kill Microsoft competition by Open sourcing VMWare
VMWare should offer their vCloud air with RedHat, Suse Linux or BSD Based Operating systems solution for "almost free" for a period to compete with Microsoft Azure offerings.
VMWare would also need to heavily publicize the significant advantages of their Linux/UNIX-like based Cloud solution in reliability, scalability, performance, Return-on-Investemt and particularly security of anything from Microsoft.
The company cannot otherwise compete with Microsoft with it's hundreds of gold partners, tech media shills and direct links/influence to corporate America they - VMware - do not have.
The last alternative plan would be to make all VMWare software Free/Open Source Software (FOSS) under license that dis-allows Microsoft from stealing any code without revealing all of their own code.