Tag Archive for VMW

VMware Jumped the Shark

VMware Jumped the SharkWikipedia says an organization has jumped the shark when it uses an out of character gimmick in an attempt to generate new publicity. The phrase “jump the shark” evolved from a 1977 episode of Happy Days, in which Fonzie jumps over a shark while on water skis. The Free Encyclopedia says this gimmick strayed absurdly outside the original storyline of the sitcom. 

VMware logoVMware (VMW) has jumped the shark. The virtualization giant now has its own anthem. The VMware anthem performed by The Viarengo Band is set to Steppenwolf’s 1968 hit Born to be Wild. The song was most famously featured in the 1969 film Easy Rider.

Dell Technologies (DELL) stablemate EMC (EMC) jumped the shark in 2011. The storage provider staged an event where motorcycle daredevil Bubba Blackwell jumped over a parking lot of EMC Symmetrix storage units.

 

Stay safe out there !

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

VMware Spinoff

VMware SpinoffThe rumor mill got it right again. On Wednesday 04/15/2021 Dell Technologies confirmed the long speculated plans to spinoff VMware. The VMware spinoff will create two standalone public companies. Dell will continue to trade on the NYSE as DELL and VMware will trade as VMW.

Cash dividend of up to $12 billionThe deal includes a VMware cash dividend of up to $12 billion to all VMware shareholders, including Dell Technologies. Dell owns an 81% stake in VMware. Dell took over VMware when it acquired EMC in September 2016 for $58B. The VMware spin-off could yield Dell up to $9.7 billion to pay down its long-term debt of $41.62 billion. Dell shareholders would receive 0.44 shares of VMware for each Dell share that they hold as of 04/14/2021.

VMware spinoff

TechCrunch observes that the VMware spinoff will not be a clean break. The companies will continue to work closely together at least for another five years. VMware plans to sell its products through the Dell sales team. Dell Financial Services will continue to finance VMware deals. Finally, there is a formalized governance process in place related to achieving the commercial goals under the agreement.

VMware spinoff will not be a clean breakThe VMware spinoff is expected to close during the fourth quarter of calendar 2021, pending a favorable IRS ruling. TechCrunch says  That includes getting a favorable ruling from the IRS that the deal qualifies for a tax-free spin-off, would be a considerable hurdle for the deal.

VMware spinoff changes at the top

Dell Technologies founder and CEO Michael Dell will continue to lead the PC giant. He will also remain chairman of VMware’s board.Mr. Dell said in CEO-speak;

Dell logoBy spinning off VMware, we expect to drive additional growth … and unlock significant value for stakeholders. Both companies will remain important partners … differentiated advantage in how we bring solutions to customers … embrace new opportunities through an open ecosystem …

Zane Rowe will remain interim CEO of VMware, as the virtualization company continues to evaluate permanent CEO options to succeed Pat Gelsinger — who left the virtualization juggernaut for Chipzilla earlier this year.

Zane Rowe interim CEO of VMwareMr. Rowe told Reuters the spinoff could also allow VMware to strike more partnerships with major cloud computing providers. “This will clearly give us a lot of flexibility strategically to do more partnerships.”  The VMware spinoff will allow the independent firm to pursue deals with Amazon and Microsoft, which are Dell’s primary technology competitors.

Dell financial maneuvers

Founded in 1984, Dell initially went public in 1988. Through a record-breaking leveraged buyout Dell returned to private ownership under Michael Dell in 2013. After buying EMC in 2016, Dell again undertook a complex financial move to become public again to help the company raise funds.

VMware

VMware logoVMware was founded in 1998 and acquired by EMC in 2004. EMC sold part of its stake in an initial public offering in 2007. EMC’s holdings in VMware passed to Dell when it acquired EMC in 2016 in the largest successful acquisition in the technology industry.

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In another effort to slim down the company, Dell is exploring options to selling its Boomi cloud business for $3 billion. Dell Technologies sold Boomi for about $4 billion. The proceeds should help Dell reduce its debt. The data integration company is being purchased by the investment firm Francisco Partners along with the private equity firm TPG Capital. The sale is expected to close by the end of 2021.

Boomi provides a cloud-based integration platform as a service (iPaaS) for more than 15,000 customers. Dell acquired Boomi in 2010.

Stay safe out there!

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

HPE Been Busy

HPE Been BusyHP (HPQ) has been busy since it divorced itself and spawned HP Enterprise and HP Inc. There has been more enterprise activity in the past month than in the past years, as the spun-out HP Enterprise (HPE) side of the tech megalith tries to make a more relevant name for itself.

