VMware Confirms CEO Change, EMC Previews Financial Results
As suspected, EMC executive Pat Gelsinger will replace VMware CEO Paul Maritz, effective Sept. 1. Maritz will shift to EMC chief strategist. The moves, confirmed by EMC CEO Joe Tucci (pictured), show the line between VMware and EMC is nonexistent, as the two technology companies try to master cloud computing, big data, virtualization and security opportunities together.
EMC (NYSE: EMC) and VMware (NYSE: VMW) confirmed the Gelsinger-Maritz executive moves today. Also, EMC Executive David Goulden becomes president and COO, and EMC executives Howard Elias and Jeremy Burton gain more responsibilities, Tucci announced.
EMC did not discuss VMware’s potential spin-off of Cloud Foundry, an infrastructure as a service (IaaS) platform that competes with Amazon Web Services, Google Compute Engine and Microsoft Windows Azure. Cloud Foundry’s future has been the topic of great speculation in the past two days.
Tucci said in a prepared statement:
“With these changes, David will assume responsibility for EMC’s Information Infrastructure business, Pat will now lead Cloud Infrastructure at VMware, and Paul will look across our technology strategy with a particular focus on Big Data and the next generation of cloud-oriented applications that will be built on top of these foundations.”
The executive changes surface as VMware faces potential competition from Windows Sever 2012 and an upgraded Hyper-V release, which Microsoft will ship in September 2012. Also, some critics think VMware price hikes in 2011 opened the door for customers to choose alternative options from Microsoft, Red Hat, Citrix Systems and other virtualization companies. VMware’s looming CEO change was first reported by CRN yesterday.
VMware is expected to announce quarterly results on July 23. EMC will disclose quarterly results on July 24. In a statement today, EMC said it still expects to achieve its full-year 2012 goals of $22 billion in revenue and non-GAAP EPS of $1.70.
That’s an important statement. Intel (NASDAQ: INTC) today cut its profit outlook for the rest of 2012, citing macroeconomic concerns amid a potential customer shift to Windows 8.