VMware IT is transforming itself to operate as an IT-as-a-Service provider. This involves moving to a private cloud infrastructure and software-defined data center. The main challenges have been rapidly increasing the number of virtual machines from 10,000 to over 100,000, and shifting IT staff roles to focus more on infrastructure operations and tenant services rather than individual application support. Key lessons learned include establishing a tiered operations model to separate infrastructure, tenant, and application support responsibilities. The transformation aims to allow IT to spend less on maintaining existing systems and more on innovation.