EDITORIAL UPDATE: On July 15, 2020 VMware closed its acquisition of Datrium. The blog post below has been amended to reflect that announcement.
Hybrid cloud has emerged as the most common cloud strategy for our customers. With organizations sometimes having thousands of applications – both existing legacy apps and new cloud microservices – securing and maintaining those apps in hybrid cloud environments is critical to success for many of our customers.
With this in mind, VMware has announced its intent to acquire Datrium, to expand the current VMware Site Recovery disaster recovery as a service (DRaaS) offering with Datrium’s world-class cost-optimized DRaaS solution. This is a significant move forward to help customers build hybrid clouds by combining the consistent infrastructure and operations of VMware Cloud with Datrium DRaaS to reduce the cost and complexity of business continuity.
VMware Cloud is helping customers with its faster, more secure path to cloud with a broad ecosystem of cloud partners, including AWS, Azure, Google Cloud, IBM Cloud, Oracle Cloud and more than 170 VMware Cloud Verified partners. DRaaS is the fastest growing segment for data protection use cases with a $4.5B market growing at 15% CAGR according to IDC’s Worldwide Data Protection as a Service Forecast for 2019–2023. DRaaS is ideally suited to the hybrid cloud model where cloud economics and flexibility match the infrequent but unpredictable characteristics of disaster scenarios.
The Datrium disaster recovery (DR) service expands on the existing performance-optimized VMware Site Recovery DRaaS solution with a cost-optimized option. The Datrium DRaaS solution delivers an end-to-end cloud driven user experience in VMware Cloud on AWS today. The innovative, cost-optimized approach leverages native cloud services, and provides forever incremental point-in-time copies that are encrypted, deduped, and stored efficiently in AWS S3. Most importantly, Datrium brings to VMware a team of world-class engineers with deep experience in storage, virtualization, data protection, and cloud technologies. Datrium is already a VMware partner offering an end-to-end DR service with VMware Cloud on AWS.
Datrium’s proven team and unique IP in cloud storage and end-to-end DR services broadens the VMware Cloud vision to include DRaaS where customers can experience a consistent operating model across the hybrid cloud during DR instances. We look forward to integrating the Datrium product into our VMware Cloud portfolio to offer an operator-friendly architecture consistent with cloud user expectations.
This blog contains forward-looking statements including, among other things, statements regarding VMware's intention to acquire Datrium, the expected benefits of the acquisition and complementary nature and strategic advantages of combined workforce, offerings and opportunities after close. 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: (1) the ability of the parties to satisfy closing conditions to the acquisition on a timely basis or at all; (2) market conditions, regulatory requirements and other corporate considerations that could affect the timing and closing conditions to the acquisition; (3) the ability to successfully integrate acquired assets into VMware; (4) the impact of the COVID-19 pandemic on our operations, financial condition, our customers, the business environment and the global and regional economies; (5) VMware’s customers’ ability to transition to new products, platforms, services, solutions and computing strategies in such areas as containerization, modern applications, intrinsic security and networking, cloud, digital workspaces, virtualization and the software defined data center, and the uncertainty of their acceptance of emerging technology; (6) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the virtualization software and cloud, end user and mobile computing, and security industries, as well as new product and marketing initiatives by VMware’s competitors; (7) VMware's ability to enter into and maintain strategically effective partnerships; (8) rapid technological changes in the virtualization software and cloud, end user, security and mobile computing industries; (9) other business effects, including those related to industry, market, economic, political, regulatory and global health conditions; (10) VMware's ability to protect its proprietary technology; (11) VMware's ability to attract and retain highly qualified employees; (12) adverse changes in general economic or market conditions; (13) changes in VMware's financial condition; and (14) VMware's relationship with Dell Technologies and Dell's ability to control matters requiring stockholder approval. These forward-looking statements are made as of the date of this blog, 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 VMware's 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 post.
(1) Source: IDC, Worldwide Data Protection as a Service Forecast, 2019–2023, Doc # US45610319, November 2019