<![CDATA[Gawker: valleywag, emc]]> http://tags.gawker.com/assets/base/img/thumbs140x140/gawker.com.png <![CDATA[Gawker: valleywag, emc]]> http://gawker.com/tag/valleywag/emc http://gawker.com/tag/valleywag/emc <![CDATA[VMware shares sink underwater with crew fleeing and sharks circling]]> New CEO Paul Maritz, formerly of Microsoft, may have just taken the helm of a sinking ship in VMware. CEO Diane Greene was unceremoniously ousted by chairman and CEO of corporate parent EMC Joe Tucci last month, leaving no women navigating any top Valley companies. Her husband, cofounder and fellow sailor Mendel Rosenblum to whom Tucci offered the CEO job and a board seat, has now officially resigned; product development VP Paul Chan soft-quit and will be gone by October; and VP of R&D Richard Sarwal moved to competitor Oracle last week (where, thanks to a recent California court decision, he does not have to honor any non-compete agreements).

Rosenblum has been on vacation for a month after Greene's firing, possibly to lessen the bad publicity ahead of VMworld 2008 in Las Vegas which starts next Monday — while Microsoft has been busy introducing its own virtualization technologies in a barnstorming campaign this week. My advice to Greene and Rosenblum? Sell those pre-IPO options as soon as you can, because the stock is bound to dip below the initial price sooner rather than later.

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<![CDATA[VMware cofounder Diane Greene]]>
Diane Greene: Her only mistake was working for another tyrant
Reports the Register:

[VMware] employees have talked to us about going into meetings with [cofounder Diane] Greene and crawling into their foxholes, hoping to avoid being struck by criticism or worse, a tirade.

These same employees describe Greene as "a hard-driving perfectionist who loves nothing more than to get her way." But despite her flaring temper, VMware cofounder Diane Greene's underlings loved her as the head of their company, especially as her dictatorial management style helped send its stock through the roof. But the stock eventually faltered, and Greene's tempestuous attitude threatened Joe Tucci, CEO of VMware's parent company, EMC. Greene and Tucci never got along, and so when Tucci got the chance, he pushed Greene out of the company.

Next: Ex-Jobster CEO Jason Goldberg: Hot head, hot lead

(Photo by AP/Risberg)

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<![CDATA[Employees loved canned VMware cofounder more than overlord EMC's CEO]]> Despite a fiery temper and fearsome presence in meetings, departed VMware cofounder Diane Greene isn't leaving the company with very many enemies. On workplace review site Glassdoor.com, employees gave Greene an 84 percent rating — better than the 72 percent VMware parent company EMC's worker bees gave their CEO Joe Tucci. In the section labeled, " Advice to Senior Management," one current employee, a senior systems engineer, wrote: “Listen to Diane.” Another lists VMware's "pros":

Very fair with compensation and one gets the feeling the core founders (Diane, Mendel, etc) really care about people working in a good and healthy environment.

Tucci's Glassdoor approval rating has improved from the 44 percent level which qualified him for our list of tech's 10 worst rated CEOs. Does anyone smell an astroturfing campaign? Even with the suspiciously speedy improvement, Tucci enjoyes far less support from his reviewers. One headlines a review: “Joe Tucci knows what stockholders want to hear and uses that to maximize HIS compensation.” Another, among the more positive reviews, hardly helps Tucci's cause:

Joe Tucci has done a good job of leading the company through some tough times, but is he an innovator or visionary like Gates, Jobs, or even Larry Ellison? Maybe that's what is needed to boost the company's profile - and stock price.

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<![CDATA[Was EMC's CEO jealous of ousted VMware founder?]]> Why would VMware push out cofounder Diane Greene — heretofore remarkably successful — at the software company's very first sign of trouble? It's not like Microsoft's entry into VMware's market, which helped knock down VMware's high-flying stock, was unexpected. One theory: Joe Tucci, the CEO of EMC, which owns 86 percent of VMware, holds a personal grudge against Greene and took the opportunity push his rival out.

