CEO Gelsinger Details VMware’s Future Course

This is all heady stuff, but the new priorities should also help VMware address a pair of significant, longer-term issues. First, as cloud computing becomes increasingly common and then commoditized, the infrastructure technologies supporting it, including virtualization will become increasingly anonymous. This isn’t an issue VMware faces alone—it’s some-thing every IT infrastructure player has to deal with—and the company’s new vCloud Hy-brid Service clearly aims to counter this issue.

But VMware must also contend with what might be called an evolving competitive landscape in its core business. The threats from some products, like Microsoft’s Hyper-V and Citrix’s XenServer have been apparent for years. But others, such as Linux-based KVM, have been gaining support among several longtime VMware partners, including IBM and RedHat. We don’t expect these alternatives to make a huge dent in VMware’s core markets in the short run, but over time, they are likely to impact the company’s year over year growth prospects. For that reason alone, the expansion into markets like virtualized networking and endpoints makes great practical and strategic sense.

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NOTE: This column was originally published in the Pund-IT Review.

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