VMware President: CIOs Must Be Line-of-Business Brokers

VMware President: CIOs Must Be Line-of-Business Brokers

VMWare (NYSE: VMW) President and COO Carl Eschenbach provided insights into how the CIO's role is changing in companies of all sizes and how partners should handle the shift during his address at VMware Partner Exchange 2013. He also provided partners with insight into three of VMware's core missions: software-defined data center, hybrid cloud and PC to mobility.  Here are the key points to take away.

Eschenbach said that VMware and partners are in a unique position to once again transform the industry. Here's why.

Software-defined data center

  • It's about virtualizing network and storage, not just compute. Virtualization is the key technology in the software-defined data center.
  • VMware vCloud Suite addresses the management needs of our customers, cloud infrastructure and extensibility.
  • We need to drive the data center: "You can't scale vertically."
  • Move hardware silos to software defined data center.
  • Partners should expand into virtualization, and expand horizontally into storage.
Continue to drive customers' cloud journey
  • We have never had such clear alignment with our priorities before.
  • We need to all be focused on our three missions. "If you're not focused on one of priorities, you're not doing your job."
  • "We're not trying to boil the ocean. We're trying to be really focused on our core value that we've brought to the market over the past decade."
  • If we all align on these priorities, we will enjoy 2013 and beyond.
Coordinating our go-to-market strategy
  • Enterprise organizations (5,000 plus): VMware led, partner support; Mid-market organizations: VMware and partner led; and SMB: partner led VMware, support.
  • "We need to get an alignment on messaging and marketing campaigns." Our marketing campaigns are at all levels: enterprise, mid-market, and SMB.
  • VMware works with a coordinated services approach. We are not here to compete. We are focused on enterprise services.
  • We need to understand how our customers are consuming our technology, as well as challenges they may have. If we don't understand what they need, how can we make it better? Lastly, we are leaving the rest of the market for you.
  • Partners' service focus is commercial.
  • We're focusing on the size and needs of our customers.
Management philosophy
  • Focus on more automation, less management.
  • CIOs are the bottleneck, and people are going around them. We need to help the CIO in organizations to become the IT broker of services.
  • We need CIOs to be the IT broker for IT service delivery.
  • The level of trust needs to be between the CIO and the line of business. We want to reduce the restriction between IT and consumer.
Services Opportunity
  • You will serve more services than our software, and we're okay with that.
  • There is a $41.5 billion in services opportunity for private cloud by just  2015.
  • 85 percent of revenue comes through partners. "This is a statistic for the last decade that will never change."
Editorial Director Joe Panettieri covered CEO Pat Gelsinger's comments earlier in the session.

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