Gawker: valleywag, virtualization

VMware CEO and founder resigns, shares drop 30 percent

Nicholas Carlson — Tue, 08 Jul 2008 12:20:00 EDT

Palo Alto server virtualization software maker VMware'scofounder Diane Greene resigned today, effective immediately. Virtualization is technology that allows one server to operate like its two or more, and it was thought to be a hot growth sector. Key word being "was." The company, which EMC spun off in an IPO only last August, also lowered its revenue growth expectations for the quarter below 50 percent.

Company shares are down 30 percent so far on the day. The people who get paid enough to watch and report on the virtualization industry say it's Microsoft that has put the squeeze on VMware, by building virtualization features into Windows. Gartner analyst Thomas Bittman, for example, says Microsoft's virtualization features — it launched "Hyper-V" in June — will probably take over the virtualization market among small to medium-sized enterprises. Greene founded VMware in 1998 and sold it to EMC in 2003. The experience has likely made her wealthy, but not happy. (Photo by AP/Risberg)

Microsoft buys virtualization firm Kidaro for rumored $100 million

Jordan Golson — Wed, 12 Mar 2008 15:34:27 EDT

Microsoft has agreed to acquire corporate virtualization specialist Kidaro for an undisclosed amount — though we hear it's around $100 million. Kidaro allows corporations to build secure, controlled workspaces for remote users. Its software enables companies to restrict what applications, network resources and data users can access. Virtualization is big business; Kidaro has a great product for corporations. Why doesn't Microsoft just do deals like this instead of spending $44.6 billion on Yahoo? That seems easier.

VMware down 17 percent since IPO

Jordan Golson — Mon, 10 Mar 2008 14:40:58 EDT

"There is no bubble in technology," said Facebook board member Peter Thiel in December. Tell that to investors who bought into VMware's IPO. [VMW]

Microsoft, VMware bring out the brass knuckles

Nicholas Carlson — Mon, 28 Jan 2008 17:20:58 EST

Enterprise IT is boring ... except when it gets lowdown and dirty. LIke it's starting to between Microsoft and VMware. Last week, Microsoft announced a "vision and strategy to accelerate virtualization adoption." We could relay the details, but they're full of jargon like "System Center Virtual Machines Manager (SCVMM)" and "RPD protocol for VDI environments." So go here for that. The best way to understand tech jargon like this is to see how companies pump up their sales guys for battle, since everyone knows sales guys are thick as rocks and must be told things in small, English-language words. Here are excerpts from a leaked VMware memo:

First, VMWare commands its sales team to call the Microsoft announcement a "desperate" "hodge-podge":

Microsoft announced a hodge-podge of items related to virtualization in a desperate attempt to make it look like it had a new, coherent vision and strategy for virtualization...
MSFT includes many recycled items in the announcement to make it look substantive. In actuality, they are just rehashes of old items. Microsoft is not delivering anything new, substituting marketing in place of real substance...
The new items are a collection of loosely connected pieces thrown together to look like a coherent virtualization plan. Microsoft is still talking vision...

Then, the sales team is told to insinuate that Microsoft's advancements mean it will soon end its partnership with and cease to support VMWare rival Citrix:

Microsoft's announcement introduces new conflicts into the Microsoft-Citrix business partnership and begs the question "When will Microsoft dump Citrix and take all of the business for itself?" Is this just a partnership of convenience for Microsoft until it ships its own product?
Tell your prospects that are considering Citrix, that MSFT will soon cut Citrix out of the loop ... and Citrix is allowing it to happen.
New Conflict #1: Microsoft System Center or Citrix XenServer for Management. This declaration hits at the heart of Citrix's stated business model for virtualization — to generate revenue from the management of Windows virtual machines with Citrix XenCenter. System Center and XenCenter are clearly competitors.
New Conflict #2: Calista acquisition creates more direct competition with Citrix SpeedScreen (ICA). This acquisition strikes at Citrix's core business since ICA is Citrix's key differentiator and competes with RDP.

Microsoft goes for VMware's throat, throws Dell under the bus

Jordan Golson — Thu, 13 Dec 2007 19:49:12 EST

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.