VMWare Studio is a free virtual appliance that allows users to author, configure, deploy and customize virtual machines, vApps, and virtual appliances. It provides templates for common configurations and allows customization of hardware, operating systems, applications, and output formats. The output can be single VMs or multi-VM vApps packaged in OVF format for deployment to vSphere or vCloud Director. The tool aims to simplify the process of creating and distributing virtual appliances.