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Tag: VMware

Once VMware is free from Dell, who might fancy buying it?

April 18, 2021 No Comments

TechCrunch has spilled much digital ink tracking the fate of VMware since it was brought to Dell’s orbit thanks to the latter company’s epic purchase of EMC in 2016 for $ 58 billion. That transaction saddled the well-known Texas tech company with heavy debts. Because the deal left VMware a public company, albeit one controlled by Dell, how it might be used to pay down some of its parent company’s arrears was a constant question.

Dell made its move earlier this week, agreeing to spin out VMware in exchange for a huge one-time dividend, a five-year commercial partnership agreement, lots of stock for existing Dell shareholders and Michael Dell retaining his role as chairman of its board.

So, where does the deal leave VMware in terms of independence, and in terms of Dell influence? Dell no longer will hold formal control over VMware as part of the deal, though its shareholders will retain a large stake in the virtualization giant. And with Michael Dell staying on VMware’s board, it will retain influence.

Here’s how VMware described it to shareholders in a presentation this week. The graphic shows that under the new agreement, VMware is no longer a subsidiary of Dell and will now be an independent company.

Chart showing before and after structure of Dell spinning out VMware. In the after scenario, VMware is an independent company.

Image Credits: VMware

But with VMware tipped to become independent once again, it could become something of a takeover target. When Dell controlled VMware thanks to majority ownership, a hostile takeover felt out of the question. Now, VMware is a more possible target to the right company with the right offer — provided that the Dell spinout works as planned.

Buying VMware would be an expensive effort, however. It’s worth around $ 67 billion today. Presuming a large premium would be needed to take this particular technology chess piece off the competitive board, it could cost $ 100 billion or more to snag VMware from the public markets.

So VMware will soon be more free to pursue a transaction that might be favorable to its shareholders — which will still include every Dell shareholder, because they are receiving stock in VMware as part of its spinout — without worrying about its parent company simply saying no.


Enterprise – TechCrunch


VMware files suit against former exec for moving to rival company

January 4, 2021 No Comments

Earlier this month, when Nutanix announced it was hiring former VMware COO Rajiv Ramaswami as CEO, it looked like a good match. What’s more, it pulled a key player from a market rival. Well, it seems VMware took exception to losing the executive, and filed a lawsuit against him yesterday for breach of contract.

The company is claiming that Ramaswami had inside knowledge of the key plans of his former company and that he should have told them that he was interviewing for a job at a rival organization.

Rajiv Ramaswami failed to honor his fiduciary and contractual obligations to VMware. For at least two months before resigning from the company, at the same time he was working with senior leadership to shape VMware’s key strategic vision and direction, Mr. Ramaswami also was secretly meeting with at least the CEO, CFO, and apparently the entire Board of Directors of Nutanix, Inc. to become Nutanix’s Chief Executive Officer. He joined Nutanix as its CEO only two days after leaving VMware,” the company wrote in a statement.

As you can imagine, Nutanix didn’t agree, countering in a statement of its own that, “VMware’s lawsuit seeks to make interviewing for a new job wrongful. We view VMware’s misguided action as a response to losing a deeply valued and respected member of its leadership team. Mr. Ramaswami and Nutanix have gone above and beyond to be proactive and cooperative with VMware throughout the transition.”

At the time of the hiring, analyst Holger Mueller from Constellation Research noted that the two companies were primary competitors and hiring Ramawami was was a big win for Nutanix. “So hiring Ramaswami brings both an expert for multicloud to the Nutanix helm, as well as weakening a key competitor from a talent perspective,” he told me earlier this month.

Mueller doesn’t see much chance of the suit succeeding. “It’s been a long time since the last lawsuit happened in Silicon Valley [involving] a tech exec jumping ship. Being an ’employment at will’ state, these suits are typically unsuccessful,” he told me this morning.

He added, “The interesting part of the VMware v. Nutanix lawsuit is, does a high-ranking executive interviewing with a competitor equal a break of confidentiality by itself, or does material information have to be breached to reach the point. Traditionally the right to (confidentially) interview has been protected by the courts,” he said.

It’s unclear what the end game would be in this type of legal action, but it does complicate matters for Nutanix as it transitions to a new chief executive. Ramaswami took over from co-founder Dheeraj Pandey, who announced plans to leave the post last summer.

The lawsuit was filed Monday in Superior Court of the State of California, County of Santa Clara.


Enterprise – TechCrunch


Nutanix brings in former VMware exec as new CEO

December 10, 2020 No Comments

Nutanix announced today that it was bringing in former VMware executive Rajiv Ramaswami as president and CEO. Ramaswami replaces co-founder Dheeraj Pandey, who announced his plans to retire in August.

