Diane Greene: Tech Tyrant?

Ironically, Greene described both as "a hard-driving perfectionist who loves nothing more than to get her way," and loved by her underlings.

Posted by Keith Ward on 08/13/2008 at 12:48 PM7 comments

VMware's Maritz Passes the Test

First came the dismissal of Diane Greene, in a manner that I still consider to be bush league. The bloodless coup that resulted in Greene being kicked to the curb was handled horribly. But that certainly isn't Maritz' fault; he just had the unenviable job of replacing a virtualization legend.

Then came last month's earnings call, in which he had to announce VMware's tanking performance. Again, Maritz had nothing to do with that, being a company newbie. But he still was the bearer of very bad news.

Now comes another P.R. (and, in many cases, IT) disaster: the already infamous ESX/ESXi "Update 2" debacle. Here's yet another situation Maritz has to face, that he had no hand in making. Some bloggers are making the case for how incredibly stupid and egregious this is; I mean, beta code that wasn't removed? The reality, though, is that these types of mistakes happen with every large software developer. Yeah, someone inside VMware (several someones, likely) was asleep at the switch, and those who downloaded the update and have to wait 36 hours for a patch are justified in their outrage.

Again, though, this wasn't Maritz' fault. He just has to suffer the slings and arrows. His response to this outrageous fortune, however, encourages me. The day after it happened, he issued a Web site mea culpa. Writes Maritz:

"We failed in two areas:

* Not disabling the code in the final release of Update 2; and

* Not catching it in our quality assurance process."

He explains that the company will be reviewing its processes, and ends humbly:

"Your confidence in VMware is extremely important to us, and we are committed to restoring that confidence fully and quickly."

There is no passing the buck here, no justification for this screwup, no pointing fingers -- not even at Microsoft! What there is is an admission of guilt and a promise to make changes. That is what's known as owning up to your problems.

One small, but I think significant, aspect of this statement is the fact that Maritz' picture accompanies it. He's saying This is my company now. And this egg is on my face. His picture -- almost a mugshot, given the circumstances -- is attached to this apology. That deflects blame from others and puts it on him, even though it really doesn't belong there. In some ways, it's like a quarterback who plays well in a loss and says "This loss is on me." He takes the pressure off his teammates, and his teammates love him for it.

Well played, Mr. Maritz. Your company is having its difficulties, but lack of a strong (if new) leader at the top doesn't seem to be one of them.

Posted by Keith Ward on 08/13/2008 at 12:48 PM0 comments

Citrix Rate Hike Coming

The situations aren't exactly the same, since the chief complaint about VMware is the price of its products (which have decreased recently with the new giveaway of its lightweight hypervisor, ESXi.) Citrix, until very recently, wasn't a player in the virtualization space, so there hasn't been a lot of time to complain.

I'm sure Citrix will use the same type of rationalization VMware did for raising its prices -- that it's merely the predictable reaction to fluctuating global currencies. As VMware's Mike DiPetrillo explained in a comment under my VMware posting,

Due to the fluctuation of local currencies and the fact that VMware like most global software companies prices in local currency to make the product easier to buy demands periodic price adjustments. You can see this happen at other software companies (including Microsoft and Citrix) on a periodic basis. You even see this in consumer goods. It's basic economics.

My question: Is it basic economics? If you're in Germany or Spain or Japan, do you see it as perfectly acceptable to have a 10 percent rate hike in your virtualization software? Note that I'm not asking this sarcastically, but genuinely interested -- does a rate hike make you start looking for alternatives, or is it just a regular part of your business, that doesn't affect your buying?

Others who posted under the same blog entry differed with DiPetrillo, such as this employee from a "Top 2 tech company":

Our global clients, and Fortune 50, from my involvement, are no longer going to pay just because they have to. When there is only one game in town you pay what is charged. When there are several, you choose which makes the most sense on multiple levels.

I urge you, if you're in this boat (affected by a price hike from a vendor, whether it's VMware, Citrix, Microsoft, and so on), to either respond here in the comments section or reply to me personally.

