How VMware’s Partnership With Amazon Could ...

(Bloomberg) — VMware Inc. stock has gained almost 50 percent since last October, riding a wave of optimism about a partnership with Amazon.com Inc. that was meant to save the software maker from oblivion as customers shifted more of their systems to the cloud.
The accord was announced with fanfare last year as a way for VMware to keep close ties to clients even as they move to internet-based computing – a business Amazon dominates, and one where VMware lagged. It was seen as a win for all parties. Customers that rely on VMware's software for making servers more efficient could move some of their applications – for whatever the task, be it billing, payroll or email – over to Amazon's cloud service without having to completely rewrite them. The resulting product, VMware Cloud on AWS, was released on Monday, with VMware Chief Executive Officer Pat Gelsinger and Amazon Web Services CEO Andy Jassy touting the release at VMware's big annual conference in Las Vegas.
See also: You Can Now Spin Up VMware Servers in Amazon Data Centers
Here's the problem: there's nothing keeping Amazon from developing its own competing set of products down the road. Should that happen, VMware would be poised to lose customers – including some that it helped introduce to Amazon Web Services through this partnership.
"We'll have to see how this relationship evolves over the next three to five years, but that is the thing that VMware will have to navigate very
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