Greene, early fundraising was difficult, as investors of the period were focused on consumer internet startups and did not understand the value of virtualization on commodity PC hardware. VMware operated in stealth mode for its first year, with roughly 20 employees by the end of 1998, and launched publicly at the DEMO conference in February 1999.
Early products and growth
VMware's first product, VMware Workstation, was released in May 1999 and was marketed primarily to software developers and quality-assurance engineers, who used it to run multiple operating systems simultaneously on a single desktop computer for development and testing.
In 2001, VMware entered the server market with two products: the hosted VMware GSX Server, which ran on top of a conventional operating system, and VMware ESX Server, a "bare-metal" hypervisor that ran directly on server hardware without an underlying host operating system. ESX addressed a widely recognized inefficiency in enterprise data centers of the period, where servers typically operated at low utilization rates because individual applications were deployed on dedicated physical hardware for isolation and administrative reasons. By consolidating multiple workloads onto a single physical host, ESX offered substantial reductions in hardware, power, cooling, and data-center floor space.
In 2003, VMware introduced VMware VirtualCenter for centralized management of ESX hosts, along with vMotion and Virtual Symmetric Multi-Processing (SMP). vMotion enabled the live migration of running virtual machines between physical hosts with no perceptible downtime, allowing administrators to perform hardware maintenance without interrupting services. 64-bit guest support was added in 2004.
Acquisition by EMC
On January 9, 2004, under the terms of the definitive agreement announced on December 15, 2003, EMC (now Dell EMC) acquired the company with US$625 million in cash. On August 14, 2007, EMC sold 15% of VMware to the public via an initial public offering. Shares were priced at US$29 per share and closed the day at US$51.
On July 8, 2008, after disappointing financial performance, the board of directors fired VMware co-founder, president and CEO Diane Greene, who was replaced by Paul Maritz, a 14-year Microsoft veteran who was heading EMC's cloud computing business unit. Greene had been CEO since the company's founding, ten years earlier. On September 10, 2008, Mendel Rosenblum, the company's co-founder, chief scientist, and the husband of Diane Greene, resigned.
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On September 16, 2008, VMware announced a collaboration with Cisco Systems. One result was the Cisco Nexus 1000V, a distributed virtual software switch, an integrated option in the VMware infrastructure.
In April 2012, EMC transferred control of the Mozy backup service to VMware.
On April 12, 2011, VMware released an open-source platform-as-a-service system called Cloud Foundry, as well as a hosted version of the service. This supported application deployment for Java, Ruby on Rails, Sinatra, Node.js, and Scala, as well as database support for MySQL, MongoDB, Redis, PostgreSQL, and RabbitMQ.
In August 2012, Pat Gelsinger was appointed as the new CEO of VMware, coming over from EMC. Paul Maritz went over to EMC as Head of Strategy before moving on to lead the Pivotal spin-off.
In March 2013, VMware announced the corporate spin-off of Pivotal Software, with General Electric investing in the company. Most of VMware's application- and developer-oriented products, including Spring, tc Server, Cloud Foundry, RabbitMQ, GemFire, and SQLFire were transferred to this organization.
In May 2013, VMware launched its own IaaS service, vCloud Hybrid Service, at its new Palo Alto headquarters (vCloud Hybrid Service was rebranded vCloud Air and later sold to cloud provider OVH), announcing an early access program in a Las Vegas data center. The service is designed to function as an extension of its customer's existing vSphere installations, with full compatibility with existing virtual machines virtualized with VMware software and tightly integrated networking. The service is based on vCloud Director 5.1/vSphere 5.1.
In September 2013, at VMworld San Francisco, VMware announced the general availability of vCloud Hybrid Service and expansion to Sterling, Virginia, Santa Clara, California, Dallas, Texas, and a service beta in the UK. It announced the acquisition of Desktone in October 2013.
Acquisition by Dell
In January 2016, in anticipation of Dell's acquisition of EMC, VMware announced a restructuring to reduce about 800 positions, and some executives resigned. The entire development team behind VMware Workstation and Fusion was disbanded and all US developers were immediately fired. On April 24, 2016, maintenance release 12.1.1 was released. On September 8, 2016, VMware announced the release of Workstation 12.5 and Fusion 8.5 as a free upgrade supporting Windows 10 and Windows Server 2016.
