{"id":112537,"date":"2020-02-06T20:52:15","date_gmt":"2020-02-07T01:52:15","guid":{"rendered":"http:\/\/rbach.net\/?p=112537"},"modified":"2021-08-19T12:57:28","modified_gmt":"2021-08-19T16:57:28","slug":"vmware-had-a-bad-week","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/vmware-had-a-bad-week\/","title":{"rendered":"VMware Had a Bad Week"},"content":{"rendered":"<p><strong><a href=\"https:\/\/web.archive.org\/web\/20210616133800\/https:\/\/alchemists.band\/plague-hits-the-alchemists\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-112704\" title=\"VMware Had a Bad Week\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/sickie.jpg?resize=99%2C100&#038;ssl=1\" alt=\"VMware Had a Bad Week\" width=\"99\" height=\"100\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/sickie.jpg?resize=148%2C150&amp;ssl=1 148w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/sickie.jpg?resize=75%2C75&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/sickie.jpg?w=250&amp;ssl=1 250w\" sizes=\"auto, (max-width: 99px) 100vw, 99px\" \/><\/a><a href=\"https:\/\/www.vmware.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">VMware<\/a> (<a href=\"https:\/\/www.nyse.com\/quote\/XNYS:VMW\" target=\"_blank\" rel=\"noopener noreferrer\">VMW<\/a>)<\/strong> had a bad week last week. First, a\u00a0 jury in the U.S. federal district court for the District of Delaware <a href=\"https:\/\/www.docketalarm.com\/cases\/Delaware_District_Court\/1--19-cv-00742\/Cirba_Inc._et_al_v._VMware_Inc.\/550\/\" target=\"_blank\" rel=\"noopener noreferrer\">ruled<\/a> that the virtualization giant <strong>infringed on two patents<\/strong> owned by Densify. <a href=\"https:\/\/www.densify.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Densify<\/a> is a Toronto-based startup that makes cloud and container resource management software. The ruling will <strong>cost VMware about $237 million dollars<\/strong>. Of course, VMware will appeal.<\/p>\n<p><a href=\"https:\/\/www.vmware.com\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-112692\" title=\"VMware logo\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/vmware305_0-877x432-1-e1580872592188-150x115.jpg?resize=95%2C73&#038;ssl=1\" alt=\"VMware logo\" width=\"95\" height=\"73\" \/><\/a>In an emailed <a href=\"https:\/\/www.sdxcentral.com\/articles\/news\/vmware-loses-237m-patent-infringement-lawsuit\/2020\/01\/\" target=\"_blank\" rel=\"noopener noreferrer\">statement<\/a>, to <em><a href=\"https:\/\/www.sdxcentral.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">sdxcentral<\/a><\/em> VMware <a href=\"https:\/\/www.sdxcentral.com\/articles\/news\/vmware-loses-237m-patent-infringement-lawsuit\/2020\/01\/\" target=\"_blank\" rel=\"noopener noreferrer\">wrote<\/a>, \u201c<em>VMware intend[s] to vigorously pursue all legal remedies that are available to us to prove that we are not liable here.<\/em>\u201d<\/p>\n<p>Next, it was <a href=\"https:\/\/www.channelfutures.com\/business-models\/vmware-cutting-hundreds-of-jobs-as-part-of-rebalancing\" target=\"_blank\" rel=\"noopener noreferrer\">announced<\/a> that over 200 VMware <strong>employees will lose their jobs<\/strong> as part of a &#8220;<strong><a href=\"https:\/\/www.channele2e.com\/business\/talent\/workforce-rebalancing-the-ultimate-insult-to-u-s-tech-workers\/\" target=\"_blank\" rel=\"noopener noreferrer\">workforce rebalancing<\/a><\/strong>.&#8221; <em><a href=\"https:\/\/searchservervirtualization.techtarget.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">TargetTec<\/a>h<\/em> <a href=\"https:\/\/web.archive.org\/web\/20210414025827\/https:\/\/searchservervirtualization.techtarget.com\/news\/252477550\/Limited-number-of-VMware-layoffs-announced-in-rebalancing\" target=\"_blank\" rel=\"noopener noreferrer\">noted<\/a> that IBM has historically used the same term to describe its periodic layoffs.