Business, Enterprise, Software Programs

VMware CEO Out, EMC COO Patrick P. Gelsinger is Replacement

Monday evening, CRN said Paul Maritz is out as VMware CEO and is being replaced by Pat Gelsinger, president and COO of EMC’s Information Infrastructure Products division. Maritz could be heading for a new job as CEO of EMC or as head of a spun off Cloud Foundry.

VMware is a company providing virtualization software, founded in 1998 and based in Palo Alto, California. The company was acquired by EMC in 2004 and operates as a separate software subsidiary. EMC owns approximately 80 percent of VMware stock, while Intel has approximately 10 percent and Cisco holds 5 percent of the shares.

Earlier on Monday, Gigaom said VMware is mulling a spinoff of certain cloud-centric parts of its business, including its open source Cloud Foundry platform-as-a-service (PaaS) and assets from EMC?s Greenplum and Project Rubicon, a joint venture infrastructure-as-a-service (IaaS) involving VMware and EMC.

On July 2nd, VMware announced the pending acquisition of DynamicOps, a multi-hypervisor management firm that was spun out of Credit Swisse investment bank. The DynamicOps purchase results from VMware’s realization that their ESX server will have competition in the enterprise data center world. DynamicOps brings VMware a service governor that can manage Microsoft Hyper-V, Citrix, and Oracle Xen-based hypervisors and Amazon Web Services’ proprietary version of Xen, Amazon Machine Images.

Paul Maritz, VMwarePaul Maritz joined EMC in early 2008 with its acquisition of software startup Pi Corp. In July of that year, VMware Board of Directors replaced co-founder, president and CEO Diane Greene with Paul Maritz, a retired 14-year Microsoft veteran who was heading EMC’s cloud computing business unit.

During Maritz’ four year tenure as VMware CEO, the company saw record growth. Revenue climbed from $1.88 billion in 2008 to $3.77 billion in 2011. He also directed VMware’s move from virtualization in the PC era to a force in the management of cloud-based apps that run on multiple devices such as iPads and smartphones.

Regardless of past success, staff continues to be shuffled. Last week, EMC announced a shakeup in their sales management and additional responsibilities for Vice Chairman Bill Teuber.

Pat Gelsinger, who joined EMC in 2009 after a 30 year career at Intel, was thought to be in line for the position of CEO at Intel but was moved out of that succession line. Some say Gelsinger lost out because of "Larrabee", a failed GPGPU project he headed as well as insistence on power-inefficient solutions such as Netburst architecture (Pentium 4). Most recently at EMC, Gelsinger has been discussing the security advantages of using a hybrid-cloud ? a combination of public cloud and private cloud.

Next week, VMware has its second quarter earnings conference call results on July 23. By then the rumors about VMware and EMC should be in full swing. Neither EMC nor VMware spokespeople were available for comments on Monday evening.