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VMware Expands Commitment to Mobile with Acquisition of AirWatch


Today is an exciting day in VMware’s End-User Computing journey. I am very pleased to announce that VMware has entered into a definitive agreement to acquire AirWatch, the leading enterprise mobile management and security provider.  VMware’s vision for end-user computing has been to create a secure virtual workspace that allows end-users to work at the speed of life – so that as they move from desktop, to laptop, to tablet, to phone, to car – their apps, their content, their devices come to life seamlessly – anywhere, anyplace, anytime.  This vision has driven our continued commitment to driving the next generation of the desktop through our Horizon Suite and drove us to acquire Desktone last October to give us a leading Desktop-as-a-Service offering. With today’s news, we take a giant step forward in executing on this vision!

The acquisition of AirWatch extends VMware’s proposition from data-center to device, and strongly positions us for the Mobile-Cloud era.  After the closing of the acquisition, the combination of AirWatch and VMware will make us an instant leader in enterprise mobile management and security, one of the fastest growing and most strategic markets to businesses today.

As we look around the industry, mobile is global – and everyone’s lives, from the top floor to the shop floor, are being transformed by mobile computing.  The world needs a robust enterprise mobility platform for the post-PC world of heterogeneous devices – be it iOS, Android or Windows – and now that is VMware!

I’d like to share more details with you on why this news is so exciting for VMware, for AirWatch, and for our customers.

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Mobile Innovation & Expertise

The synergy between VMware’s End User Computing portfolio and AirWatch’s portfolio is undeniable. Together we can address the full spectrum of mobility needs of enterprises around the world. AirWatch delivers proven solutions for either Corporate Owned or Bring Your Own Device (BYOD) programs.  They offer the industry’s broadest enterprise mobile management and security platform – for everything from Mobile Device Management, Mobile Application Management, a full containerization solution for toggling between individual and corporate data, secure e-mail, productivity apps and web browsing, as well as a Mobile Content Management solution for Enterprise File Sync and Share.  Areas like Telecom Expense Management are in the works.  All in all, this is an exciting opportunity where the disciplines of Management, Security and Virtualization come together in the context of enterprise mobility!

One of the capabilities that we are most excited about is AirWatch’s ability to scale their platform to manage and secure millions of devices, in the cloud, well ahead of anyone else in the industry. AirWatch built their solutions from the ground up to securely support a customer’s entire corporate infrastructure at scale, while at the same time giving customers the flexibility and choice of cloud or on-premises deployment.  AirWatch straddles Mobile, Cloud and Security – all boardroom topics and CIO priorities today, which makes AirWatch’s importance like a “triple-word score” in the game of Scrabble!

Expanding Our Portfolio

Our End-User Computing portfolio has very little overlap with AirWatch.  As such, AirWatch will become the focal point for all of VMware’s mobile development activities. As we integrate the AirWatch and VMware portfolio, customers will continue to benefit from unrivaled innovation to securely manage their users, applications and content – across both desktops and mobile environments – on-premise or in the cloud. AirWatch has an impressive track record of innovation and an enviable base of over 10,000 customers worldwide which we believe is far ahead of their competitors. This customer base includes enterprises and mid-size organizations with a strong presence in all vertical industries, including financial services, healthcare, Federal and retail, where nine of the top 10 retailers in the U.S. rely on AirWatch. As we talked to our customers this past year, we found momentum shifting in AirWatch’s favor, as many VMware customers were selecting AirWatch over other competitors. We believe that these joint customers and partners like the telcos, SIs and VARs, will be excited about our combined potential.

Before I close, I’d like express how much I’m looking forward to working closely with Alan Dabierre, John Marshall and the AirWatch team, pending close of the transaction. We are beyond thrilled to have you all join our VMware End-User Computing family. For me personally, VMware’s expansion within the Mobile space has been a top priority since the day I got to VMware in August 2013.  So this is a major milestone for the entire team at VMware to celebrate! I’m enthusiastic about the power of our combined VMware and AirWatch portfolios, and our ability to bring extraordinary value to our customers. There’s no question that AirWatch will bring invaluable industry expertise to VMware and it’s equally clear that our two organizations share the same deep commitment to breakthrough innovation!

We look forward to continuing our momentum in the End-User Computing space, and serving all of you, our customers and partners, in greater ways in 2014 and beyond.

What do you think about this announcement? Please share your feedback in the Comments section below.

Check out this morning’s coverage of the news on CNBC and be sure tune in to tune in to CNBC’s “Squawk on the Street” at 11 a.m. ET Wednesday for an exclusive interview with VMware CEO Pat Gelsinger.

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Forward Looking Statements

This blog contains forward-looking statements including, among other things, statements regarding the pending acquisition of AirWatch, expectations for this acquisition, its financial impact and potential benefits for VMware and its future growth strategy, expectations regarding the changes in the end user computing space across desktop and mobile, the future growth of mobile and continued leadership in mobile and end user computing. These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) the satisfaction of closing conditions for the transaction; (ii) the successful integration of AirWatch and VMware personnel and technologies; (iii) unexpected costs, liabilities or delays in connection with the transaction; (iv) adverse changes in general economic or market conditions; (v) delays or reductions in consumer, government and information technology spending; (vi) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the space, and new product and marketing initiatives by competitors; (vii) customers’ ability to develop, and to transition to, new products and computing strategies such as desktop virtualization and enterprise mobile management and security; (viii) the uncertainty of customer acceptance of emerging technology; (ix) rapid technological and market changes in software and platforms for cloud, end user and mobile computing; (x) changes to product development timelines; and (xi) our ability to protect our proprietary technology.

These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this blog.

25 thoughts on “VMware Expands Commitment to Mobile with Acquisition of AirWatch

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