Tag: vmware

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.

VMware acquires Dell EMC’s Service Assurance Suite

banner_220x220VMware has written a cheque for Dell EMC’s Service Assurance Suite as part of a cunning plan to boost its  comms provider offerings.

The business offers services across network health and performance monitoring, VMware said, and will be integrated with VMware’s Telco NFV portfolio.

Shekar Ayyar, general manager of VMware’s Telco NFV group, said: “As carriers are readying for 5G, they are increasingly virtualising edge and core networks with network functions virtualisation, or NFV.

“Service assurance is a critical need for any network.”

At VMworld 2017, VMware CEO Kicking Pat Gelsinger said that the vendor would be making a push to work with more telcos, claiming that the firm is “transforming” the telecoms infrastructure space.

VMware said this latest acquisition will enable comms providers to “maintain operational reliability in their core network, cloud and IT domains”.

It also stated that service assurance “becomes critical” as customers look to bridge the gap between 4G and 5G’s imminent arrival.

VMware claims that 50 communications service providers globally, including “many tier-one operators” are currently using the Dell EMC Service Assurance Suite.

Dell mulls what to do with VMWare

vmware-partner-link-bg-w-logoDell is still in a tizzy over what to do about VMWare.

The outfit has ruled out flogging the outfit off and has set up a special committee has been set up to analyse the possible options on the table is a float on the New York Stock Exchange or to fold it into the greater Dell EMC empire.

In a filing made to the US Securities and Exchange Commission, the company explained it might merge with VMware or IPO, depending on what a “special committee” formed to help it analyse all options comes up with after looking into all avenues.

“Dell continues to evaluate potential business opportunities, including a potential public offering of shares of DHI Common Stock of Dell, a potential business combination between Dell and VMware, and a potential conversion of shares of Class V Common Stock of Dell into shares of DHI Common Stock of Dell”, the company said.

“Dell is also considering maintaining the status quo. The potential business opportunities currently being evaluated by Dell do not include the sale to a third party of Dell or VMware.”

The committee has the power to represent shareholders, although if a business opportunity offers the possibility of shares being modified, converted or exchanged, permission from shareholders must be obtained.

“Dell has not determined which, if any, potential business opportunity to pursue and there can be no assurance that any potential business opportunity will be pursued, the terms thereof, or whether, if pursued, any such business opportunity would be consummated”, the filing said.

Gelsinger keeps stumm about Dell takeover

Pat-Gelsinger-300x199For a bloke who might be set to take over Dell, VMware boss “Kicking” Pat Gelsinger is in no mood to talk about it.

When chatting on an earnings call, Gelsinger said he would not comment on “rumours” that VMware could acquire Dell in a reverse merger, after Dell confirmed in February that it was exploring various options.

However, analysts think the reverse merger idea is rather a good one, and the rumours are somewhat more than that.  Gelsinger is not exactly forthcoming and no one wants to get on the wrong side of his mighty boot.

VMware is doing quite well. For the three months ending 2 February, VMware saw revenue jump 14 percent year on year to $2.31 billion. GAAP losses were $440 million (compared with a GAAP profit of $441 million in 2016) as a result of a one-off $970 million tax bill.

Hybrid cloud and software-as-a-service accounted for eight per cent of VMware’s total revenue.

“We are very pleased with customer enthusiasm for our cloud strategy. We believe we have the world’s most complete and capable hybrid cloud architecture, uniquely offering customers freedom and control in their infrastructure decisions.

“We are also pleased with the traction the VMware Cloud Provider Programme continues to gain. The VMware Cloud Provider Programme achieved an annual revenue growth rate of over 30 per cent in the fiscal year 2018.

“We are also experiencing great global customer momentum with our VMware Cloud for IBM with customers such as Amdocs, Ricoh and Vodafone.”

Gelsinger also highlighted the future importance of VMware’s partnership with Amazon Web Services (AWS), which recently launched in the US. The CEO said the service is set to launch in Europe next week.

“The VMware Cloud on AWS continues to get great resonance from our customers, and customers see this idea of the best of public and the best of private coming together as a very powerful force”, he said.

