The reaction was immediate. Developers called it “sorcery.” For the first time, you could test a buggy kernel patch, crash the virtual machine, and simply restart the window. The host remained untouched.
In February 1998, they founded (a contraction of “Virtual Machine” + “software”). Their secret weapon was a thin layer of software called a hypervisor , which sat directly on the bare metal (Type 1) or on a host OS (Type 2), tricking each guest OS into believing it had its own dedicated CPU, memory, and disk. Part I: The Desktop Era (1999–2003) – Display Code: 1.0 In May 1999, VMware shipped its first product: VMware Workstation 1.0 for Windows and Linux. It was a developer’s dream—a Type-2 hypervisor that let a programmer run Linux inside a window on their Windows laptop, or vice versa.
Today, under Broadcom, VMware is no longer a visionary leader but a cash engine. The name remains on products – vSphere 8, NSX, vSAN – but the soul is different. Yet every time a server runs 20 VMs instead of one, or a VM live-migrates without a hiccup, the ghost of that Palo Alto lab lives on. vmware inc. - display - 8.17.2.14
In a final irony, the date that once symbolized technical wizardry (first live migration) now marks a legacy of lock-in. Some engineers from that 2002 lab have left; others stay, maintaining the kernel of code that still runs inside data centers for 99% of the Fortune 500. Epilogue: The Virtual Legacy VMware did not invent virtualization – IBM mainframes had it in the 1960s. But VMware commoditized it, turning a mainframe luxury into a ubiquitous x86 utility. It enabled the modern cloud era, even if the cloud giants eventually ate its lunch.
Then came the war. In 2005, Microsoft launched Virtual Server 2005 (a rebadged Connectix product). In 2007, (open source) gained traction, and KVM entered the Linux kernel. But VMware had a three-year lead. The reaction was immediate
The killer feature arrived in 2006: (VI3). It bundled ESX 3, VirtualCenter, VMotion, High Availability (HA), and Distributed Resource Scheduler (DRS). A single admin could now manage a thousand servers as one giant pool of resources. Wall Street took notice. Server consolidation projects paid for themselves in 6–9 months.
Maritz pivoted hard. In 2009, VMware launched (the rechristened VI4), adding features like Storage VMotion, Fault Tolerance, and the vCloud API , allowing private clouds to mimic AWS. The tagline: “The cloud operating system.” In February 1998, they founded (a contraction of
August 2007 – VMware’s IPO (NYSE: VMW) saw shares nearly double on the first day, valuing the company at ~$19 billion. The virtualization revolution had gone mainstream. Part III: The Cloud Shift & Paul Maritz Era (2008–2012) In 2008, Diane Greene was ousted as CEO (a decision many later regretted). EMC installed Paul Maritz, a former Microsoft veteran. At the same time, a new threat emerged: public cloud . Amazon Web Services (AWS) was growing fast. Why buy servers and hypervisors when you could rent API-accessible VMs by the hour?