As early as September 2007 — when analysts began wondering how long it would be before VMware's market capitalization would outgrow EMC's — rumor had it a rivalry of intense personal animosity was brewing between Greene and Tucci. Tucci supposedly disdained Greene's intense managerial style, one that would, according to Vance, have employees "going into meetings with Greene and crawling into their foxholes, hoping to avoid being struck by criticism or worse, a tirade." Vance posits that as VMware grew to be EMC's growth engine, Greene got too heady in her power and turned some of that intensity toward her sort of, kind of, not-really-because-he-needs-me-more-than-I-need-him boss, Tucci. If so, it's hard to think of anyone more deserving, since Tucci's no wallflower himself. Anyone have good Greene stories? Or Tucci tales? Send them in. (Photo by AP/Risberg)

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<![CDATA[The return of Paul Maritz, the Microsoft menace]]> Why so gloomy, VMware investors? The company's stock drop, while likely driven more by the virtualization software maker's newly slenderized forecasts and the resignation of its founder, seems like a slap in the face to incoming CEO Paul Maritz. And that would be a shame, since VMware is now getting one of the princes of the software world as its boss — and just in time, as it's facing tough competition from Microsoft, where Maritz used to work.

Once a high-flyer at Microsoft, Maritz was ousted in one of the software giant's typically obscure internecine battles back in 2000. Since then, he's quietly stewed in exile, starting a small software company which was bought by EMC, VMware's parent.

A lucky break for EMC to have Maritz on its bench. Ignore his cuddly-programmer looks; he is fearsome, and deservedly hated by enemies. Antitrust superlawyer David Boies couldn't make a dent in Maritz's armor when the executive took the stand in Microsoft's 1990s antitrust trial. VMware is up for a bruising battle with Microsoft for its software niche, which involves tools to let a computer server act like several separate ones — but I'm thinking Microsoft is the one we should feel sorry for.

Maritz's generation of leaders has mostly retired at Microsoft, yet most of their replacements' freshly scrubbed faces are still familiar to him. He knows all of Microsoft's dirty tricks, and he will enjoy serving them back at the young ones he once taught them to. This will be fun.

(Photo by ifindkarma)

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<![CDATA[Tech's 10 worst-rated CEOs, according to their employees]]> Benchmark-backed Glassdoor.com popped out of stealth mode as a site that lets users find out what employees think of their employers. As a part of the ratings, company CEO's get a grade. Some, such as Cisco's John T. Chambers and Apple's Steve Jobs fared very well — coming away with 93 percent and 95 percent approval ratings. Others, including Microsoft's Steve Ballmer and Yahoo CEO Jerry Yang, did not. The ten worst-rated CEO's and what employees told Glassdoor they think about them, below.

VeriSign chairman Jim Bidzos
An employee's advice to senior management:

Don't drag out the divestiture process in an effort to get a few extra bucks. And if you're going to kill the whole thing, be honest with employees about opportunities.

AMD chairman and CEO Hector Ruiz
An employee's advice to senior management:

AMD needs to go back to basics. What business is AMD in, who do you need onboard to lead the company in that business, who do you need that can create demand for the product, and what do the customers want? Ignore the "how" and focus on the "who." Stop treating employees like costs and more like assets. Threatening cubical hoteling and pushing the "do more with less" story is oppressive, not inspiring. The most marketable talent will leave first.

EMC CEO and chairman Joe Tucci
An employee's advice to senior management:

Senior management needs to respect its employees, listen to feedback and not bury its head in the sand as it relates to issues of sexism and lack of diversity. The culture continues to be predominantly young white men and this is largely because people hire who they know. "Breaking the glass ceiling" requires a lot of sacrifice! They will cite a few examples of high profile women, but these are the exception, not the rule. Work/life balance is not a priority in this company. Most of the highest ranking professional women in this organization are unmarried or do not have children. They need to recognize the need for more flexible work options that promote the importance of family. And most importantly, there need to be consequences for illegal and unethical behavior, regardless of who commits it! People cannot be protected from this. There are too many blind eyes turned when sexual harassment, illegal business practices, or other unethical acts occur.