“In many cases, it’s this unique way for them to accelerate their move to the cloud without disrupting their applications – being able to do this in a seamless hybrid way to move into the public and back to the private cloud.

“From the business, as we said, it’s not material this year, and it’s starting to build up. We also see that, given it’s a subscription business, that will also delay the direct fiscal impact.”

AWS, VMware, Microsoft and Symantec are pants vendors

hqdefaultAWS, APC, Citrix, Huawei, McAfee, Microsoft, Symantec, Veritas and VMware are lowest-scoring vendors in a channel management survey according to research outfit Canalys.

The Canalys Leadership Matrix was based on more than 2,700 responses from EMEA channel partners who were asked to rate their vendor partners across ten areas of channel management.

Canalys divided the results into four: “Champions”, “Growers”, “Contenders” and “Stragglers”, the survey also judges vendors on how their standing in the Leadership Matrix has changed.

Nine companies were placed in Canalys’ “Stragglers” quadrant, reserved for vendors that “have shown significant weakness in areas of channel management” or “have seen a deterioration in partner relationships, either by choice or mistake”.

AWS, APC, Citrix, Huawei, McAfee, Microsoft, Symantec, Veritas and VMware were all named as channel Stragglers in the survey.

Vole and VMware, two firms which have “highly successful businesses built on sales via partners,” were named and shamed in the report with Canalys saying that there was “a growing wave of channel dissatisfaction with both brands”.

Dell EMC’s appointment as an “official distributor” of VMware licences last year dealt a blow to its resellers and distributors and likely prompted a fall from grace among partners.

Canalys claimed that Microsoft, meanwhile, has been “accused of squeezing channel margins” through its Cloud Solution Provider partner programme.

The top-scoring vendors in the survey included Fujitsu, Cisco, Lenovo, Palo Alto Networks and Veeam. Canalys said that  Cisco’s quality of technical support for partners remains unparalleled when compared with its competitors, while Lenovo’s “Channel 2.0” initiative, which sought to simplify partner incentives, was well received by the channel.

Apple’s  overall rating was still relatively low compared with its peers, and its resellers still suffer from “low margin potential” and “rigid terms and conditions” from the vendor.


Dell reverse merger should be a last resort

Michael DellBeancounters at Morgan Stanley are not that happy with Michael Dell’s plan to reverse merge his company into VMWare.

While the prospect of VMware merging with Dell Technologies has intrigued the broader market, Morgan Stanley analysts insist the “reverse merger” would be the worst option for VMware shareholders.

It is only one of the plans which have been mooted for Dell Technologies, including a Dell IPO or it acquiring the rest of VMware.

The VMware performing a reverse merger on its controlling firm idea has been questioned by Morgan Stanley analysts Keith Weiss and Sanjit Singh in a note issued to the market.

Weiss and Singh warned investors about the plan and stated that a merger is the “worst-case scenario” for VMware shareholders.

VMware is traded publicly, and a merger would take Dell public without putting the company through an initial public offering.

According to the report, the reverse merger would have tax benefits for Dell and give the company access to VMware’s cash, but it would have a negative impact on VMware’s shareholders.

Analysts at Morgan Stanley project that a combined company would devalue VMware by $28 billion — considerably more than the $500 million to $600 million annual taxes Dell will face if it continues to operate under its existing structure.

The analysts concluded that the reverse merger is the least likely of the strategic options Dell is pursuing, with an IPO or staying private considered better options.

Dell confirms VMWare cunning plan

michael-dell-2Dell Technologies CEO Michael Dell has confirmed that the vendor is considering floating on the New York Stock Exchange or engineering a deal that will see it acquired by VMware.

The move will mean a shake-up of its channel which is still recovering from its integration with EMC.

A filing made by VMware to the US Securities and Exchange Commission said Dell Technologies is: “evaluating potential business opportunities, including a potential public offering of Dell Technologies common stock or a potential business combination between Dell Technologies and the issuer (VMware).”

Accompanying the filing was an internal memo sent by Michael Dell to Dell Technologies employees.

In the memo, the CEO moved to assure employees that the potential restructuring of the group’s ownership was coming from a position of strength, rather than necessity.

