Network virtualization and cloud infrastructure leader VMware Inc. (VMW) has announced the sale of its vCloud Air segment.

The Palo Alto, Calif.-based company’s long-developing cloud effort will be taken over by Europe’s largest cloud hosting provider, OVH. The selloff will include vCloud operations and sales personnel, data centers and customers, VMware​ Chief Executive Officer Pat Gelsinger told Fortune. VMware will retain rights to the core hybrid cloud technology underlying the product, meaning that existing vCloud Air partners such as Rackspace and International Business Machines Corp. (IBM) will maintain access to the technology.

The announcement comes as ecommerce giant Amazon.com Inc. (AMZN) continues to beat out competition through its unprecedented leadership in the booming public cloud space. As Amazon Web Services (AWS) has gained momentum, the online retail company turned tech giant has persuaded its growing number clients to move applications and data to its own cloud centers, rather than running services such as vCloud Air on third-party off-site data centers. (See also: VMware CEO ‘Really Excited’ About AWS Partnership.)

Calling It Quits

Last year, VMware joined a growing number of tech companies that decided to ultimately throw in the towel as they struggle to compete with Seattle-based AWS. As tech leaders such as Cisco Systems Inc. (CSCO) and Hewlett Packard Enterprise Co. (HPE) have decided to focus on facilitating enterprises’ movement to a hybrid cloud infrastructures instead of building out the platforms themselves, VMware inked a major hybrid cloud deal with AWS.

Along with news, VMware, now a subsidiary of Dell Technologies after its record-breaking $67 billion deal with EMC last year, reiterated its fiscal first-quarter and full-year 2018 guidance. (See also: VMware’s Q1 Forecast Surpasses Estimates.)

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