Head of VMware - about the company's strategy and work in Russia after the deal Dell with EMC

    Recently, the attention of the IT community has been attracted by the activities of EMC Corporation (owns 80% of VMware and RSA ).

    On October 12, Megamind wrote that Dell had come close to concluding a takeover deal with EMC Corporation. The companies agreed on everything, it remains to carry out technical procedures and close the deal. Dell will pay EMC $ 67 billion. The deal, in fact, is the largest in history. EMC now costs twice as much as Dell.

    On October 29, EMC and VMware announced their plans to launch a new cloud services business. To do this, they will create a new unit based on Virtustream, which will combine the already created cloud solutions with Virtustream projects. A company with the Virtustream brand will be owned by both VMware and EMC.

    Yesterday, November 3, it became known that Dell plans to sell $ 10 billion in assets before acquiring EMC. This will reduce your debt burden in advance of the purchase. Assets sold may include Quest Software and Perot Systems , SonicWall, and AppAssure .

    The head of VMware’s representative office in Russia and the CIS, Alexander Vasilenko, told CNews about how the EMC deal with Dell will affect VMware partners, the company's strategy and trends in the global IT market.

    "Megamind" provides the most interesting statements from the interview .

    About Dell EMC Acquisition

    To understand the changes, you need to remember what the situation was like before this event. Three different companies worked in the market: Dell, EMC, and VMware. The first company is private, it is controlled by the founder Michael Dell, who in 2013 bought it from shareholders and removed it from the stock exchange. The other two companies are public, they are traded on the stock exchange and report to the boards of directors. An important fact: EMC owned approximately 80% of VMware, but the companies always acted independently. Why was that? Because at the time of controlling interest in 2004, VMware had already created a whole ecosystem of partners that needed to be preserved. EMC then opted for full VMware autonomy.

    We continued to work with all partners, including EMC competitors. At the very beginning, there was a lot of talk that independence in such conditions was impossible, and that the owner of a controlling stake would still require some kind of preference. More than 10 years passed, and the market became convinced that we were really independent all this time. What happened now? It was announced that Dell would buy back all EMC shares from the market. That is, in fact, EMC will also become a private company, it will enter the Michael Dell Corporation. But nothing has changed for us - we are still an independent public company.

    And now, like 11 years ago, I hear opinions, and suddenly VMware will work with only one corporation ... Nothing of the kind. From the very beginning, we have fundamentally created platform-independent solutions. What is the point now to abandon this advantage and become attached to one manufacturer?

    About how relations with Russian partners will change after the deal

    This question has already been answered by Michael Dell. He clearly stated that VMware will remain an independent public company, in the activity of which he will not interfere and will not limit its relations with any other companies. At the moment, the transaction has not yet been completed - it will be closed in a few months, because a rather lengthy procedure should take place. And, when this happens, VMware will not change its position in the market and the direction of work. The plans will remain as they were before the announcement of the transaction. In Russia, due to the latest announcements, no changes will be made for VMware customers. VMware’s strategy is the same - helping our customers change with a changing world.

    About global trends in IT markets

    The main driver of change in the modern world is information technology. The influence of IT has led to the fact that today the critical factor of market dominance is not the size of the company, but the speed with which it is able to support change.

    We can ask the IT director of any bank a question about its priorities, and hear not only the usual answers about technologies, but also, for example, that he needs to look for ways to compete with new companies that are not related to the banking sector, but are engaged, for example , electronic payments. Moreover, these companies work in a certain sense easier, because they play by simpler rules, are not in the focus of regulators.

    All major banks have released mobile applications, they all begin to work with new tools, such as social networks. This is because banks have an understanding: competition in this market will be tightened, moreover, by methods that did not exist before.

    The second factor affecting modern markets is the emergence of large companies that do not own significant tangible assets. Examples are known. Uber, a company that has not bought a single taxi car, has become the largest carrier in the world.

    Or, for example, Airbnb, which does not own a single apartment, but rents out housing around the world. Facebook is, in fact, the largest distributor of content, but does not create it. Suddenly, the business found out that to do business, you did not need to own anything. This, if you want, is such an arrangement of the concept of cloud technologies on business. And such a colossal shift would not have been possible without an appropriate IT platform.

    About VMware Strategy in a Changing World

    The first area is software-defined data centers, or software-defined data center. We believe that in a modern data center all components should be software-defined (server-based, network-based, and storage infrastructure). Plus, an appropriate management and security system is needed. Interestingly, it was VMware that coined the term software-defined about four years ago, and today it stands for one of the main trends changing the world.

    In fact, the entire IT world is now becoming "software defined." It is won not by the one whose hardware is faster, but by the one who can provide additional service at the expense of the software. If the first global direction of VMware development is connected with the development of data centers, the second concerns the approach to the user.

    He must receive the corporate service he needs on any device, anywhere, in compliance with all security requirements. People use their own smartphones and tablets at work (the BYOD concept), solve service tasks with their help, and these devices need to be integrated into the security system of each company. To prohibit such use is useless. If you can’t ban it, head the process yourself.

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