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July 08, 2008

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Daniel Eason

Chad,

Great read, the news comes of no surprise to myself. If you honestly need to grow as a company into something unprecidented compared to your competitors you need more experience, this is the case in any business.

It's a shame DG couldnt have been made chairman or CIO/CTO just to keep customers coming in knowing that the founder still has an influence.

It is a sad day for Vmware's heritage but I am sure that in a few years time that this saga will more than be forgotten!

Dan

Marty

Chad: "Paul Moritz is getting characterized by some as "an EMC guy"."

I'm not sure what Paul has been doing since his company was acquired by EMC, but what else would you call him? It's not like he's been unemployed recently!


"The board decided that for the next stage of growth of VMware to $2B and beyond, new leadership was needed - and this is very common as companies grow through stages of life."

It's not readily apparent to the rest of us why Diane was not capable of doing this. It looks like she was a scapegoat for the profit forecast downgrade, but in case no one has noticed the USA economy is at a standstill (if not in recession).


"Great companies are about more than any one person."

Agreed, but the CEO is such a high visibility position that the public and the markets place such a heavy emphasis on. This spill doesn't have the appearance of clean, tidy and warranted. The VMware board should have done a much better job of making the case for change.

Terry

The ousting of Diane Green reminds me of what the Mets did to Willie Randolph. Can't we all just get along.. Was Joe afraid that Intel was going to acquire VMware? Does Joe think a former MSFT exec will know how to go to market better against his former employer?

Was this a strategic or tactical move?

It's funny you mention cloud computing, since this was an area Paul was focusing on. This is an area VMware needs to research heavily in as compute cycles will eventually be a commodity just like electricty. Hopefully the OVF format will be something all virtualization vendors will adopt as it makes the most sense in the CC space.

BTW, it's Maritz and not Mortiz. ;)

Chad Sakac

Terry - thanks for the comment.

I've said it before, and I'll say it again - I think that where people see complex machinations and people operating with multiple shadow motives, while SOMETIMES that's the case - far more often it's one level deep, and the simple truth is the truth (though far less fun)

I will tell you that both VMware and EMC are thinking about the cloud model (whether the CPU cycles/Memory commodity you are using are in a cloud in your building or a cloud on the internet) and all the implications it can and will have on all our technology, customers, and busnesses.

Heck - I export all my VM's as OVFs - it still needs some work - import makes everything eagerzeroedthick (yuck), and has more limited Guest OS support - but I think there's a lot to come on that front.

At EMC, all the product teams have been been put on notice - every product must be made available as a Virtual Appliance, and we're commited to staying in sync with VMware's Virtual Appliance standards and programs.

Thank's for the correction on my vowels - I better get it straight in my gig :-)

Keith

Chad,

Nice insight. I suspect more asperation from the board and Joe around progression towards cloud computing. Operations at large scale? Sure and that's cute but the real jewel that scales the demand; cloud. Move from the OS of the "new house" datacenter to the Cloud OS and tools... hello! I hope he has mojo.

Chad Sakac

One quick one (just because a customer in Baltimore brought this up to me this week as we were discussing the whole saga) - on the "how can you not characterize Paul Maritz as an 'EMC guy'?"....

The acquisition of PI happened in Feb - http://www.reuters.com/article/pressRelease/idUS250001+21-Feb-2008+PRN20080221

I mean, that's so recent, it's even worth pointing out it was Feb **21st**. I don't know about you folks, but to me, it feels like I blinked, and it was 5 months ago.

The customer mentioned that PI was acquired 14 months ago - heck even that wouldn't have been enough time to be "EMC indoctrinated :-)"

It did turn out (either by big conspiracy theory, or by lucky circumstance) that Paul was available when the VMware board decided it was time to make the change - but an "EMC guy" - I dunno, it just doesn't seem that way to me (though I guess I can see how people may come to that conclusion).

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