Yahoo CEO Jerry Yang

An employee's advice to senior management:

Be more open to the workforce opinions. Be more humble. Be less political. Listen more, do more, and quickly.

eBay CEO John Donahoe
An employee's advice to senior management:

Streamline the process so people can focus more on getting their work done. Share more of the details of the vision for eBay and the competition of eBay.

Symantec CEO John Thompson
An employee's advice to senior management:

Open your eyes to how the actually successful companies are doing it. Use your talent pool and clear the way to innovate internally. Shift the focus from salesmanship to inherent quality. Build products that sell themselves rather than needing an aggresive sales cycle to move.


Hewlett-Packard chairman, president and CEO Mark Hurd

An employee's advice to senior management:

Stop screwing the employees. Stop reducing benefits every week. Stop saying you plan to invest in research and development when you are actually reducing everything except your bonuses. Start treating people as people. Get some moral fiber.


EDS chairman, president and CEO Ron Rittenmeyer

An employee's advice to senior management:

As I said above, either learn to trust the junior leadership you put into place or replace them. Set goals and then GET OUT OF THE WAY and allow the leadership the flexibility to execute to them. If they don't perform, release them. The micromanagement culture has to stop.

IBM chairman, president and CEO Sam Palmisano
An employee's advice to senior management:

One thing is missing though, an acceptance of the fact that there are "superstars" in the world, and that these superstars perform several orders of magnitude better than regular employees. What is missing within IBM is the ability to seek out, and nourish these superstars. Over time superstars will leave IBM because they will get much more recognition in other organizations. This has an impact on IBM's ability to deliver some things.

Microsoft CEO Steve Ballmer
An employee's advice to senior management:

There is a severe lack of leadership in the company. With so many things going on it takes executives too long to commit to business decisions and too long to pick up on competitive responses to disruptive technologies.Microsoft promotes based on 2 facets - technical knowledge and political saavy. What Microsoft does not promote based on is leadership ability, managerial ability or business saavy.

(Photo of Ballmer by AP/Sarbach)

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<![CDATA[EMC reports sales up, but customers dragging heels]]> Joe TucciStorage is a predictable need; have you ever heard anyone say they need less of it? That has long been EMC's pitch to Wall Street — that demand for its storage hardware and software is ever reliable. The earnings news from the company is mixed: Customers are still buying, with revenues up 17 percent to $3.5 billion, but buyers in the U.S. are taking longer to make up their minds and sign purchase orders. Rational caution, or a sign of trouble ahead? EMC CEO Joe Tucci, in a conference call, acknowledged that the environment was "tough," but stood by his earlier forecasts. If EMC's customers continue their delaying tactics, they may prove Tucci overconfident. At some point, his salespeople will bow on price to seal deals and make their quotas. Storage may be a necessity, but EMC's profit margins, which rose to 15.8 percent in the quarter, are not.

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<![CDATA[Microsoft goes for VMware's throat, throws Dell under the bus]]> Microsoft is releasing an early version of Hyper-V, its virtualization software, ahead of schedule. Microsoft is competing head-on with high-flyer VMware, which went public in a much-hyped IPO earlier this year. The company, which is majority owned by EMC, is off 20 percent from its all-time high last month. For the 99 percent of you whose business card doesn't say "IT Peon," here's what this means.

Virtualization allows one computer to run multiple "virtual machines," with different operating systems. If one crashes, it won't bring the others down, and also allows for better security and more efficient allocation of resources. At the end of the day, this billion-dollar-spat between Microsoft and VMware means one thing to non-sysadmins: You can get away with cutting your hardware budget next year. Sorry, Dell.

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<![CDATA[EMC gets cozy with Mozy, but will consumers bite?]]> The problem with selling your wares to Fortune 500 companies? There are only 500 of them. And the high-priced, hard-charging sales force required to woo them is prone to scandal, as a recent sex-bias lawsuit against EMC alleges. That, I believes, explains why the storage-hardware maker is getting into the consumer business with its $76 million purchase of Mozy, an online data-backup service. With only 180,000 customers, the purchase price seems high, as GigaOm and others have noted. But small businesses are often better courted with consumer-friendly offerings than with hard-sell pitchmen.