Posted by Keith Ward on 08/11/2008 at 12:48 PM1 comments

Post 'Stay-Cation' Musings

We went to Washington D.C. and saw the Lincoln, World War II and Korean War memorials, then spent the balance of the day at the Air and Space Museum. Another day, we toured Annapolis, my hometown, and the kids got their first in-depth look at the Naval Academy (although the Chapel, holding the coffin of John Paul Jones, closed four minutes after we got their. Grrr.)

The best trip for me was our Friday visit to Mount Vernon, the home of George Washington. I've never been there before, and it was eye-opening. I figured it would be a tour through the house and a gift shop with overpriced trinkets. It turns out there's much, much more to it than that. The house tour, in fact, is only a small part of the experience. Mount Vernon is amazingly extensive, with a dock, farm, serious museum, and lots more. Did you know that Washington considered himself first and foremost a farmer? (I'm sure many of you know that, but it was news to me). He developed a special type of barn for treading grain. Treading is the process of physically separating the "berries" of wheat from the stalk. He built a 16-sided barn that horses could trot through, stomping on the wheat to separate the berries. Washington was also a very early adopter of crop rotation and use of varying types of fertilizer to increase the harvest. Fascinating stuff. And enough for the kids to do to keep it interesting for them.

For those of you who have read this far, thanks. Now I'll try to squeeze in a little virtualization-related news. Not a lot happened in the virt world last week (fortunately for me); the biggest news I saw was the release of VMware Lab Manager 3. The tighter integration with VMware Infrastructure is a great thing, as blogger Scott Lowe explains.

"Prior to this version, physical hosts running VMware ESX had to be configured for either VirtualCenter or Lab Manager, but not both. This also meant that Lab Manager couldn't take advantage of VMotion, VMware DRS, VMware HA, etc., as all these functions were managed by or configured by VirtualCenter. With that barrier now removed, software development environments can now utilize these functions in conjunction with Lab Manager, and there is no longer a need to segregate VMware ESX hosts into separate farms based on whether they were being managed by Lab Manager or by VirtualCenter."

This natural progression is a welcome step, and is sure to put a smile on the face of every VMware admin out there.

Another thing that interested me was this scary story from the Washington Post. While not specifically virt-related, it should worry anyone who runs, or is even part of, a corporate network. Basically, it shows what can happen when network oversight is the least bit lax. A single rogue admin basically shut down the San Francisco network infrastructure. The admin, an ex-con, locked everyone out; apparently he'd been consolidating password power for several months; by the time he was caught, it was too late.

Lessons? First, do extremely thorough background checks of all admins that have, or can gain, significant network access. Second, remember the cardinal rule of disaster recovery: eliminate single points of failure. In this case, it was a person, rather than a router or switch. So look at your network, and your people, and make sure the Post isn't writing a story about you in the future.

Posted by Keith Ward on 08/11/2008 at 12:48 PM3 comments

Full-Throttle Jazz

Given my passion for the music, I've been searching long for an Internet jazz station that plays the stuff I like (bebop, hard bop, swing, big band), without the stuff I hate (Kenny G., other smooth "jazz"). I've tried lots of different stations, and have, at long last, found a great one. It's WBGO, out of Newark. I've added the Web stream to iTunes, so I just have to click on it and it fires up, without having to hit the Website (this probably isn't news to you Internet radio junkies, but it was a revelation to me.)

I turn it on when I start working in the morning, and leave it on all day. The only time it's off is between 3-4 p.m., the "blues hour." I can't stand blues. I don't know why, but it just doesn't do anything for me. I always listen to a few minutes of it, hoping it will grow on me (the way jazz did), but it never does. But that's alright -- I've got plenty of my own stuff to fill that hour. My latest addition is Somethin' Else, by Cannonball Adderly. What an album. Cannonball, Miles, Art Blakey. I can't get enough of it. It's my first Cannonball CD -- but surely not my last.

If you like jazz, love jazz, or don't know anything about jazz and want to see whether you like or hate it, WBGO is the place to go. Got others that you like? Tell me.

What does this have to do with virtualization? Nothing at all. But life is more than just consolidating servers.

