A Wall Street analyst says VMware is winning fans because it makes it as much as 40% cheaper to use Amazon's cloud in conjunction with their own servers

• VMware is helping enterprises see savings of up to 40% in hybrid cloud deployments, according to a Wall Street analyst.
• VMware is winning more fans among CIOs because of this.
• While it recently formed a partnership with Microsoft, VMware on Amazon Web Services is becoming the "clear choice" of enterprises, the analyst said.
• Click here for more BI Prime stories.

VMware is winning fans among CIOs who are finding hefty savings in using the tech giant's software in hybrid cloud deployments, a Wall Street analyst said Wednesday.

VMware's technology allows businesses to tap disparate computer systems on their premises or in the cloud as one network, reducing costs and the need for servers, storage and other hardware.

Wedbush analyst Daniel Ives said VMware is making it easier for businesses to set up networks on premise and in the cloud, particularly on Amazon's platform.

"The savings for customers...can be upwards of 35%-40% in some instances based on our checks as customers can now run AWS infrastructure on-prem without the purchase of new hardware or application/operating model modification," Ives told clients in a note. "We believe many enterprises are seriously considering the merits of this strategic cloud shift."

VMware's virtualization software makes it easier for enterprises to move to the cloud or embrace a hybrid cloud strategy, in which they store and process data and use applications on a public cloud, such as those run by Microsoft and Amazon, while still performing some of those tasks on their own data centers.

VMware has had a partnership with Amazon since late 2016. It unveiled a new one with Microsoft in April, in a move that was seen as bad news for Amazon.

But Ives said it's the software behemoth's partnership with Amazon that has become the key driver for VMware's momentum.

"VMware cloud on AWS is becoming the clear choice by CIOs/IT product managers as it saves operational dollars and spend on data centers," Ives, who has an outperform rating on the company, said.

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