Thursday 3 September 2015

VMware was Surprised to Find out that its Biggest Rival, Cisco, Owned 5% of its Company

Cisco and VMware technology two great rivals, clashed class this week.

In one corner, VMware had its largest customer conference, VMworld, where more than 23,000 people flocked to San Francisco. One thing we hear: how VMware plans to overthrow the king Cisco network industry.In the other corner, Cisco had its largest expo Global Sales Experience in Las Vegas, where the sales force of 20,000 strong is pumped to exit and sell (and beat VMware).

In pre-show interview with Business Insider, the VMware CEO Pat Gelsinger said that among several new businesses VMware billion dollars of potential up-and-coming, who is more excited about the product NSX, which competes with Cisco. "This is an industry that operates under essentially the same architecture for 25 years," said Gelsinger. NSX described as "radical".

NSX wine $ acquiring a company called Nicira US1.25 billion a year in which VMware exceeded Cisco to launch VMware ago, and in the process destroyed the relationship with your partner once near Cisco, EMC. (EMC is the parent company of VMware.) Cisco, John Chambers, was trash talking VMware and Nicira treatment since then.

This week, Gelsinger said in essence that the network cameras worldwide resentment EMC CEO Joe Tucci, because the acquisition. "The relationship between Joe [Tucci, CEO of EMC] and John, this was a very exciting one another. Personally, I am anxious and looking for a more collaborative relationship with Chuck [Robbins, new CEO of Cisco] because this was a deeply personal issue between John and Joe emerged ".

And there's a good reason why Gelsinger want to make friends with Robbins. While the two companies clash in the market, Cisco has quietly been buying a large stake in VMware.A biggest game he knew of VMware.

A month later, VMware has released its annual proxy statement earlier this year, VMware has had to upgrade because they "realized" that Cisco now has more than 5% of VMware, 6.5 million shares, VMware said.This participation does not give sufficient voting Cisco to say, overthrow the board of VMware and VMware does kill the product NSX. But an activist investor is trying to get a fix to sell EMC VMware. And if that wins investors, Cisco is sitting pretty.

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