He said: “Today, Dell Technologies has made a 13D filing that makes public that our Board of Directors is evaluating potential business opportunities, including business as usual – continue with the existing ownership structure; [a] public offering (IPO) of Dell Technologies Common Stock; [and a] business combination with VMware.”

VMware CEO (Kicking) Pat Gelsinger also released a statement, distancing the vendor from discussions occurring at its parent company.

“We are not in a position to speculate on the outcome of Dell’s evaluation of potential business opportunities. Dell has been a tremendous partner since it became our majority owner and as we’ve accelerated our growth,” he said.

“We look forward to Dell’s continued support as we work to execute our growth plans in the years ahead.”

Dell is obliged to make a statement regarding the discussions because it owns around 82 percent of VMware.

VMware’s share price has plummeted over 20 percent and is yet to recover.

Dell, his outfit’s channel partner revenue, was “up to double digits in [the] first half of FY18”.


VMware lets staff go

vmware-partner-link-bg-w-logoVMware has confirmed it is laying off “a small percentage” of its employees.

VMware CEO “kicking” Pat Gelsinger is refusing to say who is being let go, but we don’t think it will be him. A VMware spokesperson said the cuts were made this week but did not offer any further details as to which areas of the business will be affected.

“Workforce rebalancing is a continual activity across VMware’s businesses and geographies to ensure that resources are aligned with business objectives and customer needs. We continue to recruit in areas of strategic importance for the company.”

After completing its acquisition of EMC, Dell was rumoured to be axing up to 3,000 jobs in 2016. VMware contributed $2 billion to Dell’s bottom line in Q3, after seeing its own revenue jump 52 percent. We guess the reward for those figures is getting rid of the winning team.

However the dark satanic rumour mill suggests that it is all part of VMWare’s war on Veeam. Product releases expected from Dell in early 2018 will have a stronger connection between VMware and Dell EMC’s data protection suite that will close the gap between Dell and Veeam.

VMware was built so it becomes an industry standard and, therefore, it has to be able to work with everybody. Veeam CEO Peter McKay came from VMware, so he knows where all the bodies are buried. A leaner and meaning VMWare might help KickingPat kick some bottom lines.


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.”

Dell EMC allows top partners to buy VMware software

michael-dell-2Dell EMC’s key UK partners are testing a scheme where they can buy VMware software from the vendor.

The big idea is that the vendor will make sure they can deliver a more complete solution by allowing its level one titanium and titanium black partners get access to VMware software.

Apparently, it is something the channel wanted so partners could combine that technology with the hardware it is selling from Dell and EMC.

The latest move will not have any impact on the VMware channel partner programme and Dell EMC’s distributors have been briefed on the plans and have reportedly given it their blessing.

Michael Collins, senior vice president for Dell EMC Channel Business in EMEA, said that it had always promised partners that it would be simple, predictable and profitable and it had to respond to the demand from its largest partners to make it simpler to add VMware to a converged solution sale.

The scheme is in pilot mode for the second half of this year and being run in the UK and France in Europe as well as the US, Canada, Mexico and Brazil with plans to potentially extend it to other countries in the future.

Most of those partners that will be eligible to buy VMware through Dell EMC are already selling the virtualisation software but will now have more choice about how they pull it all together.


VMWare escapes the doldrums

doldrumsVMware has been stuck in a rut lately but now appears to have escaped by posting a strong first quarter for 2018.

The outfit has made $1.74 billion which was nine percent more than Q1 2016, and posting a GAAP net income of $232 million, up from Q1 2016’s $161 million.

VMware has adopted Dell’s financial calendar and therefore counted January 2017 as a discrete “stub”. The Q1 2018 numbers refer to February to April, while the 2016 numbers cover January to March of that year. The company had revenue of $496 million in January, a reflection of seasonal slowness.

The company also reported that R&D costs are up 18.2 percent and billings were $1.35 billion rather than an expected $1.6 billion.

Investors remain that worried that VMware is not out of the woods yet. However, the company earnings call reveal increased guidance for both the second quarter and FY 18. It now expects $1.84-$1.89 billion next quarter, and $7.61 billion for the full year.