The new CEO brings 30 years of industry experience to the position, including stints with Broadcom, Cisco, Nortel and IBM — in addition to his most recent gig at VMware as chief operating officer of Products and Cloud Services.

At his position at VMware, Ramaswami had the opportunity to see Nutanix up close as a key competitor, and he now has the opportunity to lead the company into its next phase. “I have long admired Nutanix as a formidable competitor, a pioneer in hyperconverged infrastructure solutions and a leader in cloud software,” he said in a statement. He hopes to build on his industry knowledge to continue growing the company.

Sohaib Abbasi, lead independent director of Nutanix, says that as a candidate, Ramaswami’s experience really stood out. “Rajiv distinguished himself among the CEO candidates with his rare combination of operational discipline, business acumen, technology vision and inclusive leadership skills,” he said in a statement.

Holger Mueller, an analyst at Constellation Research, says the hiring makes a lot of sense, as VMware is quickly becoming the company’s primary competitor. “Nutanix and VMware want to be the same in the future — the virtualization and workload portability Switzerland across cloud and on premise compute infrastructures,” he told me.

What’s more, it allows Nutanix to grab a talented executive. “So hiring Ramaswami brings both an expert for multi-cloud to the Nutanix helm, as well as weakening a key competitor from a talent perspective,” he said.

Nutanix was founded in 2009. It raised more than $ 600 million from firms like Khosla Ventures, Lightspeed Ventures, Sapphire Ventures, Fidelity and Wellington Management, according to Crunchbase data. The company went public in 2016. Investors seem pleased by the announcement, with the company stock price up 1.29% as of publication.


Enterprise – TechCrunch


Daily Crunch: VMware completes Pivotal acquisition

December 30, 2019 No Comments

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. VMware completes $ 2.7 billion Pivotal acquisition

VMware is closing the year with a significant new weapon in its arsenal. (I restrained myself from using a “pivotal” pun here. You’re welcome.)

The acquisition — first announced in August — helps the company in its transformation from a pure virtual machine supplier into a cloud native vendor that can manage infrastructure wherever it lives. It fits alongside the acquisitions of Heptio and Bitnami, two other deals that closed this year.

2. Spotify to ‘pause’ running political ads, citing lack of proper review

The company told us that starting early next year, it will stop selling political ads: “At this point in time, we do not yet have the necessary level of robustness in our processes, systems and tools to responsibly validate and review this content.”

3. ‘The Mandalorian’ returns for Season 2 on Disney+ in fall 2020

The last episode of the first season of “The Mandalorian” went live on Disney+ on Friday, and showrunner Jon Favreau wasted very little time confirming when we can expect season two of the smash hit to land: next fall.

4. 2019 Africa Roundup: Jumia IPOs, China goes digital, Nigeria becomes fintech capital

The last 12 months served as a grande finale to 10 years that saw triple-digit increases in startup formation and VC on the continent. Here’s an overview of the 2019 market events that capped off a decade in African tech.

5. Maxar is selling space robotics company MDA for around $ 765 million

Maxar’s goal in selling the business is to help alleviate some of its considerable debt. The purchasing entity is a consortium of companies led by private investment firm Northern Private Capital, which will acquire the entirety of MDA’s Canadian operations — responsible for the development of the Canadarm and Canadarm2 robotic manipulators used on the Space Shuttle and the International Space Station, respectively.

6. Cloud gaming is the future of game monetization, not gameplay

Lucas Matney argues that as is so often the case with the next big thing in tech, cloud streaming is much more likely to become the next big feature of a more traditional platform, rather than the entire platform itself. (Extra Crunch membership required.)

7. This week’s TechCrunch podcasts

Equity took the week off, but we kept Original Content going with a review of Netflix’s new fantasy show “The Witcher.”


Enterprise – TechCrunch


VMware is bringing VMs and containers together, taking advantage of Heptio acquisition

August 26, 2019 No Comments

At VMworld today in San Francisco, VMware introduced a new set of services for managing virtual machines and containers in a single view called Tanzu. The product takes advantage of the knowledge the company gained when it acquired Heptio last year.

As companies face an increasingly fragmented landscape of maintaining traditional virtual machines, alongside a more modern containerized Kubernetes environment, managing the two together has created its own set of management challenges for IT. This is further complicated by trying to manage resources across multiple clouds, as well as the in-house data centers. Finally, companies need to manage legacy applications, while looking to build newer containerized applications.