Posted by Keith Ward on 07/31/2008 at 12:48 PM2 comments

Virtualization Review Conference Coming

THE GREATEST CONFERENCE IN THE HISTORY OF CIVILIZATION IS GOING TO BE HELD DEC. 9-11 IN ORLANDO!!!!!!!!

How's that for understatement?

Joking aside (but only for a moment), we'll be holding our inaugural Virtualization Review conference on those dates (with a workshop day on Monday, Dec. 8) at the Gaylord Palms Hotel and Resort, a seriously swanky place. I'm conference chairman; what that means is that I get the blame if the show's lame. Actually, what it means, at least in the context of this show, is that I help shape the content that will be presented.

About that content: we have three tracks of coverage. They are:

• Virtualization Planning and Implementation

This track covers the basics of virtualization -- how to lay the groundwork for getting the most out of your virtual infrastructure.

• Management

Once your virtual infrastructure's in place, you need to manage it. Virtualization brings unique management challenges, and we'll help you get a handle on them.

• Best Practices

Your virtualization infrastructure is humming along, but you need to keep it running smoothly and efficiently.

That copy is from the call for papers, which can be found on the Website. If you're interested in speaking, make sure to fill out the form and send it in ASAP. We're on a pretty tight deadline with this show, so the sooner you contact us, the better.

If you're thinking about attending, I think we'll offer a lot of very cool stuff. This is a content-focused show, and we're planning on having a lot of vendors, including start-ups, at the show. You'll learn a lot about virtualization, and meet really interesting peers, as well as see some of the most inventive products that have come along in years. The virtualization industry is nothing if not tremendously creative; I've talked with many, many of the vendors you'll see at the show, and have been impressed across the board at the forward-thinking of these companies.

Both Executive Editor Tom Valovic and I will, of course, be at the show, and look forward to meeting as many of you as possible. One of my favorite parts of the many shows I've attended (the TechMentor shows during my time with first Microsoft Certified Professional magazine, which became Redmond magazine) is sitting down with the publication's readers at meals and just chatting with them about what's happening in their jobs, and picking their brains about what they like and don't like about the magazine and associated properties.

In the meantime, please let me know what you think about our tracks, what you'd like to see at the show, and anything else on your mind about the conference.

Posted by Keith Ward on 07/29/2008 at 12:48 PM5 comments

Virtualization for Free

Of course, it's easy to by cynical about why VMware's doing this now. Although the company maintains that making hypervisors free follows a historical trend that started with GSX Server, it would be a pretty remarkable coincidence that this happens just as Hyper-V hits the market; in addition, ESXi isn't a mature product that's been on the market for years, like GSX or ESX. In that way, it hasn't followed the normal trend.

The main difference between ESX and the "i" version is the service console: ESX has it, ESXi doesn't (which is also why ESXi is a feathery 32MB). The console is a Linux-based OS that handles certain management functions like backup, hardware monitoring and script execution. But in most ways, the hypervisors are more alike than different: they support the same guests, and can both be patched through VMware Update Manager.

However you slice it, and whatever VMware's motivations, today is a very good day for the industry. As of today, anyone can get into virtualization for free (in fact, it's now cheaper to use VMware for basic virtualization, since ESXi is free, and you need to have Windows Server 2008 to use Hyper-V. Yeah, there's no extra cost for Hyper-V, but the OS isn't free. When the standalone Hyper-V Server comes out later this year, it will cost $28.) There is a healthy offering of hypervisors, with the three most important -- ESXi, Hyper-V and open source Xen -- available for nada. As the immortal Homer Simpson says, "No payments per month -- yeah, I think we can swing that!"

Posted by Keith Ward on 07/28/2008 at 12:48 PM6 comments

VMware's Maritz Promises Changes

First things first: the big news, of course, is that ESXi is going to be given away, starting next week. This isn't exactly shocking news, as most of us expected something like that to happen sooner rather than later. Still, it's good news for the industry, and can only benefit VMware. More potential customers will now try ESXi; when they do a comparison, they will likely find that it's still the most advanced, stable hypervisor out there with the best functionality. The question will then become whether they can afford the superior management and infrastructure tools VMware provides on top of it.

