VMware, Inc. (NYSE: VMW) gained on Monday morning after reports came out that the company is currently in talks with Amazon.com, Inc. (NASDAQ: AMZN), regarding their cloud business to try and expand their partnership into software as well for corporate data centers.
This information, which was reported Monday from an anonymous source, said that VMware and Amazon Web Services are trying to collaborate to develop software for corporate data centers that would allow companies to better access public-cloud resources like AWS while also keeping some information on their own servers.
This hybrid of a cloud service approach by Amazon would be the first of its kind, especially on such a large scale. It would also allow VMware, which is an important software component for many data centers, to branch out and network with a larger market of companies.
The two rivals are reportedly already working on a partnership that would allow AWS customers to access the VMware public cloud. However, neither company confirmed the talks, though VMware cloud exec Mark Lohmeyer said “there will definitely be opportunities to create more integration points between VMware and AWS over time.”
After the report landed about a half-hour into Monday’s trading session, VMware climbed, and by midday trading, was up 2.5%. Amazon gained about 0.9% as the S&P500 SPX, and other broad indexes tracked gains of about 0.1%.