There were quite a number of interesting announcements at EMCworld this year. The most important is that the Dell-EMC merger is on track to complete its reorganization as Dell Technologies. Dell Technologies will join the ranks of the largest hardware and software vendors worldwide. EMC also announced several new hardware options and software services, and gave adoption rates for services started last year. All in all, EMC had a very good year. Further, while VMware, Pivotal, and RSA were absent from the show’s keynotes, making more time to discuss the merger, they were far from absent from the show floor.
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At this year’s OpenStack Summit in Austin, Texas, the message was clear. OpenStack needs to pivot from a science experiment to a production system. Even though this is happening, it has been happening slowly. Some would argue that it has been achieved for the likes of PayPal and other extremely large institutions, such as AT&T. However, running, configuring, and installing OpenStack still takes more knowledge than the average enterprise system administrator has available to them. The new Certified OpenStack Administrator certification is a way to exhibit a level of competence for the age of the new OpenStack: the production-ready OpenStack.
According to industry sources, it appears that Dell is discontinuing Wyse vWorkspace, its application and desktop virtualization solution. Although there have been no official announcements specific to vWorkspace, the sales and support teams are currently in a state of flux.
Over the last couple of months, there seems to have been a brain drain at VMware; executives are leaving in swarms. (Is that the collective noun for a group of execs? I don’t know.)
The past month has seen the departure of Jonathan Chadwick, the highly respected chief finance officer; Martin Casado, the general manager of the Networking and Security Business Unit and creator of NSX; and finally, last week, longtime Chief Operating Officer Carl Eschenbach.
After a week of rumors, VMware has finally unleashed the Reaper. Yesterday morning as of 9 am GMT, VMware has announced layoffs in multiple business units across the globe. I have heard that Burlington Canada Call Center has been closed in its entirety (98), although about 50% have been given the opportunity to work remotely. I am sure that this will not include any of the call center staff. Additional layoffs are reported to include approximately 40% of VMware Israel (80), as well as losses in vCloud Air and vCloud Gateway Services in Canada, and in EMEA (numbers unknown). The most surprising of all are the layoffs of all VMware Workstation and Fusion development staff (numbers unknown)—as that department is being outsourced to China—and the rumors of the VMware View group’s being closed down.
Expect to see layoffs soon, now that the new year has built up some steam.
In my final post of last year, I mentioned that one of the stories from 2015 to keep an eye on in 2016 is the Dell $67 billion merger or acquisition of EMC. There has been some chatter that EMC, VMware, and Dell have been struggling to get the merger across the goal line. I have heard of a couple of different reasons for this struggle. One is the extra funding for the $10 billion or more in capital gains taxes that Dell would need to cover. These taxes were originally to be covered by a tracking stock. This tracking stock was structured under a fundamental provision of the US tax code and was designed to represent the holdings of Dell as the parent company.