<\/p>\n<p>In addition to workers losing their jobs, the VMware <strong>executive suite has undergone purging<\/strong> too. <a href=\"https:\/\/www.crn.com\/news\/virtualization\/vmware-layoffs-4-top-execs-are-leaving-including-vp-of-operations\" target=\"_blank\" rel=\"noopener noreferrer\">Reports<\/a> are that<\/p>\n<ul>\n<li><strong><a href=\"https:\/\/web.archive.org\/web\/20200921145628\/https:\/\/www.channelpartnersonline.com\/2018\/01\/02\/layoffs-coming-for-thousands-of-att-employees\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-112707\" title=\"VMware Executative layoffs\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Layoffs-1-e1581035921437-150x99.jpg?resize=110%2C72&#038;ssl=1\" alt=\"VMware Executative layoffs\" width=\"110\" height=\"72\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Layoffs-1-e1581035921437.jpg?resize=150%2C99&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Layoffs-1-e1581035921437.jpg?resize=75%2C49&amp;ssl=1 75w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Layoffs-1-e1581035921437.jpg?w=431&amp;ssl=1 431w\" sizes=\"auto, (max-width: 110px) 100vw, 110px\" \/><\/a>Chief Customer Officer<\/strong> Scott Bajtos, an 11-year VMware veteran who oversaw VMware\u2019s global services team which includes customer success, <strong>technical support, professional services<\/strong> support, and customer advocacy.<\/li>\n<li>Mark Ritacco, <strong>VP of operations<\/strong> and customer intelligence, after almost 11 years,<\/li>\n<li>Kate Woodcock, VP of<strong> customer advocacy<\/strong>, after almost eight years.<\/li>\n<li>Scott Bajtos &#8211; global <strong>chief customer officer<\/strong>, is leaving after 11 years.<\/li>\n<li>Alexa Erjavic, senior director of<strong> global services strategy.<\/strong><\/li>\n<\/ul>\n<h3>VMware acquisitions<\/h3>\n<p>Could it be buyer&#8217;s regret? Not even cutting a handful of executive salaries can cover the <strong>billions VMware has spent on acquisitions<\/strong> over the past 2 years.<\/p>\n<p>In 2018 VMware bought:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.azcentral.com\/story\/news\/local\/el-paso\/2016\/12\/20\/13-million-lottery-ticket-sold-el-paso\/95670766\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-112708\" title=\"billions VMware has spent on acquisitions\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack_o-money.jpg?resize=95%2C86&#038;ssl=1\" alt=\"billions VMware has spent on acquisitions\" width=\"95\" height=\"86\" srcset=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack_o-money.jpg?w=150&amp;ssl=1 150w, https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/stack_o-money.jpg?resize=75%2C68&amp;ssl=1 75w\" sizes=\"auto, (max-width: 95px) 100vw, 95px\" \/><\/a><a href=\"https:\/\/www.zdnet.com\/article\/vmware-buys-e8-security-to-bolster-ai-assisted-security-tools\/\" target=\"_blank\" rel=\"noopener noreferrer\">E8 Security<\/a> for machine learning (ML) and Artificial Intelligence (AI) for <strong>cybersecurity<\/strong> intelligence and analytics.<\/li>\n<li><a href=\"https:\/\/www.geekwire.com\/2018\/vmware-acquires-seattles-cloudcoreo-cloud-security-expertise\/\" target=\"_blank\" rel=\"noopener noreferrer\">CloudCoreo<\/a> to manage cloud configurations and identify risks when deploying public clouds to prevent breaches and compliance violations.<\/li>\n<li>EMC Service Assurance Suite for monitoring <strong>telco network<\/strong> health, performance, and root cause analysis.<\/li>\n<li><a href=\"https:\/\/web.archive.org\/web\/20221207072944\/https:\/\/www.channele2e.com\/business\/enterprise\/vmware-cloudhealth-multi-cloud-manaegement\/\" target=\"_blank\" rel=\"noopener noreferrer\">CloudHeath<\/a> for <strong>multi-cloud<\/strong> management platform across Amazon Web Services (AWS), Microsoft Azure and Google Cloud Platform (GCP) for $500 million.