Tag: vmware

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.

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.

 

 

VMware increases NSX price

vmware-partner-link-bg-w-logoVMware has been having a few problems with its bottom line lately and it seems it is taking it out on its NSX prices.

The outfit has cut the product’s feature list to offer cheaper versions which do not cost as much as the full product but it has also jacked up the price of the top version of the product.

The more expensive product is aimed at companies wanting to create software defined data centres, which is a lucrative area.  NSX slips networking and security into the hypervisor and could be a good product for resellers to sell.

Now however it is getting a pricy option. A full NSX license cost US$6,000 per CPU socket although the cut down packages might be a little more viable. NSX Enterprise costs at $6,995 per CPU socket; Standard will cost $1,995 per CPU socket; and Advanced will cost $4,495 per CPU socket.

Advanced and Enterprise also get more license options. All three are available on a perpetual license; Advanced can also be licensed on a per-user basis, and Enterprise adds a per-VM licensing option.

VMware share drop hurts Dell’s EMC bid

Michael DellTin box shifter Michael Dell is warning investors that the $14 billion drop in the market capitalisation of VMware is playing havoc with his attempt to get cash for EMC.

A Dell spokesman said the total value of the blockbuster acquisition has dropped by about $10 billion from its original $67 billion, to $57 billion.

In an SEC filing, Dell noted that “the market value” of the VMware tracking stock has “declined, thereby reducing the implied value of the stock portion of the merger consideration”.

On October 9, the last business day before the Dell-EMC announcement was made, VMware, 80 percent of which is owned by EMC, had a market capitalisation of $33.2 billion and a stock price of $78.65 a share. Now, its market cap is about $19.2 billion, and its stock price is hovering around $45.54.

A Dell spokesman said the EMC acquisition price of $24.05 per share was “locked, that doesn’t move, but because VMware has moved down, the value of the portion of the merger consideration linked with the tracker is going to be in that range of decline”. Whatever that means.

Avaya creates midmarket channel programme

avaya logo Avaya has started a new midmarket programme for a ‘limited number’ of Avaya Connect channel partners.

The imaginatively titled Avaya Midmarket Select Programme enable partners to offer Select Engagement Packages of services and products specifically aimed at the midmarket.

Avaya has been worried that the midmarket has been tricky – particularly when it comes to Unified Communications. Fully integrated solutions, which rely hardware and software sit at one end of the market while cloud only packages are parked at the other with little for the middle ground.

Avaya says that it already has more than a dozen channel partners already signed up in the US, Canada and Europe, and has now opened the programme to others. Partners must meet requirements for training, expertise, business plans and growth targets.

The company said that the programme will dramatically reduce the total cost of ownership (TCO) for purchasing, deploying and supporting midmarket solutions.

The packages offers a complete stack of enterprise-class solutions such as unified communications, contact centre, video, networking, mobility, and professional services.

Avaya’s roots are in proprietary hardware, but it appears to be successfully using commodity hardware and standards-based software. It recently launched it’s own software-defined networking architecture earlier this year, rivalling solutions from both Cisco and VMware.

EMC staff “making stuff up” about Dell sale

pinocchioA furious EMC president of global sales Bill Scannell told his sales teams to stop making stuff up about the company’s coming merger with Dell.

According to Channelnomics  Scannell told his staff not to “veer from the script” after the $67 billion acquisition by Dell was announced earlier this month. He slammed some of his staff for saying the wrong thing to customers.

He said that he had seen a couple of things happening in the field where people are veering from the script and kind of making things up.

“That’s not healthy, that’s not going to allow us to make this a painless and very successful merger… Understand what you can and can’t say now prior to the closing, realising this could be another six to nine months before we get the regulatory approvals and the shareholders’ sign-off to do this merger.”

Scannell told his staff to focus on quarterly business and exceeding customers’ expectations. They needed to sure they understand what we’ve said publicly about this acquisition and that it is all is going to be great.

