Busy day at VMware ended yesterday with Ragurham as CEO and COO Poonen exiting – TechCrunch

They say for each door that opens one other closes, and the manager shuffle at VMware is actually proving that outdated chestnut true. Four months after Pat Gelsinger stepped down as CEO to return to run Intel, the digital machine pioneer introduced yesterday that long-time exec Raghu Raghuram was taking over that position.

That set in movement one other change when COO Sanjay Poonen, whom some had speculated would possibly get the CEO job, introduced yesterday afternoon on Twitter that he was leaving the company after seven years.

Coincidence? We suppose not.

Holger Mueller, an analyst at Constellation Research, says that he was shocked that Poonen didn’t get the job, however maybe the VMware board valued Raghuram’s product focus extra extremely. “At 50, he [would have been] a long-term solution, and he did a great job on the End User Computing (EUC) side of the product before becoming COO. I guess that it is still not VMware’s core business,” he mentioned.

Regardless, Mueller nonetheless preferred the selection of Raghuram as CEO, saying that he introduced stability and reliability to the place, however he sees him doubtless as a strong interim resolution for a number of years as the corporate spins out from Dell and turns into a completely impartial group once more.

“Obviously the board wanted to have someone who knows product, and has been there a long time, and is associated with the VMware core success — so that creates relatability [and stability].” He added, “At 57 he is the transitional candidate, and a good choice, a veteran who is happy to run this two-three or maybe five years and won’t go anywhere [in the interim]. And the board has time to find a long-term solution,” Mueller informed me.

Mark Lockwood, lead analyst on VMware at Gartner, sees Raghuram as the precise man for the job, with no reservations, one who will proceed to implement the present technique whereas placing his personal stamp on the place.

“That the VMware board chose someone in Raghu Raghuram who has been the technical strategy executive inside the company for years speaks volumes about the board’s comfort level with the existing strategy trajectory of the company. Mr. Raghuram will most certainly steer the company slightly differently than Mr. Gelsinger did, but at least from the outside, the CEO appointment appears to be a stamp of approval on the company’s broad portfolio,” Lockwood mentioned.

As for Poonen, he says that the writing was on the wall when he didn’t get the promotion. “Although Sanjay Poonen has indeed been a valuable executive for VMware, it was always unlikely that he would remain if not chosen for the CEO role,” Lockwood mentioned.

Stephen Elliot, an analyst at IDC, was additionally bullish on the Raghuram appointment, saying he brings a broad understanding of the corporate, and that’s necessary to VMware proper now. “He understands VMware customers, the technologies, M&A, and the importance of execution and its impact on profitable growth. He has been central to almost every successful strategy the company has created, and been a leader for product strategy and execution. He has a very good balance of making tactical and strategic moves to anticipate the value VMware can deliver for customers in a one-three year horizon,” Elliot mentioned.

Elliot thinks Poonen shall be simply superb and will discover a touchdown spot fairly rapidly. “He is another very talented executive; he will become a CEO elsewhere, and another company will be very lucky,” he mentioned. He says that it’s going to take time to see if there’s any affect from that, however he believes that VMware shouldn’t have hassle attracting different govt expertise to fill in any gaps.

For each govt transfer, there are decisions for replacements, and subsequent fallout from these decisions. We noticed a full-fledged instance of that yesterday on show at VMware. If these business specialists are proper, the corporate selected stability and reliability and a deep understanding of product. That would appear to be strong sufficient reasoning on the a part of the board, although Poonen leaving appears to be collateral harm from the choice, and an enormous loss for the corporate.

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