Tag: pat gelsinger

Vmware freezes staff pay and cuts managers’ salaries

VMware  is freezing staff pay and slashing the salaries of its senior management, including chief exec Pat (Kicking)  Gelsinger, to weather the COVID-19 crisis.

Gelsinger, and the company board will  take pay cuts in second and third quarter as part of the measures “to support efforts to manage through the current economic uncertainty”.

A company spokesperson said that the move is part of a “thoughtful and prudent plan designed to address the current uncertainty of the COVID-19 pandemic and the overall economic outlook, while ensuring the company has the skills and talent needed to accelerate growth as the economy stabilises”.

Coronavirus is a black swan says Kicking Pat

VMware CEO Pat “kicking” Gelsinger says the coronavirus pandemic is a“black swan” that changes the way the world works.

Writing in his bog, Gelsinger said: “As we navigate this global pandemic, the future of work is changing. As the work-from-home model becomes the norm and work itself becomes more distributed, we will continue to build infrastructure and technology solutions optimised for the workplace of the future. This is a ‘black swan’ event that I believe will permanently change the way we work, learn, connect, worship and simple how we live in community with each other.”

Kicking Pat leans on the Channel

banner_220x220Kicking Pat Gelsinger claims his Cloud Provider Program has established a “meaningful” area of revenue for VMware.

The VMware Cloud Provider Programme attributed more than 30 percent to the vendor’s revenue stream, which rose 12.5 percent to US$2.17 billion.

Gelsinger, who is the CEO of VMware, said that there has been a consistency to that area of VMware’s that “shocked” everyone.

“There was a prevailing view in the industry that the big cloud guys – AWS, Microsoft Azure and Google Cloud Platform will eat up everybody. The result has been an area of consistent and steady growth for us, and increasingly, we’re being seen as the technology source for all other clouds. Clearly the mega guys are building much of their own technology, but all of the other cloud providers are increasingly relying on VMware’s technologies as the base for building off their cloud”.

Most of that revenue in the past has been driven from vSphere, Gelsinger said and the offering was now gaining more traction for NSX, vSAN and vCloud Director.

“We’re also working to make that program, a great channel for other services. CloudHealth and VMC on AWS will be resold through those channels as well. We’ll be putting more of our products focus through that business relationship. That I believe will be the biggest aspect of our long term growth.”

Gelsinger highlighted many areas of growth opportunities within network with NSX and storage with vSAN, saying VMware was just getting started.

Intel runs out of roadmaps

stapThere was a time, some years ago, when Intel mattered. It doesn’t matter any more at all and it is running out of steam.

Soon, Intel will hold its annual Intel Developer Forum (IDF) – it was a must attend event back in the days when the company had many very talented senior executives. Most of them are goners now.  Intel was famous for inventing things and driving the industry by using its considerable clout to create stuff.

Now it creates nothing, nothing at all.  Like many a large corporation, including Microsoft and many another corp too, it started behaving like an ingrowing toenail, believing – against all the evidence – that it would hold its mighty market share forever.

We did warn Intel repeatedly it shouldn’t rest on its laurels.  When it adopted StrongARM, as a result of the Digital Equipment Corporation (DEC) maneuvers, we advised it that it should drastically change its business model and produce some stunning and cheap devices based on that technology.

But no. Like an ignorant bull, it insisted that the world+dog should have notebooks that cost a small fortune.

The last two years has seen its strategy crumble into dust. No one cares about its roadmaps any more. No one gives a flying fart about its process technology. No one has a clue.  It lost some of its most talented individuals – Kicking Pat Gelsinger, Mike Fister full of dollars, Mike Splinter and the rest, and blithely pursued a path which will lead it to Carey Street, if it’s not careful.

As we reported a week or two back, the freshly minted CEO is attempting to introduce a top down page and firing all the spin doctors who, these days, couldn’t spin their way out of a paper bag, nor organise a piss up in a brewery or cheese factory.

Like many an old dinosaur, its tiny brain doesn’t realise that it has been dying from the tail up for several years. It is a shame – we have the utmost respect for any company that has factories – this is no trivial matter. But engineering its way out of this current crisis is, we feel, a fab too far to go.

VMware needs luck as it sticks its head in the clouds

cloud (264 x 264)VMware has given up trying to wait for its partners to help it become an important name in the cloud space and has decided to do it itself.

Yesterday the outfit unveiled vCloud Hybrid Service to investors. Well we say unveiled we really mean that it told the world that was intending to set up a public cloud service. But it caught everyone on the hop because it was only a couple of months ago that VMware’s Pat Gelsinger sounded so dead set against the public cloud.

Speaking at the VMware’s Partner Exchange Conference in Las Vegas, Gelsinger said that VMware needed to own the corporate workload. He said that the company would lose if they end up in commodity public clouds.

With comments like that to suddenly come out and launch your own public cloud seems a little silly. However what Gelsinger appeared to be saying was that he did not want corporate data on other people’s public clouds.

“We want to extend our franchise from the private cloud into the public cloud and uniquely enable our customers with the benefits of both. Own the corporate workload now and forever.”

But Gelsinger’s plans might be a little tricky to pull off.

When it comes to public cloud there is a lot of top notch competition including Amazon, IBM, and HP who don’t take too kindly to strangers in the market. To make matters worse VMware’s offering will not be around until at least the second quarter.

VMware has chucked a bit of money trying to get the idea of the ground. Former Savvis Cloud president, Bill Fathers, will run the vCloud and has said that the idea will get a level of investment appropriate to that priority and to capitalize on a $14 billion market opportunity.

One of the crucial differences about what VMware is offering is that it is the service “hybrid” so that enterprises should see it as part of the VMware’s packages. The software which the vCloud is based on is called Director. It uses an IaaS environment and lets workloads become managed either in the cloud or in the office in the same way.

But all this is being set up because VMware could not interest its partners in building something similar. VMware had a crack at offering similar products through its ISP partners. But these were a little spooked that vCloud implementation would commodise their products. There were mutterings from ISPs who did not want to pay VMware licensing costs when they had cheaper open source alternatives.

VMware has a job on its hands to prove to VMware Certified Professionals that the public cloud is an extension of the data centre while at the same time convincing them that there are some advantages over the “non-cloud” environments they use now.

The public cloud will be aimed at its existing customer base and sold through its existing VAR and SI channel.

However most of VMware’s channel partners don’t have the skills to help their I&O clients transition from static virtualisation to cloud. So somehow VMware is going to have to give its channel the consulting skills and hope they can bluster their way through conversations where real cloud is needed.
Either way the company has a long way to go before it can sit comfortably among other cloud players. It might just pull it off, but it will take a bit of time and a lot of luck.