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VMworld 2016: VMware remains "stable" amidst "turbulent waters"

VMworld 2016: VMware remains "stable" amidst "turbulent waters"

Says VMware is ahead of the curve

Pat Gelsinger - CEO, VMware

Pat Gelsinger - CEO, VMware

VMware is moving ahead of its competitors as its transition strategy takes shape, with CEO, Pat Gelsinger, believing that the upcoming Dell-EMC merger will only add to the vendor's growth spurt.

“Obviously, there are so many products and activities going on," he said.

"We’re getting the bigger and more transformative customers – some of them, I’m not so happy with and some of them, I’m pleasantly surprised. But a company this big, we’re doing well."

Gelsinger explained further that the Dell-EMC merger has given VMware a huge part of the marketplace to play in.

“It gives us a chance to ramp up in many verticals as a result of Dell’s presence there," he added.

"As we talk about the synergy, it’s now about how we set the right selling motion to satisfy the various markets.”

For Gelsinger, markets where VMware is lacking penetration yet Dell is represents "unique opportunities" for the company, which works vice-versa as well.

“We continue to be independent," he added. "Our ecosystem that we have established does not change and we’re going to support the diverse co-opetition aspect and accelerate into markets.

"We have a very rich balance sheet and we know our direction in future. We’re very stable for what will be turbulent waters for many companies as we go forward."

Gelsinger elaborated on the slight shift in the company direction with the growth and development of the Cloud, adding that enterprise customers wanting a particular strategy has also led to this change.

“Hardware freedom has become part of the IT strategy of customers – we either have to realise it and give them what they want or ignore it," he added. "What we did was give them Cloud freedom.

“The foundation for Cloud is now laid. So, we’ve enabled more choices, more tooling, more ability for these public Clouds that are emerging. That’s what our Cross-Cloud Architecture is about."

VMware crossed over to this strategy in 2014 when vSphere was less than half its business and it realised the perpetual software business was the perfect model for it from a cash-flow perspective.

“The VMware strategy in that is to find as many ways as possible to enable our partners because they represent billions in revenue.

“Through those partners, a lot of it is going into the managed Cloud space, especially within managed Cloud. And this is a huge VMware footprint for them. So we see our enabling strategy having good resonance and success.”

According to Gelsinger, these partners will be able to secure, connect and network the Cloud and this changes how they think about their strategy and the broad set of private, public, and hybrid Cloud offerings.

“There are three categories of customers that will benefit from this – those that are hardcore VMware partners that become more relevant as we move forward, those that are challenged to get out of the hardware business, and the multi-Cloud customer that see our pieces as part of their strategy,” he mentioned.

VMware A/NZ business mobility and EUC head, Shankar Iyer, spoke about the company’s approach to end user computing and mobility, saying that VMware has caught on and surpassed Citrix in this landscape.

“Our end user journey over the last few years has been spectacular. We started off in the space of virtual desktops and have strengthened the portfolio significantly.

“But with end user computing, there’s no one key play for success. A couple of years ago, we were behind Citrix. Now, we are ahead of it in a number of cases. We can support a number of topologies and models and we do things well,” he said.

The business will be holding on to these two strengths and the story this year is expanding significantly to this value proposition.

“Our business has expanded with all these dimensions and there are a lot of customers embracing this platform,” he said.

Iyer also said the opportunities for distributors and resellers are large as it’s no longer about technology but rather, about solving business needs.

“For VARs, that’s bigger prospects as they can offer services to implement, install and manage. With Dell, it is a great OEM play.”

Hafizah Osman attended VMworld 2016 as a guest of VMware.


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