Amazon.com's ( AMZN) Amazon Web Services, the e-commerce giant's cloud computing unit, is in talks with rival cloud computing company VMware ( VMW) about developing software for corporate data centers, according to The Information.
Should the deal come to fruition, it would stand to disrupt the enterprise software industry by significantly expanding AWS' customer base and help VMware retain customers.
The deal would represent the first large-scale effort by AWS to develop software for corporate data centers.
AWS has already struck deals with several companies by convincing them to join its public cloud, but most larger corporations prefer to store data in their own data centers, called a private cloud. VMware is the dominant provider of software to those data centers.
Shares of VMware, a subsidiary of Dell Technologies ( DVMT) , were higher over 2.5% during mid-morning trading on Friday.
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