Tag: Gelsinger

VMware customers will move to subscriptions

Pat-Gelsinger-300x199VMWare CEO, Kicking Pat Gelsinger, expects some customers to buy all of their VMware products on a subscription model

Kicking Pat said that VMware is set to make more of its products available as a service and says it is anticipating some customers wanting their entire VMware purchasing done through a subscription model within three years.

Subscription models are not new at VMware – AirWatch, AppDefense and Wavefront all use it, but most revenues come from  traditional licensing.

“We’re primarily a perpetual licence business, but today about nine percent of our business is as-a-service, in the subscription business, and that portion of our business is growing about three-times faster than our overall business”, Gelsinger said.

“We expect that piece of our business to grow much more rapidly moving forward and, frankly, I expect in a year or two some of you as customers are going to tip over and say ‘that’s how I want to buy all of my products’. Today the vast majority is perpetual but clearly we expect that to become more important and we’ll have a broader set of options.

“In the next three years I expect some of you to say ‘that’s how I want to buy all of my VMware’ and we plan on having offerings in place to be able to enable that.”

Kicking Pat Gelsinger says he does not work for Michael Dell

Pat-Gelsinger-300x199In a comment which would be news to his boss Michael Dell, VMware CEO Kicking Pat Gelsinger says he does not work for him.

Gelsinger was playing down the influence parent company Dell has on VMware, citing recent partnerships with Dell’s competitors as proof

The relationship between the pair has become more formal since Dell acquired EMC, which owned VMware, most recently when Dell announced it would be distributing VMware products.

Speaking at VMworld Europe in Barcelona, Gelsinger stressed that VMware remained an independent company.

“I don’t work for Michael [Dell], I work for the board of directors. We remain an independent legal company with our own route to market.”

Gelsinger said that VMware’s independence is proven by the relationships it has formed with vendors that compete with Dell.

“At VMworld US when I was announcing the HP relationship, Michael Dell was in the front row. Absolutely, we’re going to partner broadly across the ecosystem, but we’re going to accelerate the business of VMware by Dell reselling and investing more around the VMware products.”

Dell was benefiting from VMware’s ecosystem – highlighting the announcement today that Dell EMC will offer its commercial customers access to VMware products in IBM’s cloud. The partnership also sees Dell EMC’s infrastructure products added to the IBM Cloud.

“Because of VMware and our partnership with IBM, today Dell announced their partnership with IBM and that is largely as a result of the work and innovation that we were doing jointly with IBM; now it’s expanded to benefit Dell as well,” he said.

“There you see the synergies playing out: not Dell helping us, but us helping Dell.

“Overall we feel very good that the relationship is going quite strongly. We’re announcing major partnerships with other companies like Lenovo, HP, Amazon that aren’t Dell partners, but also doing more with Dell.”

Kicking Pat Gelsinger won’t quit

47187130.cmsThe word on the street has been that Pat “Kicking” Gelsinger is about to clean out his desk at VMware once the EMC/Dell merger concludes.

However Gelsinger apparently has his feet nailed underneath the desk to prevent easy removal, even if it has curtailed his kicking antics for now.

Speaking at the Jefferies Technology Conference Gelsinger  told the assorted Jeffs  that he denied that he was off to pastures new: “I categorically deny it, EMC categorically denies it, and Dell categorically denies it, so there is absolutely no merit or substance to the rumour whatsoever. My intention is to stay here and Michael Dell’s intention is that I stay here.”

Gelsinger met with Dell earlier this week at VMware’s internal R&D conference when his PR team sent him a text about the report of his departure. Gelsinger said he showed his phone to Dell, asked him “Is there something I don’t know and we got a laugh about it”.

Of course Dell could have been laughing in the same way that Game of Thrones villains do before they stick a knife into someone’s liver, but we don’t think Pat is due to go to any weddings.

Gelsinger added that recent exits from VMware were a sign of execs reaching new stages in their lives, rather than tiring of VMware. Some have teenaged kids. Others have closed 100 quarters in a row at public companies and want new horizons. Gelsinger also said VMware’s replacement executives were “experienced and hungry” so clearly they have not found the VMware canteen yet.