Mozy, with online-backup plans starting at $4.95 a month, opens up EMC to businesses that would never bother to buy their own servers. And Mozy itself, as it adds hardware to cope with growing demand, makes a fine in-house buyer of EMC hardware. That's the business logic, anyway. In practice, there's a flood of online-storage startups on the market, and EMC may find the consumer business tough sledding. That makes me think of a less rational, but emotionally satisfying, explanation for EMC's Mozy buy: Boring enterprise businesses like EMC have a bad case of Google envy, and want to tap the consumer market to salve executives' ego and perhaps boost their market cap.

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<![CDATA[Workplace Harrassment, The "Gray Rape" Of Your Sober Years]]> You know that line, "If Clarence Hill looked like Denzel Washington, it wouldn't be a problem"? Well, ha ha ha until we read your comments on yesterday's post about EMC, the only technology company pioneering enough to think to paint its initials on strippers' ass cheeks for a company function. Which prompted a startling thought: sometimes having a crappy sexist boss can be worse than, I dunno, gray rape. I mean, I don't want to get carried away here: the senior partner one of you refused to blow was kind enough to present you with that little severance package for your gag agreement the next day. And the fiftysomething boss who listed in order the twentysomething assistants he wanted to fuck and then would make a big thing of saying, sotto voce, "That's number eight!" — that guy at least gave you a good anecdote. (Though nowhere near as great as the boss who told you that whenever he was fucking his girlfriend and couldn't come, he'd just think of you and immediately "blow his load.")

And the one who asked, when you won an award for a presentation, if you were wearing "those" heels during the presentation — fair question. (The ones who asked to see your "jungle nipples" might have crossed the line.)

But the thing is, while good parents and goals and and a strong sense of self blah blah can go far to protect against the abuses doled out by idiot, power-hungry dudes in bed, the office is another story. For one thing, for all y'all who are lacking in the rich husband department, it's your livelihood. More importantly, it's probably a critical component of your identity. So when we read shit like this:

When she was 15 she got her very first job working nights and weekends at a mom and pop deli store. The kids in the family, who were her age, worked there too so she got to know the whole family. One late night she was sweeping up and the 40+ dad of the family came up and grabbed her from behind. When she freaked out he patiently explained that this was the whole purpose for hiring her and that she shouldn't be so naive. Completely traumatuzed she started crying and he gave her a big hug, consoled her and said it was best to never speak of this to anyone, as to not jeopardize their "friendship". She didn't quit the job, and didn't tell anyone until years later because he had talked her into thinking she had brought it on herself. She confided in me MUCH later that she actually felt grateful at the time that he was so understanding.
...we get concerned. Maybe because we felt a little shiver of recognition — and it wasn't over something that happened when we were fifteen, more a recurring sense we've had over the years in the workplace that that's just how it is. And we'd better just cope. So to anyone who is feeling that way: you know how we say "fuck discretion?" Yeah, that. And moreover: start writing it all motherfucking down.]]>
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<![CDATA[Ever Had A Boss Who Made You Hate Men?]]> A story in today's Journal about a bunch of workplace sex discrimination lawsuits filed against EMC, a data storage company (fun fact: data storage = causing some problems for us today!) got us all a-body-spasming. We thought it was bad when one of those Wal-Mart managers had surreptitiously taken employees to a strip clubs! Well, at EMC, they got the strippers to paint "EMC" on their ass cheeks. In one lawsuit, filed by a longtime executive at the company, the boss man decides to perform some exotic tricks on a dancer hired to entertain a company event.

...a stripper was hired to come to the hotel where a company meeting was being held to celebrate the promotion of two managers. Ms. Nelson left the room and waited in the hallway, her lawsuit said. While waiting there, she heard male salesmen who left the room saying that her "boss licked whipped-cream off the strippers' breasts," her complaint said.
WHY IS IT MALE BOSSES THINK THIS SHIT IS OKAY? We polled our friends. Interestingly, about half of them had no bad work stories whatsoever; the other half had mooore than enough to compensate.

