VMware is cutting about 800 jobs as it transitions from its traditional products to newer, emerging technologies.

The company expects 2016 will be a key transition year as “we expect the effect of our new products to outweigh the decline in our compute products,” CEO Pat Gelsinger said in an earnings conference call Tuesday.

The company has been facing challenges in its software business as its customers are increasingly using public cloud providers like Amazon Web Services and Microsoft Azure.

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