HPE layoffs

HP Enterprise logoFirst, Tim Stonesifer the CFO of the new HPE says that up to another 30,000 people will be laid off. The Business Insider reports these cuts will be focused on HP’s Enterprise Services Division, the consulting arm of the company.

During CEO Meg Whitman‘s tenure, HP has let go 85,000 workers with this latest round of layoffs. And they aren’t over yet claims CIO.com. Ms. Whitman and CFO Cathie Lesjak said that HP would lay off another 5% of staff.

Michigan lawsuit

State of Michigan is suing HPMore bad news as the State of Michigan announced it is suing HP. Michigan’s Secretary of State Ruth Johnson is charging HP with failing to deliver on a $49 million contract after 10 years, according to a press release from the state.

FierceCIO reports that the project was supposed to replace a legacy mainframe system that has run 131 Secretary of State offices. However, since 2005, and after $27.5 million was paid to the company, the state said that not a single promised function was delivered. In the press release she states:

 I inherited a stalled project when I came into office in 2011 and, despite our aggressive approach to hold HP accountable and ensure they delivered, they failed … We have no choice but to take HP to court to protect Michigan taxpayers.

MichiganThe state alleged that following a set of failed negotiations over the past few months, it rescinded its contract on Aug. 28 with a termination for cause letter. The article says the state argued, according to the terms of the contract, HP was supposed to provide support services for the state for some extended period of time. The state said that, instead, HP employees stopped reporting as of Aug. 31.

HP responded to a request for comment from FierceCIO with the following email statement: “It’s unfortunate that the state of Michigan chose to terminate the contract, but HP looks forward to a favorable resolution in court.

HPE 3PAR

On the product side, HPE has updated the software that runs all of its HP 3PAR StoreServ Storage products to boost the performance of its SAN and other storage products an HP presser announced.

HP 3Par logoOne of the changes to the HP 3PAR Operating System. HP has added a new feature in the HP 3PAR Priority Optimization software. Fierce Enterprise Communications reports that the software now enables users to set specific latency goals as low as 0.5 milliseconds in the hopes of ensuring consistent performance levels in multi-tenant environments. The intention is to boost the quality of service for improved application performance.

VMware support

For data protection, HPE also added support for VMware (VMW) vSphere 6.0 with VMware Virtual Volumes to StoreOnce Recovery Manager Central for VMware. The update also includes more granular recovery of individual virtual machines and files, simplifying data recovery.

VMWareWith these changes, another Fierce Enterprise Communications article observes that HP is getting cozier in its relationship with VMware as the company unveiled new consulting and support services for VMware’s NSX SDN product.

There’s actually a laundry list of new aspects of the two companies’ partnership, according to the article. The partnership includes a variety of HP services and products that tie into different VMware software-defined data center and end-user computing products, but the networking aspect comes in the form of HP Network Virtualization Services.

Consulting The consulting and support services will be available starting in January 2016. According to an HP announcement at VMworld, the services were “designed to transform and operate the network when combining physical and virtual network resources, functionality and management to ready a network for virtualized cloud, network functions virtualization or SDI.”

HP plans to implement a novel idea by putting consulting and support services under the HP Network Virtualization Services umbrella to provide a 24/7/365 single place to connect with networking, virtualization, and NSX experts in the hopes of quickly resolving issues.

Security changes

HP Fortify logoOn the security front, HP announced new enterprise security tools that can detect communications between malware and a remote server as well as uncover bugs in enterprise software using machine learning.

The first called HP DNS Malware Analytics, uses an algorithm to detect enterprise machines infected with malware by analyzing Domain Name System traffic between the devices and remote servers according to a FierceCIO article. A one-year subscription to HP DMA starts at $80,000 to analyze up to 5 million DNS packets per day. Frank Mong, vice president of solutions at HP Security, claims, “This solves the problem of finding an infected host that has been missed by anti-virus and endpoint security”.

HP also introduced HP Fortify scan analytics, machine-learning technology, as part of HP Fortify on Demand, which uses an enterprise’s app security data to improve the accuracy and efficiency of app security. This technology integrates into existing app security testing workflows, increasing the efficiency of the app security audit process and the relevancy of findings, HP explained.

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Color me skeptical but I’m not sure that HP is the best horse for VMware to bet on in their battle with former partner Cisco (CSCO).

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.