I once had a boss who'd chew out his (silent) wife in front of me; another liked to walk around shirtless, "tackle" female employees in the hallways and give his female assistants pet names synonymous with "Retard." Naturally, the environment came straight from the top; I just ran into a girl who told me that old boss's boss had recently instructed her to take off her coat so he could inspect her outfit, only to instruct her to wear something tighter, with higher heels. This girl was an editor, for fuck's sake. But none of this shit is even so bad; it's the notion that women can't be smart - or that women who are smart are thereby "crazy" "divas" - that usually accompanies it that is the worst. A policy wonk friend of ours had a graduate school internship wherein she was required to trim the edges off newspaper clippings for one of the policy analysts; her current job isn't much better. A certain Jezebel intern used to work for a publisher who asked her to "remove splinters from his hand and share his distaste for the plain looking fat-ish girls at the magazine." He also made her fetch him cappuccino every hour and "slapped his secretary's ass once in awhile," while he kept all real business from the female editors and assigned "the random man who was like the office manager" to do all the editorial work. Another (Jewish) friend had a boss who told the charming joke "How do you get a Jewish girl to stop fucking?" (Answer: Marry her. Ha!) And a friend of ours who was lucky enough to get her own ass slapped waiting tables at the poker room at the Golden Eagle Country Club in Tallahassee, Florida actually complained about it — after which only male servers were allowed to work the poker room. Anyway, in case you didn't get it — don't feel bad, the thickest girls have the nicest racks! wink — this is your repository for sexist boss stories. As long as you're still at work, you might as well give them up.

A Data Storage Titan Confronts Bias Claims [WSJ]

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<![CDATA[VMware's virtual lock on the job market]]> VMware, that boring little virtualization-software company, has gotten a lot more interesting since its moonshot IPO. The partial spinoff from corporate parent EMC was the flashiest debut since Google, and the comparisons to the search behemoth keep coming. Bloomberg is reporting that VMware is now competing with Google for the very lifeblood of Silicon Valley — developers. And it's willing to use its newfound IPO wealth to steal programmers from the rest of the Valley. Of the 1,168 jobs — 1,168! — listed on VMware's career webpage, 596 are listed under IT or R&D. With a rumored starting salary of $130K-$160K, and stock options with a current strike price around $66, look for frustrated Googlers to start trickling towards Palo Alto.

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<![CDATA[The return of the moonshot IPO?]]> Just like the Perseids that streaked across the sky this weekend, VMware, a boring little software company, is leaving a meteoric trail, up and away, on the stock ticker. Bought by EMC, the storage-hardware maker, in 2003 for a mere $635 million, VMware's backers had hoped to spin it off at a value of $10 billion. A staggering amount — but staggeringly low, it turns out. After the stock started trading today, it jumped from its $29 offering price to $55, almost doubling the company's value before the stock fell back a bit. At its peak earlier in the day, VMware was worth nearly $20 billion. Ashlee Vance of The Register has been tracking the stock live all day, as have others, but lost amidst the tick-tock of the stock price is the answer to this question: What does this mean for the Valley?

It means an avalanche of IPO filings, sooner rather than later. Since Google's IPO in 2004, there's been a dearth of public offerings, leaving investors starved for new issues to invest in. Expect lawyers and bankers in Palo Alto and San Francisco to, once again, start burning the midnight oil preparing S-1 filings.

VMware's IPO today was what, in the bad old days of the first Internet boom, the most facile commentators dubbed a "moonshot" — an IPO with a clear trajectory upwards, never mind the fundamentals. VMware's offering was clearly underpriced, raising almost a billion dollars less than it could have if its investment bankers had guessed more accurately how much demand there would be for its shares. Of course, a successful IPO is good PR, but that much money left on the table seems like a high price to pay for a moonshot.

The question, of course, for future companies seeking their own moonshot IPO is whether they can repeat VMware's feat. VMware's in a hot market — so-called "virtualization" software, which lets companies more efficiently use the servers they have for multiple tasks. It's a real business, in other words, with deep-pocketed customers.

It's likely that Facebook and other oft-mentioned IPO contenders can ride the current market's hunger for tech. Right now, investors are looking for anything that doesn't have "subprime" in its business description. But as the markets calm down, and investors grow more discriminating, investors will, one hopes, ask hard questions. At the very least, questions harder than "How high will this moonshot rise?"

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