Overview

A Delaware federal jury ruled against VMware in January 2020, finding that the virtualisation giant had infringed on two software patents held by Densify, a Canadian cloud optimisation software company formerly known as Cirba. The verdict required VMware to pay approximately US$236 million in damages. The jury also found that VMware had engaged in unfair competition that caused measurable harm to Densify’s business.

Background: The Case Against VMware

Densify filed its patent infringement and unfair competition complaint in the United States District Court for the District of Delaware against VMware in April 2019. After a nine-day trial, the jury decided in Densify’s favour on 24 January 2020.

The dispute centres on VMware’s vRealize Operations (vROps) software, specifically versions 7.0 and 7.5, as well as a capability called Predictive DRS. Densify alleged these products infringed on two of its patents:

• US8209687 — covering virtual guest-host placement services
• US9654367 — also covering virtual guest-host placement services

Broadly, these patents cover technology for optimising how software applications utilise computing resources across cloud environments and on-premises data centres. Densify alleged that vROps 7.0 introduced an “automated host-based placement” feature that directly competed with a Densify product that VMware had prior knowledge of, and that vROps 7.5 similarly replicated Densify’s patented predictive analytics capabilities.

Trademark Infringement and Unfair Competition Claims

Beyond patent infringement, Densify also alleged trademark infringement, claiming that VMware used the Densify name in association with its own products in ways that created consumer confusion and damaged Densify’s business. As a specific example cited in the complaint, VMware reportedly labelled a vROps feature as “Workload Optimization – Densifying to Repurpose Hosts.”

Densify argued in the complaint that “VMware uses the marks to increase the commercial value of its products and services by creating an association with Densify’s award-winning optimization products.”

What Is Densify?

Densify is a privately held, venture-capital-backed software company headquartered in Canada that specialises in infrastructure optimisation for virtual, cloud, and container environments. Its core product is built around a Cloud-Learning Optimization Engine — internally called Cloe — which uses machine learning to continuously align infrastructure supply with application resource demands.

The company’s stated value proposition includes:

• Predictive analytics to optimise hybrid cloud workloads in real time
• Reduced cloud and infrastructure costs
• Improved application performance through automated resource alignment
• Lower operational risk through increased automation

Densify had previously maintained a technology integration partnership with VMware. Over time, however, Densify alleges VMware evolved from a partner into a direct competitor by building features that replicated Densify’s core intellectual property. According to the company, this lawsuit was its first time pursuing patent litigation.

Densify CEO Gerry Smith commented at the time of filing: “We’ve built an innovative and rapidly growing business that provides our many enterprise customers critically-needed technology. Unfortunately, VMware, a great company, made a bad mistake, and used Densify’s intellectual property. Like any small, successful technology company, the only way we can effectively compete with larger companies is by having a fair and level playing field where intellectual property rights are respected.”

VMware’s Response

VMware disputed the jury’s findings and indicated it would pursue all available legal remedies. In a statement provided to CRN USA, a VMware spokesperson said:

“While we appreciate and respect the judicial process, we continue to strongly believe that we do not infringe the patents asserted against us in this case, and intend to vigorously pursue all legal remedies that are available to us to prove that we are not liable here.”

VMware also stated that it is “proud of its history as an innovator and leader in the enterprise software space.”

Market Impact

Following the verdict announcement, VMware’s stock dropped approximately 5 percent. On 24 January 2020, the stock reached US$155.20 per share in morning trading before falling to approximately US$146.80 per share by Monday afternoon — a level not seen since September 2019, according to CRN’s reporting at the time.

Despite the drop, VMware — majority-owned by Dell Technologies — retained a market capitalisation of approximately US$60 billion. Analysts remained broadly optimistic about the company’s long-term prospects given its strategic focus on security, Kubernetes and container innovation, and a broader transition toward subscription and Software-as-a-Service business models.

Key Takeaways for DevOps and Infrastructure Teams

This case carries several implications worth noting for engineering and platform teams:

• Workload placement and optimisation IP is contested territory. The features at the heart of this dispute — automated host-based placement and predictive resource analytics — are increasingly common in modern infrastructure platforms. Teams evaluating competing tools should be aware that this space is actively litigated.
• Vendor partnerships can complicate competitive boundaries. Densify and VMware had an existing integration relationship before the dispute escalated. Engineering teams relying on co-developed or closely integrated tooling should monitor how vendor roadmaps evolve relative to third-party solutions.
• Patent verdicts do not always result in immediate product changes. VMware indicated it would appeal, meaning vROps customers should track post-verdict developments before drawing conclusions about product availability or feature continuity.

Note: Legal proceedings evolve over time. Readers should verify the current status of any appeals or settlements related to this case, as outcomes may have changed since the original January 2020 verdict.

The End of the Classroom-Only Training Era

Learning and development (L&D) has always sat at the heart of organisational growth, but the format it takes has changed dramatically. Group classroom sessions and once-a-year induction programmes are no longer sufficient for a workforce that is distributed, always connected, and operating in rapidly changing technical environments.

The digital revolution has not only changed the tools used to train employees — it has reshaped expectations around how, when, and where learning should happen. The challenge for organisations is keeping L&D aligned with those evolving expectations, especially for remote teams.

Cloud computing has emerged as a core enabler of this shift. As David White, head of project management at Best Response Media, puts it: “Techniques and methods are constantly evolving, so you need to be constantly learning or you will quickly fall behind.”

Creating a Learning Environment That Supports All Employees

One often-overlooked benefit of cloud-based L&D infrastructure is its role in talent retention and workforce equity. Ian Cook, vice president for people solutions at Visier, points to data from his firm’s Gender Equity report, which identified what he calls a “manager divide” — a growing under-representation of women aged 32 and above in management roles.

