Key Stats
Founded: February 10, 1998
Headquarters: Palo Alto, California
Acquired by Broadcom: November 22, 2023 ($69 billion)
Employees: Approximately 38,000 (at acquisition)
Former NYSE Ticker: VMW
VMware revolutionized enterprise computing by pioneering x86 virtualization technology. The company enables organizations to run multiple operating systems on a single physical server, transforming data center efficiency and laying the groundwork for modern cloud computing.
The company operates through cloud infrastructure, networking, security, and digital workspace solutions. VMware Cloud Foundation serves as the flagship private cloud platform. Enterprises worldwide rely on VMware’s hypervisor technology to manage virtualized workloads.
Broadcom acquired VMware in November 2023 for $69 billion. The company generated $13.35 billion in revenue during its final fiscal year as an independent entity. VMware now operates as part of Broadcom’s infrastructure software division.
VMware History
VMware began in 1998 when five technologists recognized the potential of virtualization for modern computing. Diane Greene served as founding CEO while her husband Mendel Rosenblum contributed the technical vision from his Stanford University research. The team released their first product, Workstation 1.0, at the DEMO conference in 1999.
EMC Corporation acquired VMware in 2004 for $625 million. The company continued growing under EMC ownership and went public in 2007 with a $19.1 billion valuation. Dell Technologies gained control through its 2016 acquisition of EMC before spinning VMware off as an independent company in 2021.
1998
Diane Greene, Mendel Rosenblum, Scott Devine, Edward Wang, and Edouard Bugnion founded VMware in Palo Alto, California.
1999
Released Workstation 1.0 at DEMO 1999, bringing virtualization technology to the desktop market.
2002
Launched ESX Server 1.5, the first enterprise hypervisor. Issued first patent for virtualizing computer systems.
2004
EMC Corporation acquired VMware for $625 million, recognizing the strategic value of virtualization technology.
2007
VMware went public on NYSE with a $19.1 billion valuation, marking the largest tech IPO of the year.
2009
Launched vSphere, the virtualization platform that became the foundation for enterprise cloud computing.
2012
Acquired Nicira for $1.26 billion, gaining network virtualization technology that became NSX.
2016
Dell completed its $67 billion acquisition of EMC, gaining control of VMware.
2021
Dell Technologies spun off VMware as an independent public company. Raghu Raghuram became CEO.
2023
Broadcom completed the $69 billion acquisition of VMware, integrating it into its infrastructure software division.
VMware Co-founders
Diane Greene
Founding CEO who led VMware from startup to a $19 billion IPO. She later became CEO of Google Cloud after founding Bebop Technologies.
Mendel Rosenblum
Stanford University professor whose research on virtual machines laid the technical foundation. He served as chief scientist until 2008.
Edouard Bugnion
Chief architect and CTO until 2005. He later founded Nuova Systems, which Cisco acquired to create its Nexus switches.
VMware Revenue
VMware generated $13.35 billion in revenue during fiscal year 2023, its final full year as an independent company. Revenue grew consistently over the decade as enterprises adopted virtualization and cloud infrastructure solutions.
VMware Annual Revenue (in Billions USD)
VMware Competitors
VMware competes in the virtualization and cloud infrastructure market against major technology vendors. Microsoft Hyper-V poses the strongest challenge in enterprise environments, while open-source alternatives gain traction among cost-conscious organizations.
| Company | Product | Headquarters |
|---|---|---|
| Microsoft | Hyper-V, Azure Stack | Redmond, WA |
| Citrix Systems | XenServer | Fort Lauderdale, FL |
| IBM | Red Hat Virtualization | Armonk, NY |
| Amazon | AWS EC2 | Seattle, WA |
| Google Compute Engine | Mountain View, CA | |
| Oracle | VirtualBox, Oracle VM | Austin, TX |
| Nutanix | AHV Hypervisor | San Jose, CA |
| Proxmox | Proxmox VE | Vienna, Austria |
| Red Hat | OpenShift Virtualization | Raleigh, NC |
| SUSE | Rancher, Harvester | Nuremberg, Germany |
VMware Marketcap
VMware’s market capitalization reached $61 billion at the time of the Broadcom acquisition in November 2023. The company’s valuation fluctuated significantly based on ownership structure changes, including the Dell spinoff in 2021 that nearly tripled its market value.
VMware Market Capitalization (in Billions USD)
VMware Acquisitions
VMware completed 55 acquisitions throughout its history, strategically expanding capabilities in networking, security, cloud management, and application development. The company invested billions to build a comprehensive enterprise technology platform.
The Nicira acquisition in 2012 for $1.26 billion transformed VMware’s networking strategy. Nicira’s technology became the foundation for NSX, the software-defined networking platform that enables microsegmentation and virtual network management across data centers.
VMware’s 2019 acquisition spree proved particularly aggressive. The company acquired Pivotal Software for $2.7 billion, gaining cloud-native application development capabilities. Carbon Black joined for $2.1 billion, adding endpoint security to the portfolio.
Earlier strategic purchases shaped VMware’s evolution. SpringSource in 2009 brought enterprise Java application development. AirWatch in 2014 added mobile device management capabilities. VeloCloud in 2017 provided SD-WAN technology for wide-area network optimization.
Following the Broadcom acquisition in 2023, the company’s End-User Computing division was sold to KKR for approximately $4 billion. This unit, rebranded as Omnissa, includes Horizon virtual desktop and Workspace ONE device management products. Broadcom retained the core virtualization and cloud infrastructure businesses.
FAQs
When was VMware founded?
VMware was founded on February 10, 1998, in Palo Alto, California. Five technologists including Diane Greene and Mendel Rosenblum established the company to commercialize x86 virtualization technology.
Who owns VMware now?
Broadcom owns VMware following the $69 billion acquisition completed on November 22, 2023. VMware now operates as part of Broadcom’s infrastructure software division alongside other enterprise software products.
What is VMware vSphere?
VMware vSphere is the company’s flagship virtualization platform for enterprise data centers. It includes the ESXi hypervisor and vCenter management tools, enabling organizations to run multiple virtual machines on physical servers.
Where is VMware headquartered?
VMware is headquartered in Palo Alto, California. The company maintained this location since its founding in 1998, operating from facilities on Hillview Avenue before the Broadcom acquisition.
What is VMware Cloud Foundation?
VMware Cloud Foundation is an integrated private cloud platform combining virtualization, storage, networking, and management. Broadcom positions VCF as its flagship enterprise offering for organizations building hybrid cloud environments.
