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Thứ Ba, 21 tháng 5, 2013

VMware to Offer SAP Software Within Its vCloud Service - Fox Business

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VMware Inc. (VMW) is expanding into delivering its software online, including a partnership that will put its service into competition with online software launched last year by Oracle Corp. (ORCL).

VMware introduced a product to start running customer applications in an online managed service called vCloud Hybrid Cloud. The service, which will be billed by the hour in monthly increments, is aimed at attracting customers trying to get the latest software at the lowest cost. The offering also will include the core database and management software of SAP AG (SAP) of Germany, a major Oracle competitor.

VMware will deliver many of the core SAP software tools, including its HANA data analysis software, in a subscription model through the vCloud service. The goal is to offer SAP software and ongoing managed services for a single monthly price offered by VMware, an SAP spokesman said in an email response to questions.

The partners will provide more detail on the service when it is launched later this year.

VMware and its majority owner, storage hardware maker EMC Corp. (EMC), have embarked on a range of initiatives to help customers move applications out of dedicated hardware and into online environments. VMware's new online services are part of that strategy.

The news follows EMC's announcement earlier this month about a package of utilities called EMC Proven Solutions to help customers move SAP software from on-premises physical storage into private cloud applications built on VMware virtualization software.

The announcements deepen the relationship between EMC, SAP and VMware and puts them in more direct competition with Oracle Corp. (ORCL) and its Oracle Public Cloud introduced last year.

Oracle declined to comment on the new VMware offerings.

VMware's virtualization software underpins the shift to cloud computing, which makes more efficient use of computer servers by pooling their resources. The approach requires fewer computer systems to get the same amount of computing work done.

Most VMware customers create their virtual computers on hardware they own or contract for in private.

VMware is attacking that market with its vCloud virtual private cloud that will offer customers dedicated computing power in a public cloud. IT will be priced at 4.5 cents an hour for a 1 gigabyte virtual machine.

The vCloud dedicated service will offer isolated and reserved computing power priced at 13 cents per hour for the same capacity. Both online services will be sold with monthly service agreements.

VMware Inc.'s first-quarter earnings declined 9.3% as realignment charges weighed on the software maker's results, though services revenue rose and expense controls improved core earnings.

Write to Steven D. Jones at

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