VMware’s Craig McLuckie and fellow Heptio co-founder, Joe Beda, were part of the original Kubernetes development team They came to VMware via last year’s acquisition. McLuckie believes that Tanzu can help with all of this by applying the power of Kubernetes across this complex management landscape.

“The intent is to construct a portfolio that has a set of assets that cover every one of these areas, a robust set of capabilities that bring the Kubernetes substrate everywhere — a control plane that enables organizations to start to think about [and view] these highly fragmented deployments with Kubernetes [as the] common lens, and then the technologies you need to be able to bring existing applications forward and to build new application and to support third party vendors bringing their applications into [this],” McLuckie explained.

It’s an ambitious vision that involves bringing together not only VMware’s traditional VM management tooling and Kubernetes, but also open source pieces and other recent acquisitions including Bitnami and Cloud Health along with Wavefront, which it acquired in 2017. Although the vision was defined long before the acquisition of Pivotal last week, it will also play a role in this. Originally that was as a partner, but now it will be as part of VMware.

The idea is to eventually cover the entire gamut of building, running and managing applications in the enterprise. Among the key pieces introduced today as technology previews are the Tanzu Mission Control, a tool for managing Kubernetes clusters wherever the live and Project Pacific, which embeds Kubernetes natively into VSphere, the company’s virtualization platform, bringing together virtual machines and containers.

Screenshot 2019 08 26 08.07.38 1

VMware Tanzu. Slide: VMware

McLuckie sees bringing virtual machine and Kubernetes together in this fashion provides a couple of key advantages. “One is being able to bring a robust, modern API-driven way of thinking about accessing resources. And it turns out that there is this really good technology for that. It’s called Kubernetes. So being able to bring a Kubernetes control plane to Vsphere is creating a new set of experiences for traditional VMware customers that is moving much closer to a kind of cloud-like agile infrastructure type of experience. At the same time, Vsphere is bringing a whole bunch of capabilities to Kubernetes that’s creating more efficient isolation capabilities,” he said.

When you think about the cloud native vision, it has always been about enabling companies to manage resources wherever they live through a single lens, and this is what this set of capabilities that VMware has brought together under Tanzu, is intended to do. “Kubernetes is a way of bringing a control metaphor to modern IT processes. You provide an expression of what you want to have happen, and then Kubernetes takes that and interprets it and drives the world into that desired state,” McLuckie explained.

If VMware can take all of the pieces in the Tanzu vision and make this happen, it will be as powerful as McLuckie believes it to be. It’s certainly an interesting attempt to bring all of a company’s application and infrastructure creation and management under one roof using Kubernetes as the glue, and with Heptio co-founders McLuckie and Beda involved, it certainly has the expertise in place to drive the vision.


Enterprise – TechCrunch


How Pivotal got bailed out by fellow Dell family member, VMware

August 24, 2019 No Comments

When Dell acquired EMC in 2016 for $ 67 billion, it created a complicated consortium of interconnected organizations. Some, like VMware and Pivotal, operate as completely separate companies. They have their own boards of directors, can acquire companies and are publicly traded on the stock market. Yet they work closely within Dell, partnering where it makes sense. When Pivotal’s stock price plunged recently, VMware saved the day when it bought the faltering company for $ 2.7 billion yesterday.

Pivotal went public last year, and sometimes struggled, but in June the wheels started to come off after a poor quarterly earnings report. The company had what MarketWatch aptly called “a train wreck of a quarter.”

How bad was it? So bad that its stock price was down 42% the day after it reported its earnings. While the quarter itself wasn’t so bad, with revenue up year over year, the guidance was another story. The company cut its 2020 revenue guidance by $ 40-$ 50 million and the guidance it gave for the upcoming 2Q 19 was also considerably lower than consensus Wall Street estimates.

The stock price plunged from a high of $ 21.44 on May 30th to a low of $ 8.30 on August 14th. The company’s market cap plunged in that same time period falling from $ 5.828 billion on May 30th to $ 2.257 billion on August 14th. That’s when VMware admitted it was thinking about buying the struggling company.


Enterprise – TechCrunch


VMware announces intent to buy Avi Networks, startup that raised $115M

June 15, 2019 No Comments

VMware has been trying to reinvent itself from a company that helps you build and manage virtual machines in your data center to one that helps you manage your virtual machines wherever they live, whether that’s on prem or the public cloud. Today, the company announced it was buying Avi Networks, a six-year-old startup that helps companies balance application delivery in the cloud or on prem in an acquisition that sounds like a pretty good match. The companies did not reveal the purchase price.