In April 2016, VMware president and COO Carl Eschenbach left VMware to join Sequoia Capital, and Martin Casado, VMware's general manager for its Networking and Security business, left to join Andreessen Horowitz. Analysts commented that the cultures at Dell and EMC, and at EMC and VMware, are different, and said that they had heard that impending corporate cultural collisions and potentially radical product overlap pruning, would cause many EMC and VMware personnel to leave; VMware CEO Pat Gelsinger, following rumors, categorically denied that he would leave.
In August 2016 VMware introduced the VMware Cloud Provider website.
Mozy was transferred to Dell in 2016 after the merger of Dell and EMC.
In April 2017, according to Glassdoor, VMware was ranked 3rd on the list of highest paying companies in the United States.
In Q2 2017, VMware sold vCloud Air to French cloud service provider OVH.
On January 13, 2021, VMware announced that CEO Pat Gelsinger would be leaving to step in at Intel. Intel is where Gelsinger spent 30 years of his career and was Intel's first chief technology officer. CFO Zane Rowe became interim CEO while the board searched for a replacement.
Spinoff from Dell
On April 15, 2021, it was reported that Dell would spin off its remaining stake in VMware to shareholders and that the two companies would continue to operate without major changes for at least five years. The spinoff was completed on November 1, 2021.
On May 12, 2021, VMware announced that Raghu Raghuram would take over as CEO.
In May 2022, VMware announced that the company had partnered with Formula One motor racing team, McLaren Racing.
Acquisition by Broadcom
On May 26, 2022, Broadcom announced its intention to acquire VMware for approximately $61 billion in cash and stock in addition to assuming $8 billion of VMware's net debt, and that Broadcom Software Group would rebrand and operate as VMware.
In November 2022, the UK's Competition and Markets Authority regulator announced it would investigate whether the acquisition would "result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services".
The transaction closed on November 22, 2023, after a prolonged delay in getting approval from the Chinese regulator on an additional condition that VMware's server software should maintain compatibility with third-party hardware and not require the use of Broadcom's hardware products. On completion, Broadcom reorganized the company into four divisions: VMware Cloud Foundation, Tanzu, Software-Defined Edge, and Application Networking and Security, and subsequently laid off over 2,800 employees. Broadcom also relocated its headquarters from North San Jose to VMware's headquarters campus in Palo Alto.
On December 13, 2023, VMware ended availability for perpetually licensed products such as vSphere and Cloud Foundation, moving exclusively to subscription-based offerings. The company stated that the change was planned prior to the Broadcom acquisition.
In February 2024 private equity firm KKR and Broadcom agreed for KKR to acquire Broadcom's End-User Computing (EUC) Division, formerly a division of VMware, for about $4 billion. The EUC division, renamed to Omnissa, includes the desktop and app virtualization product Omnissa Horizon (formerly VMware Horizon) and the device management suite Omnissa Workspace ONE (formerly VMware Workspace ONE).
In May 2024, VMware announced that VMware Workstation Pro and VMware Fusion Pro would be made free for personal use, with commercial use still requiring payment. In November 2024, VMware announced that commercial use would be free too.
Litigation
In March 2015, the Software Freedom Conservancy announced it was funding litigation by Christoph Hellwig in Hamburg, Germany against VMware for alleged violation of his copyrights in its ESXi product. Hellwig's core claim is that ESXi is a derivative work of the GPLv2-licensed Linux kernel 2.4, and therefore VMware is not in compliance
with GPLv2 because it does not publish the source code to ESXi. VMware publicly stated that ESXi is not a derivative of the Linux kernel, denying Hellwig's core claim. VMware said it offered a way to use Linux device drivers with ESXi, and that code does use some Linux GPLv2-licensed code and so it had published the source, meeting GPLv2 requirements.
The lawsuit was dismissed by the court in July 2016 and Hellwig announced he would file an appeal. The appeal was decided February 2019 and again dismissed by German court, on the basis of not meeting "procedural requirements for the burden of proof of the plaintiff."
In May 2023, VMware was ordered to pay $84.5 million for patent infringement on two patents belonging to Densify, a Canadian software company.
In August 2024, AT&T filed a lawsuit alleging that Broadcom broke contract by refusing to provide a one-year renewal for perpetually licensed VMware software support and that it increased prices by 1,050%.
From Wikipedia’s article on VMware, shared under CC BY-SA 4.0.8