<\/li>\n<li><a href=\"https:\/\/www.sdxcentral.com\/articles\/news\/vmware-paid-550m-for-heptio-to-boost-its-kubernetes-portfolio\/2018\/12\/\" target=\"_blank\" rel=\"noopener noreferrer\">Heptio<\/a> VMware plans to use Heptio assets to enhance <a href=\"https:\/\/cloudacademy.com\/blog\/what-is-kubernetes\/\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>Kubernetes<\/strong><\/a> life-cycle management $550 million.<\/li>\n<\/ul>\n<p>In 2019 VMware bought:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.atmmarketplace.com\/articles\/big-fish-little-fish-the-outlook-for-mergers-and-acquisitions-in-the-atm-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-112709 size-full\" title=\"VMwareacquisitions over the past 2 years\" src=\"https:\/\/i0.wp.com\/rbach.net\/wp-content\/uploads\/Merger-4-e1581036145844.png?resize=98%2C65&#038;ssl=1\" alt=\"VMwareacquisitions over the past 2 years\" width=\"98\" height=\"65\" \/><\/a><a href=\"https:\/\/www.crn.com\/news\/mobility\/vmware-reaches-deal-to-acquire-aetherpal-a-technology-partner\" target=\"_blank\" rel=\"noopener noreferrer\">AetherPal<\/a> for <strong>remote IT support<\/strong> software to remotely view, control, troubleshoot, and fix devices and applications.<\/li>\n<li><a href=\"https:\/\/www.crn.com\/slide-shows\/storage\/vmware-s-bitfusion-and-uhana-ai-acquisitions-5-things-to-know\" target=\"_blank\" rel=\"noopener noreferrer\">BitFusion<\/a> to support <strong>Artificial Intelligence<\/strong> and <strong>machine learning<\/strong>-based workloads on graphics processor units (GPUs)\u00a0(no acquisition price announced).<\/li>\n<li><a href=\"https:\/\/www.crn.com\/slide-shows\/storage\/vmware-s-bitfusion-and-uhana-ai-acquisitions-5-things-to-know\" target=\"_blank\" rel=\"noopener noreferrer\">Uhana<\/a> for <strong>5G mobile<\/strong> network optimization.<\/li>\n<li><a href=\"https:\/\/www.crn.com\/news\/security\/vmware-acquires-intrinsic-for-application-security-expertise-report\" target=\"_blank\" rel=\"noopener noreferrer\">Intrinsic<\/a> for secure serverless functions on AWS, Azure, and GCP.<\/li>\n<li><a href=\"https:\/\/www.crn.com\/news\/cloud\/vmware-to-buy-application-deployment-specialist-bitnami\" target=\"_blank\" rel=\"noopener noreferrer\">Bitnami<\/a>\u00a0brings simplified <strong>app development<\/strong> with a curated marketplace for VMware customers.<\/li>\n<li><a href=\"https:\/\/www.sdxcentral.com\/articles\/news\/vmware-buys-veriflow-for-network-monitoring-verification\/2019\/08\/\" target=\"_blank\" rel=\"noopener noreferrer\">Veriflow<\/a> for <strong>network monitoring<\/strong> software for <strong>multi-cloud<\/strong> management.<\/li>\n<li><a href=\"https:\/\/www.crn.com\/slide-shows\/networking\/vmware-avi-networks-deal-5-important-things-you-need-to-know\/1\" target=\"_blank\" rel=\"noopener noreferrer\">Avi Networks<\/a> for <strong>multi-cloud<\/strong> application delivery to enhance performance, resource utilization, automation, and scalability.<\/li>\n<li><a href=\"https:\/\/www.sdxcentral.com\/articles\/news\/pivotal-stock-spikes-on-vmware-acquisition-overture\/2019\/08\/\" target=\"_blank\" rel=\"noopener noreferrer\">Pivotal<\/a> for <strong>multi-clou<\/strong>d application software strategy across AWS, Azure &amp; GCP for $2.7 billion. and;<\/li>\n<li><a href=\"https:\/\/www.crn.com\/news\/virtualization\/carbon-black-stock-officially-ends-as-vmware-nears-acquisition\" target=\"_blank\" rel=\"noopener noreferrer\">Carbon Black<\/a> to provide an enterprise-grade <strong>security platform<\/strong> to protect workloads, applications and networks from device to cloud for $2.1 billion.