VMware sells its vCloud Air business, furthering its pivot from public cloud
On April 4, 2017, VMware (NYSE: VMW) announced its intent to sell its vCloud Air business to European cloud services provider OVH for an undisclosed amount. With the deal, VMware will offload its vCloud Air U.S. and European data centers as well as its customer operations and success teams to OVH, which will operate the new service as vCloud Air Powered by OVH. The two vendors will maintain their longstanding partnership, as VMware will continue to be involved with R&D, customer support and go-to-market activities for vCloud Air use cases, including data center extension, data center consolidation and data center recovery. The deal benefits both vendors, helping drive OVH’s extension into the U.S. while solidifying VMware’s redefined hybrid cloud strategy, which focuses on multicloud management. The divestiture is expected to close in the second quarter of 2017.