VMware Completes $2.7 Billion Acquisition of Pivotal

Pat Gelsinger
“Together with Pivotal, we’re poised to be the leading enabler of Kubernetes with a deep understanding of both operators and developers,” said Pat Gelsinger, CEO of VMware.

VMware has completed the acquisition of leading cloud-native platform provider, Pivotal Software. It represents an enterprise value for Pivotal of approximately $2.7 billion. Pivotal’s offerings will be core to the VMware Tanzu portfolio of products and services. VMware Tanzu solutions are designed to help customers transform the way they build, run and manage their most important applications, with Kubernetes as the common infrastructure substrate.

The combination of Pivotal’s developer-centric offerings with VMware’s upstream Kubernetes run-time infrastructure and management tools would deliver a comprehensive enterprise solution – enabling significant improvements in developer productivity in the creation of modern applications.

VMware is able to offer product building blocks and integrated solutions that are “tested and proven” with technical expertise that customers require to accelerate software delivery across data center, cloud and edge environments.

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Numerous mutual customers including Raytheon have reacted positively to the news of the acquisition, according to VMware. Here is Raytheon’s impression of the combination of VMware and Pivotal:

“By working with both Pivotal and VMware, we’ve been able to completely transform how we write software for our military and government customers,” said Todd Probert, Vice President for C2, Space and Intelligence at Raytheon. “Combining these companies under a single umbrella is going to make it possible for my team to get code to our customers even faster and easier.”

“It’s my pleasure to announce Ray O’Farrell as the leader of VMware’s new Modern Applications Platform business unit – uniting the Pivotal and VMware Cloud Native Applications teams,” said Pat Gelsinger, CEO of VMware. “And as Pivotal is now part of VMware, I want to thank the Pivotal leadership team for building a great company. Together, we’re poised to be the leading enabler of Kubernetes with a deep understanding of both operators and developers.”

“Pivotal has fundamentally changed how the world’s biggest brands build and manage software with a focus on developer productivity through platform abstractions and development techniques as well as connecting the business with the developer,” said Edward Hieatt, senior vice president, customer success, Pivotal. “The combination of Pivotal and VMware offers the most comprehensive application platform in the industry and is a win for our customers, a win for Pivotal, and a win for VMware. We’re excited to team up with VMware to help more enterprises become like modern software companies by adopting DevOps and Lean techniques developed by internet giants and the startup community.”