<\/li>\n<\/ul>\n<p>Already in 2020 VMware bought:<\/p>\n<ul>\n<li><a href=\"https:\/\/www.networkworld.com\/article\/3515930\/vmware-targets-sd-wan-management-with-nyansa-acquisition.html\" target=\"_blank\" rel=\"noopener noreferrer\">Nyansa<\/a> to provide <strong>network t<\/strong><strong>raffic analytics<\/strong> that covers the SD-WAN and the wired and wireless LAN.<\/li>\n<\/ul>\n<p><em><strong>rb-<\/strong><\/em><\/p>\n<p><em>While the hyper-scale cloud vendors AWS, Azure, GCP, and the Chinese giants battling it out for cloud supremacy. Most enterprises have adopted a <a href=\"https:\/\/web.archive.org\/web\/20220201075458\/https:\/\/searchcloudcomputing.techtarget.com\/definition\/multi-cloud-strategy\" target=\"_blank\" rel=\"noopener noreferrer\">multi-cloud strategy<\/a>. VMware is in the incumbent position as it competes with IBM, maybe Cisco, and HPE to be the glue that binds private and public clouds as well as owned data centers into an enterprise multi-cloud strategy. <strong>This is a long-term play.<\/strong><\/em><\/p>\n<p><em>In the near term &#8211; all of the acquisitions since 2018, VMware does not have a lot to show for it financially. <strong>VWM has been basically flat.<\/strong> VMW spiked to $150.00 in January 2018, hit a peak of $203.64 in, 2019 and has settled back to $157.50 in February 2020.<\/em><\/p>\n<p><strong>Related article<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/wp.me\/p2wgaW-nuF\" target=\"_blank\" rel=\"noopener noreferrer\">Crossing the Streams<\/a>\u00a0(<a href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a>)<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><em><a title=\"Ralph Bach\" href=\"https:\/\/rbach.net\/index.php\/new-resume\/\" target=\"_blank\" rel=\"noopener noreferrer\">Ralph Bach<\/a>\u00a0has been in IT long enough to know better and has blogged from his\u00a0<a title=\"Bach Seat\" href=\"https:\/\/rbach.net\/\" target=\"_blank\" rel=\"noopener noreferrer\">Bach Seat<\/a> about IT, careers, and anything else that catches his attention since 2005. You can follow him on <a class=\"broken_link\" href=\"http:\/\/www.linkedin.com\/in\/rb48334\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">LinkedIn<\/a>,\u00a0<a href=\"https:\/\/www.facebook.com\/ralph.bach.14\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a>,\u00a0and\u00a0<a href=\"https:\/\/twitter.com\/rbach48334\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>. Email the Bach Seat\u00a0<a href=\"mailto:\/\/bach.seat@gmail.com\" target=\"_blank\" rel=\"noopener noreferrer\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Last week was a bad one for VMware &#8211; they lost a suit to Densify, VPs were canned and staff was laid off are they coming unglued?<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[32],"tags":[3397,2571,2750,3031,2230,32,1935,216,3412,31,3259,1325,390],"class_list":["post-112537","post","type-post","status-publish","format-standard","hentry","category-business","tag-3397","tag-5g","tag-artificial-intelligence","tag-aws","tag-azure","tag-business","tag-cloud","tag-dell","tag-gcp","tag-layoffs","tag-mergers-and-acquisition","tag-patent","tag-vmware"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/112537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/comments?post=112537"}],"version-history":[{"count":26,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/112537\/revisions"}],"predecessor-version":[{"id":129588,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/posts\/112537\/revisions\/129588"}],"wp:attachment":[{"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/media?parent=112537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/categories?post=112537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rbach.net\/index.php\/wp-json\/wp\/v2\/tags?post=112537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}