If the deal goes ahead, EMC will go private but VMware – in which it owns an 80 per cent stake – will remain a publicly listed company.  This means that EMC will not have to worry about shipping products at the end of the quarter to make the quarterly revenue numbers.

This is going to have huge impact on savings from inventory with EMC, Scannell said.

VMware expands AirWatch channel

vmware-partner-link-bg-w-logoVMware wants to have 500 partners for its AirWatch channel.

AirWatch is the mobile management and security firm VMware bought for $1.55 billion. It had only let partners get their hands on it in the second half of last year.

This had miffed some of VMware’s resellers who had muttered to the company that they would like to sell it.

While it is unclear why this was the case, VMware is more than making up for it John Churchhouse, VMware’s EMEA SMB director, said he is targeting heavy recruitment of resellers for AirWatch.

At the moment VMWare has 120 partners focused around mobility solutions, and it wants to get it to 500 in 2016, as a minimum requirement, he said.

These partners were mainly going to be from within the existing VMware partner base, and on the whole it would be resellers focused around SMB and mid-market.

VMware is also increasing its AirWatch reseller rewards based around something it has dubbed a Power Play. A Power Play with VMware is chosen every six months, and it aligns all of the resources in terms of marketing and a partner perspective to drive that Power Play.

VMWare sued for GPL violations

VMWare has beenrms-meets-open-sauce-detail (1) sued in Hamburg for failing to comply with Open Source rules.

The Software Freedom Conservancy said that Christoph Hellwig’s lawsuit against VMware has started in the district court of Hamburg.

In a statement the Conservancy said that it was a regretful but necessary next step in both Hellwig and Conservancy’s ongoing effort to convince VMware to comply properly with the terms of the GPLv2.

For those who came in late, GPLv2 is the licence of Linux and many other Open Source and Free Software included in VMware’s ESXi products.

Hellwig is a key Linux kernel developer and one of the earliest members of Conservancy’s GPL Compliance Project for Linux Developers. He has been muttering about VMware’s misuse of GPL-licensed code since 2007.

In 2011, Conservancy discovered that VMware had failed to provide nor offer any source code for the version of BusyBox included in VMware’s ESXi products (as required by BusyBox’s licence, GPLv2).

Hellwig joined Conservancy’s GPL Compliance for Linux Developers in late 2012 and helped provide an analysis of the non-compliant releases of ESXi that VMware provided.

The conservancy said that it became apparent that VMware’s current ESXi products infringed many of Hellwig’s own copyrights, due to VMware’s failure to comply with Linux’s licence, GPLv2.

But VMware’s legal counsel finally informed Conservancy in 2014 that VMware had no intention of ceasing their distribution of proprietary-licensed works derived from Hellwig’s and other kernel developers’ copyrights, despite the terms of GPLv2.

The Conservancy and Hellwig claim that VMware has combined copyrighted Linux code, licensed under GPLv2, with their own proprietary code called “vmkernel” and distributed the entire combined work without providing nor offering complete, corresponding source code for that combined work under terms of the GPLv2.

Hellwig is an extensive copyright holder in the portions of Linux that VMware misappropriated and used together in a single, new work without permission.

VMware expands channel programme

vmware-partner-link-bg-w-logoVMware has announced new programs and other initiatives for its partner network.

The announcement, made at this week’s VMware Partner Exchange 2015, is tied to the outfit’s cunning plan to push “business transformation in the mobile cloud era”.

The VMware Partner Professional Services Programme will let  consulting partners to sell and deliver their own services. Partners will have free access to experienced software-defined data centre architects and experts.   They will also get access to customer-focused labs along with training discounts, the company said.

The scheme is only available to a limited number of pilot partners in the first half of fiscal 2015, the program is expected to expand in the second half of the year.

VMware has been expanding its VMware vCloud Air Network Programme to include managed services opportunities for vCloud Air Network service providers.  This will enable partners to use VMware vCloud Air as their core infrastructure while providing differentiation through their managed services. This gives partners more flexibility in how to build and offer cloud solutions. The new managed services model will be available in the second quarter to qualified service providers.