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Dell’s VMware Spin-off: 5 Big Things To Know

Kyle Alspach

The move to create two standalone companies will preserve the close partnership between Dell and VMware around technology development, sales and marketing, according to Dell Technologies.

Dell’s VMware Spin-off

Nearly a year after reports first emerged that Dell Technologies might spin off virtualization leader VMware as a standalone company, the plan is now official. On Wednesday, Dell announced that it expects to spin off its 81-percent share of VMware stock during the fourth quarter of the year. The move will create two standalone companies while making sure to preserve the close partnership between Dell and VMware around technology development, sales and marketing, according to the announcement. “With a strong commercial agreement in place, Dell Technologies will have the ability to continue to work closely with VMware to drive innovation and preserve go-to-market synergies while generating new growth opportunities through an open ecosystem,” Dell said in its news release announcing the spin-off plan.

What follows are five big things to know about Dell’s VMware spin-off plan.

 
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