Avi claims to be the modern alternative to load balancing appliances designed for another age when applications didn’t change much and lived on prem in the company data center. As companies move more workloads to public clouds like AWS, Azure and Google Cloud Platform, Avi is providing a more modern load-balancing tool, that not only balances software resource requirements based on location or need, but also tracks the data behind these requirements.

Diagram: Avi Networks

VMware has been trying to find ways to help companies manage their infrastructure, whether it is in the cloud or on prem, in a consistent way, and Avi is another step in helping them do that on the monitoring and load-balancing side of things, at least.

Tom Gillis, senior vice president and general manager for the networking and security business unit at VMware sees, this acquisition as fitting nicely into that vision. “This acquisition will further advance our Virtual Cloud Network vision, where a software-defined distributed network architecture spans all infrastructure and ties all pieces together with the automation and programmability found in the public cloud. Combining Avi Networks with VMware NSX will further enable organizations to respond to new opportunities and threats, create new business models, and deliver services to all applications and data, wherever they are located,” Gillis explained in a statement.

In a blog post,  Avi’s co-founders expressed a similar sentiment, seeing a company where it would fit well moving forward. “The decision to join forces with VMware represents a perfect alignment of vision, products, technology, go-to-market, and culture. We will continue to deliver on our mission to help our customers modernize application services by accelerating multi-cloud deployments with automation and self-service,” they wrote. Whether that’s the case, time will tell.

Among Avi’s customers, which will now become part of VMware, are Deutsche Bank, Telegraph Media Group, Hulu and Cisco. The company was founded in 2012 and raised $ 115 million, according to Crunchbase data. Investors included Greylock, Lightspeed Venture Partners and Menlo Ventures, among others.


Enterprise – TechCrunch


VMware acquires Bitnami to deliver packaged applications anywhere

May 16, 2019 No Comments

VMware announced today that it’s acquiring Bitnami, the package application company that was a member of the Y Combinator Winter 2013 class. The companies didn’t share the purchase price.

With Bitnami, the company can now deliver more than 130 popular software packages in a variety of formats, such as Docker containers or virtual machine, an approach that should be attractive for VMware as it makes its transformation to be more of a cloud services company.

“Upon close, Bitnami will enable our customers to easily deploy application packages on any cloud — public or hybrid — and in the most optimal format — virtual machine (VM), containers and Kubernetes helm charts. Further, Bitnami will be able to augment our existing efforts to deliver a curated marketplace to VMware customers that offers a rich set of applications and development environments in addition to infrastructure software,” the company wrote in a blog post announcing the deal.

Per usual, Bitnami’s founders see the exit through the prism of being able to build out the platform faster with the help of a much larger company. “Joining forces with VMware means that we will be able to both double-down on the breadth and depth of our current offering and bring Bitnami to even more clouds as well as accelerating our push into the enterprise,” the founders wrote in a blog post on the company website.

Holger Mueller, an analyst at Constellation Research says the deal fits well with VMware’s overall strategy. “Enterprises want easy, fast ways to deploy packaged applications and providers like Bitnami take the complexity out of this process. So this is a key investment for VMware that wants to position itselfy not only as the trusted vendor for virtualizaton across the hybrid cloud, but also as a trusted application delivery vendor,” he said.

The company has raised a modest $ 1.1 million since its founding in 2011 and says that it has been profitable since early days when it took the funding. In the blog post, the company states that nothing will change for customers from their perspective.

“In a way, nothing is changing. We will continue to develop and maintain our application catalog across all the platforms we support and even expand to additional ones. Additionally, if you are a company using Bitnami in production, a lot of new opportunities just opened up.”

Time will tell whether that is the case, but it is likely that Bitnami will be able to expand its offerings as part of a larger organization like VMware. The deal is expected to close by the end of this quarter (which is fiscal Q2 2020 for VMware).

VMware is a member of the Dell federation of products and came over as part of the massive $ 67 billion EMC deal in 2016. The company operates independently, is sold as a separate company on the stock market and makes its own acquisitions.


Enterprise – TechCrunch


Dell confirms it’s considering combining with VMware and other options in SEC filing

February 3, 2018 No Comments

 This morning, Dell confirmed previously published reports in an SEC filing, that it is considering various options to possibly reorganize itself. Reports emerged last week suggesting the Dell board was planning a meeting to discuss options for dealing with the enormous debt it took on when it acquired EMC in 2015 for $ 67 billion. The SEC filing confirmed earlier reports that it was… Read More
Enterprise – TechCrunch


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