“The manager divide is closely tied to the childcare years,” says Cook, “when women experience increased demands from their home life and may even exit the workforce as a result.”

Offering flexible, location-independent training is one practical response. Victoria Usher, founder and CEO of communications consultancy GingerMay, has built her organisation’s working practices around cloud tools including Google Drive, Dropbox, and Slack. Her senior leadership team is 85 per cent female and 85 per cent working parents. “We offer our 50-plus employees very flexible working opportunities and career progression,” she says.

Cloud-based platforms make it structurally easier to deliver training that is not tied to a physical office, removing a barrier that disproportionately affects employees with caregiving responsibilities or those working across different time zones.

Continuous Feedback Replaces the Annual Review Cycle

Perhaps the most significant cultural change enabled by cloud-based L&D is the shift from periodic, formal reviews to continuous feedback loops. When training modules, performance notes, and check-in records all live in shared cloud environments, managers and employees can maintain an ongoing development dialogue rather than waiting for a six-month or annual review.

“Constant contact on feedback, training and performance makes employees feel they are more engaged with the business, compared to six-month or yearly reviews,” says White. This is especially valuable for remote teams, where cloud platforms allow managers to verify that distributed team members have completed the same L&D modules before taking on shared projects.

“We’re all used to consuming infinite apps, content and games, and we’re looking for this same experience at work. This conversational review cycle can help employees learn and grow more quickly, and keep them motivated.”

Ian Cook, VP People Solutions, Visier

The Limits of Digital: Personalisation and Human Judgment Still Matter

Despite the clear advantages, cloud-based training is not a substitute for structured managerial engagement. Digitising delivery does not automatically accelerate the pace at which people acquire and internalise new skills.

“Although our flow of feedback has grown faster, the human ability to grow and master skills hasn’t,” notes Cook. Organisations that simply move existing training content to the cloud without rethinking the underlying process can end up with employees who feel disconnected — submitting work or completing modules with no sense that anything meaningful is being heard or acted upon.

White agrees: “This responsibility comes down to the manager. There is nothing worse than giving feedback that you don’t think is going to be listened to.” Cloud tools amplify good management practices; they cannot replace them. Managers must actively build training plans, listen to feedback, and make employees feel their development is genuinely valued.

Transformative Business Outcomes: What Practitioners Report

For organisations that have integrated cloud-based L&D thoughtfully, the reported business impact is significant. At GingerMay, Usher says that combining multiple cloud solutions has enabled more attentive people management: over two-thirds of staff (68 per cent) work part time, on flexi-hours, or from home — reducing office costs while improving employee satisfaction.

White describes the shift as transformational for Best Response Media: “These technologies have single-handedly had the biggest impact on our workforce and performance. We have been able to increase efficiencies and reduce costs at the same time.”

Cook highlights training analytics as the next frontier. Having lots of content available in the cloud is not the same as having effective training. Analysing completion rates, assessment scores, and downstream performance metrics allows organisations to identify which programmes genuinely improve capability — and to retire those that do not. The same data can surface systemic issues: anomalies in promotion rates, performance review scores, or resignation patterns that point to problems in organisational culture rather than individual performance.

Three Practitioners on Cloud-Based Employee Development

1. James McAulay, Founder of Encore (Musician Bookings Platform)

Encore built its onboarding programme — the “Encore Academy” — entirely in the cloud. New hires work through a master spreadsheet that links to reading materials, checklists, and milestones they can mark as completed during their first weeks. Because everything lives in shared cloud storage, any team member can update the master document as new content is created, keeping onboarding materials continuously current without a formal review process.

Every employee has a fortnightly one-to-one with their manager, with notes kept in Google Sheets. This gives managers a persistent, searchable record of recurring issues and positive achievements — making it far easier to spot patterns over time and to recognise progress between formal reviews.

2. Nigel Davies, Founder and CEO of Claromentis (Intranet Software)

At Claromentis, a distributed team that largely works from home, the digital workplace is the primary environment for everything from product development to HR. E-learning was a natural fit — but Davies found that making budget available was not enough on its own.

Each employee receives an annual training budget (Davies cites £1,500 per person), but when uptake was lower than expected, the company made learning a cultural priority rather than just a financial benefit. Employees are now encouraged to attend training in small groups to preserve the social dimension of learning, and to share highlights with colleagues afterwards. The learning management system (LMS) is now prominently positioned in the digital workplace, visible as soon as employees log in each morning.

3. Sean Marshall, VP Worldwide Sales at Klaviyo (Ecommerce Marketing Platform)

Klaviyo’s sales team uses the Chorus.ai conversation intelligence platform to record, transcribe, and analyse client calls. Recorded calls become group training material: in monthly team sessions, managers play back selected calls, pause at critical moments, and ask structured questions — “How do you think this person handled that objection?” or “What would you have done differently at the close?”

The approach replaces subjective retelling with an objective, shared record of what actually happened. It also surfaces real customer objections and responses to messaging, feeding directly into sales strategy. Marshall reports quarter-by-quarter improvements in win rate as a result of this programme.

Key Takeaways for L&D and DevOps Teams

• Cloud platforms lower the barrier to flexible, location-independent training — critical for distributed engineering teams across time zones.
• Continuous feedback loops outperform annual reviews in keeping employees engaged and identifying skill gaps early.
• Analytics matter as much as content delivery. Knowing that a module was completed is not the same as knowing it improved performance. Build measurement in from the start.
• Culture determines adoption. Providing cloud tools and training budgets is a starting point, not an endpoint. Active managerial engagement and visible cultural commitment are required.
• Cloud data can surface systemic equity issues — such as demographic gaps in promotion or retention — that traditional annual reporting cycles miss entirely.