It's not a V bottom, it's not a U bottom, it's a Nike swoosh recovery - Greg McLenon, Hotovec Pomeranz
SOFTWARE VENDOR VMware and storage outfit EMC have done a boardroom swap that sees Pat Gelsinger installed as VMware CEO while Paul Maritz moves to EMC as chief strategist.
Yesterday rumours were swirling that VMware would dump Maritz, with Gelsinger in the frame for the top job at the virtualisation company. Today VMware and EMC confirmed that Gelsinger will indeed be moving to VMware to become its CEO, but in a surprise move they said that Maritz will head in the other direction, seemingly taking a demotion to become EMC's chief strategy officer.
With Maritz staying on the board of VMware, it suggests that the two companies will become closer and there was a lot of talk of big data, something EMC would like to exploit to sell more of its storage area networks. Gelsinger's past history consists of 30 years at Intel, with three years at EMC leading to the CEO title he has wanted for years.
Joe Tucci, EMC chairman and CEO said of Gelsinger, "Pat's unique experience in understanding how software can add value to standard hardware building blocks, as well as his deep understanding of the x86 partner ecosystem and his track record running large scale organizations make him the natural choice to further enhance VMware's competitive positioning and lead VMware through its next phase of growth."
As EMC and VMware saddle up together, rival storage and virtualisation vendors such as Citrix, Parallels and Netapp will have to consider how they will tackle the challenge of going up against the biggest storage and virtualisation vendor when they are working together. µ
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