VMware buys Apteligent

cloud (264 x 264)VMware has written a cheque for  Apteligent, a provider of mobile application performance and monitoring technology, and plans to shove it under the bonnet of VMware’s cloud and end user management products.

Apteligent arrives with shedloads of intellectual property related to how applications operate in mobile environments which VMware wants to use to make manageability across the cloud and end-user computing more intelligent.

Apteligent automatically captures and interprets application data to provide user insights and information to help provide mobile business performance. It takes real-time event data from user flows in an application, tracks key metrics, and uses mobile ecosystem data points to help customers improve the applications.

Last year VMware acquired Arkin, a startup developer of software that lets organisations keep track of networking traffic flows and security issues in virtualised and physical environments. That technology became VMware’s vRealize network Insight, or vRN

VMware falls out with Tanium

Divorce Just Ahead SignVMware has ended its OEM relationship with the security start-up Tanium in what is turning out as an annus horribilis for the security outfit.

Both VMware and Tanium confirmed the end of the OEM relationship with their various spinners saying that the decision was mutual.

The ending appears due to conflicts related to the Tanium OEM deal payment structure and to challenges in supporting Tanium’s tricky tech. Tanium has removed VMware from its list of technology partners on its website.

VMware said the two will continue to work together in some capacity to service joint customers.

The couple have been together since June 2016 and VMware created a new offering called VMware TrustPoint. It was supposed to allow an IT administrator to monitor, discover and manage threats and vulnerabilities, and to manage end point updates and OS migrations.

It was targeted at securing endpoints and easing Windows 10 desktop migration projects.

During the honeymoon period VMware Executive Vice President and General Manager of End User Computing Sanjay Poonen praised Tanium’s “highly innovative” approach to end point management and security.

Tanium’s proprietary peer-to-peer technology lets organisations continually scan all endpoints in their global networks, finding and fixing security vulnerabilities and identifying and controlling unmanaged devices.

In fact at one point the companies were close to merging. Acquisition talks took place in late 2015. Sources said at the time that Tanium’s high valuation, combined with Dell’s $67 billion bid in October to acquire VMware parent EMC, prevented the acquisition talks from progressing further.

Tanium has had a pretty terrible year. The outfit has been hit by multiple reports of a troubled company culture. The company was slammed for exposing a client’s private network information without permission in demos. Tanium CEO Orion Hindawi has apologized for both issues in a blog post.

The outfit has seen multiple top-level executive flee in recent months including the sudden exit of CFO and COO Eric Brown in March. Tanium has replaced Brown with former Dreamworks executive Fazal Merchant. Tanium has also seen the departures of its CMO and head of sales last year, and multiple VP-level channel executives.

Tanium had been considering an initial public offering.

VMware partners rub paws as the outfit buys Wavefront

vmware-partner-link-bg-w-logoIn what is being seen as good news for VMware’s partners, the outfit has decided to buy Wavefront.

For those who came in late Wavefront, makes multi-cloud monitoring and management technology on the application level.

This is seen as good news for VMware partners who can now offer a live-streaming look at all of the data from the cloud and from the applications in the cloud including user behaviour.

It can also handle a multi-cloud strategy to turn VMware into a cross-cloud management platform.

It should reassure customers about the risk of their cloud based strategy. VMware is effectively claiming to be able to monitor that entire cloud application delivery experience right down to the end-user behaviour.

VMware revealed its plan to acquire the Palo Alto, Calif.-based startup Wednesday. Wavefront, named to CRN’s 10 Coolest Big Data Startups of 2016, develops a cloud-hosted, real-time analytics platform that monitors and manages cloud applications. It provides monitoring to optimise clouds and modern applications by delivering insight using millions of data points per second in real time.

Wavefront’s metric monitoring for applications complements VMware’s vRealize Operations platform for monitoring, troubleshooting and capacity planning across virtual environments, according to VMware. Wavefront also will complement VMware’s vRealize Network Insight and vRealize Log Insight products.

Ajay Singh, senior vice president and general manager of VMware’s Cloud Management Business Unit claimed that VMware set the standard for monitoring virtual environments with VMware vRealize Operations platform, and will set the standard for cross-cloud and modern application monitoring with Wavefront.