As Senior Director of Product Marketing Bogomil Balkansky told me, there's "no question that making it free gives us an advantage and levels the playing field." I'm in full agreement with that assessment.

Maritz, when it was his turn, spoke in very general terms about everything. He kept repeating that "I've only been here two weeks," and asked, quite reasonably, that his remarks be taken in context. He mentioned Diane Greene's time helming VMware very briefly. I still can't understand why VMware has essentially erased all traces of Greene from its memory banks. No tributes, no rememberances, nothing that gives her proper credit for her central role in founding and building the company. It's quite shocking to me that her legacy has been treated so shabbily by VMware.

Maritz talked at length about where VMware was headed, but offered few specifics, other than making ESXi free and announcing a hiring freeze except for "strategic personnel," whatever that means. Couldn't any and every hire be considered strategic? I'd like to see the non-strategic hires: "And here's Sally McGuire. We're not sure why we hired her, or what she'll be doing; we had some money lying around, and had to do something with it." As I mentioned in the news story, nothing was said about possible layoffs, but I'm sure that VMware employees must be more worried about their jobs than they were a month ago. "I expect to see expenses grow more slowly," Maritz said.

Maritz did say, in answer to a question, that he hasn't "noticed attrition related to Greene's departure." He said he's canvassing employees to get a sense of their morale in the wake of the transition. "One has to expect a certain amount of trauma" when a management shakeup of this magnitude occurs, Maritz commented.

Maritz mentioned serveral times about VMware moving in the direction of cloud computing, which is the current buzzword. No details were offered as to VMware's specific strategy, but it's clear that Maritz will be pushing that direction much harder than Greene did. It's not surprising, considering his focus with Pi Computing.

A great deal of discussion centered around Enterprise Licensing Agreements (ELAs) and the dramatic affect it had on VMware's bottom line. VMware first started offering ELAs in 2007, and they were extremely popular. This year, they became a much harder sell, and have dropped off considerably. Peek attributed the majority of that decline to the "macro" economic environment, meaning the global slowdown. He related an anecdote about one customer who was considering purchasing an ELA worth $2 million. Eventually, the customer decided against it, and instead bought $800,000 worth of products and services. That scenario has become increasingly common this year, to hear the company tell it. Of course, that hurts the steady revenue stream so important to any large company.

Microsoft factors large in VMware's planning as well, despite the company's insistence on trashing Redmond at every turn. Maritz implied that he understands how Microsoft does business (and he's right, of course, although it's been a long time since he was a top guy there), and that VMware is ready for the challenge. VMaritz alluded to Microsoft's marketing and financial might, and how the company can afford to be patient as it chips away at VMware's dominance. But VMware still has a big lead in terms of technology, and will do everything in its power to maintain that gap. This is a company focused on one thing -- virtualization -- while Microsoft is pulled in a thousand different directions daily. That is an advantage VMware will surely press.

My impression of Maritz, from the little bit of detail he offered (again, he was wisely cautious given the fact that he's barely dipped his toe in the pool), was that he's a go-getter who sees lots of new opportunities. That doesn't make him much different from Greene, though. What will he bring to the table that she didn't? I guess we'll find out soon enough.

Posted by Keith Ward on 07/23/2008 at 12:48 PM2 comments

Readers Tell Us How They Would Run VMware

"What would I do if I was VMware? PANIC." - Anonymous

"Well, I would ultimately slash the price of the ESX products, give away the Workstation and servers for free (but have fees for support), add more hardware vendor support or alliance, and publish more books or best practice guide documents." - Cornelio

"Here is a plan for VMware: Provide a hypervisor and a VM maker for home users. Servers are where the money's at, but if you want users to keep your name, you have to provide the same wares at home. Well, maybe not the same, but something that will transfer readily between work and home.

What I envision is a VM platform that would allow a home user to run one or more OSes independent of the hardware. When it's time to upgrade your hardware to a better system, you just package up your system as-is, copy it somewhere (online storage, DVD, whatever), get your new machine and drop it down. How many people are forced to move to Vista (for example) because they got a new laptop? If it were a VMware microkernel, they could just mount their old OS on a new system -- no fuss, no settings to reset, no new or significant nuances to learn. No doubt people would pay a PC premium for this ease of use, and it would knock down Microsoft significantly as it cannot force a vendor to upgrade to its new OS package since any VMware-ready machine would be OS-independent." -Tom

"A price increase might work for Smirnoff vodka, but it won't work for software. It's the death knell for VMware. Just ask your corporate managers who will force you to go with the lower-cost alternative -- especially from a name-brand vendor like Microsoft." -Mike

Let me ask another related question: Do you see VMware dropping the price of ESX anytime soon? If so, what is your predicted timeframe? Tell me.

Posted by Keith Ward on 07/22/2008 at 12:48 PM6 comments

VMware Earnings Call Coming

In the case of last week and much of this, it's duties related to pumping out the magazine that's the main culprit. Our July/August issue is going to be sensational, but it's time-consuming. I hope (and think) that you'll find the tradeoff (less blogging in exchange for the magazine content) to be worthwhile.

In addition, mid-summer (at least here in the States) is a traditionally slow news time. Everyone's on vacation, and work slows to a crawl. Not for everyone, though. For instance, if you work for VMware, things have been hopping lately, haven't they? The most important, influential company in virtualization faces perhaps its most crucial time ever, with the transition from Diane Greene to Paul Maritz, at almost the exact same time Microsoft releases Hyper-V, its "ESX killer" (at least Redmond hopes so).

That's why tomorrow's VMware earnings call takes on special significance. Maritz will be facing the public for the first time as VMware's top dog, and will try to explain earnings numbers that fall below last years' -- how much below, we won't know until tomorrow. But you can bet it will probably be a hefty amount. VMware said, in the same release announcing Greene's departure and Maritz' arrival, that "While VMware is not updating guidance for Q2, we expect revenues for the full year of 2008 will be modestly below the previous guidance of 50% growth over 2007."

I'm still fascinated that VMware conflated all these events in one press release. It wasn't enough to announce that one of your founders is out, replaced by a formerly very high-ranking Microsoft exec? It still smells vaguely of scapegoating to me.

In any event, Executive Editor Tom Valovic and I will be on the call, and we'll let you know what happens ASAP after the call. I don't think it's hyperbole to state that it's one of VMware's most important events ever. Everyone will be watching and listening, trying to glean whatever can be learned about VMware's direction and plans for the near, mid, and far future.

Stay tuned.

Posted by Keith Ward on 07/21/2008 at 12:48 PM2 comments

VMware Raising Prices in Europe, Elsewhere

Raising prices? VMware? There is one complaint about VMware that eclipses all others, and it's the high price of its offerings. It's a minimum of $3,000 to add an ESX server to your infrastructure. Heck, even the non-UI version, the embedded ESXi, costs $500. Then there's the upsell, which Andrew Kutz points out in the July/August issue of our magazine is likely to end up costing you at least $5,750 if you want features like VMotion.

It's simply mind-boggling that at this precarious stage in its history, with well-loved co-founder and CEO Diane Greene getting sacked and replaced by a Microsoftie, that VMware would further increase the cost gap between its products and the competitions'. Hey VMware, you might have heard about this free, competing hypervisor named Hyper-V. It made all the papers.

I pay $4 a gallon for gas these days. It's because I have to. But if there were gas available for free, or 50 cents a gallon, where do you think I'd get my gas? Sure, it may be that the cheaper gas won't give me all the performance of the premium stuff, but it will still get me around town. This is the position in which VMware finds itself. Yeah, Hyper-V, XenServer, Virtual Iron, Novell and all the rest may not do everything VMware does -- but they do enough of what many (most?) customers want. Given that reality, how many of those customers will continue to pay top dollar, when there are much cheaper, and quite viable, alternatives on the market?

With VMware's profitability down, and the company in its first major executive transition, this is hardly the time to be jacking up prices, further disenchanting current -- and potential -- customers. Bad, bad move, VMware.

Posted by Keith Ward on 07/11/2008 at 12:48 PM15 comments

Supported Hyper-V Hosts

Find the list here.

Posted by Keith Ward on 07/11/2008 at 12:48 PM5 comments