Careers at VMware
VMware’s mission is to radically simplify IT and help customers transform their IT operations.
VMware is a provider of virtualization and cloud software and services. The company has two business segments based on geography: United States and International.
It divides its software and service offerings into three main groups based on end-user benefit:
- Software-Defined Data Center (SDDC): Enables customers to extend private cloud to public cloud and to manage and connect their applications across all clouds and devices.
- Hybrid Cloud Computing: Consists of the vCloud Air Network (“vCAN”) Service Providers Program and vCloud Air (“vCloud Air”) offerings.
- End-User Computing: Consists of Horizon workplace suites and enterprise mobile management solutions.
Diane Greene and Mendel Rosenblum first met as students at the University of California, Berkeley; they eventually married. In 1998 they founded software firm VMware along with Scott Devine, Edouard Bugnion, and Edward Wang. The company officially launched in February 1999 at the DEMO Conference, having grown to 20 employees. In May 1999 it released its first product, VMware Workstation. In 2001 it joined the server industry with VMware GSX Server (hosted) and VMware ESX Server (hostless). In 2003 it introduced three new solutions, VMware Virtual Center, VMotion, and Virtual SMP technology.
The next few years saw some major milestones. In 2004 the company was acquired by EMC Corporation for $625 million. In 2005, it built R&D centers in Massachusetts and New York City. That same year saw the departure of Edouard Bugnion, who had long served as Chief Technology Officer. In 2007 EMC released 15% of VMware’s shares on the New York Stock Exchange in an initial public offering. Despite these accomplishments, 2008 saw modest revenue growth, which led to the firing of Diane Greene as CEO and her replacement by Paul Maritz, a Microsoft veteran. Rosenblum, the Chief Scientist, resigned months later.
Benefits at VMware
Business model of VMware
VMware has a mass market business model, with little differentiation between customer segments. Its customers are organizations seeking cloud and virtualization software solutions.
Its deployments vary in size from individual virtualized servers for small firms to hundreds of virtual machines for its biggest enterprise clients. Three customers account for over 10% of its revenues each: Arrow Electronics (15%), TechData Corporation (12%), and Ingram Micro (11%).
VMware offers four primary value propositions: convenience, performance, cost reduction, and brand/status.
The company’s offerings create convenience through a common platform for all varieties of enterprise computing. It also coordinates with all major software and hardware vendors, helping to ensure seamless integration of a customer’s IT with the platform. Lastly, it simplifies provisioning of business mobility and the unified hybrid cloud with preconfigured EVO hyper-converged infrastructure systems.
VMware’s vCloud Air solution demonstrates a higher performance level than its closest competitors. Independent research shows that it offers three times the storage performance of Amazon Web Services and two times the computing power of Microsoft Azure. VMware estimates that customers would have to spend as much as 83% more to obtain the same performance from those two.
The company’s solutions reduce capital expenses. The vSphere product has a high virtual-machine density – the number of virtual machines that can run per host. This minimizes the number of software licenses and servers that customers need. VMware also limits operational expenses, which are typically three times higher than capital expenses for IT firms. It accomplishes this through more efficient hardware utilization, which lowers downtime costs. Various studies indicate that its virtualization offerings cost 80-90% less to operate than alternatives by Microsoft.
Because of its strong performance, VMware has built a powerful reputation. Its solutions are used by over 500,000 customers across sizes, including 100% of the Fortune 500. Further, many prominent research firms have recognized the quality of its offerings. Gartner identified it as the top company in its Server Virtualization Magic Quadrant. IDC ranked its business mobility solution as #1 in its 2015 Worldwide Virutal Client Computing Software Vendor Assessment. Other organizations providing plaudits include Temkin Group, InfoTech, 451 Research, Gigaom Research, ZDNet, and TechPro.
VMware’s main channel is its direct sales team. The team works with the company’s various channel partners to introduce them to new sales opportunities and end-user customer accounts. Channel partners include distributors, resellers, and systems integrators. The company also sells its products and services through its website.
Furthermore, it promotes its offerings through advertising, social media, direct marketing, seminars, webinars, PR efforts, industry events, and its annual user conference, VMworld.
VMware’s customer relationship is primarily of a self-service, automated nature. Customers utilize its products and services while having limited interaction with employees. The company’s website features “My VMware”, a portal that enables clients to manage all of the licenses and services in their accounts.
That said, there is also a community component as it provides a forum for customers to assist each other and a personal assistance component as it offers phone and e-mail support.
VMware’s business model is wide-ranging. It entails designing and developing its software and offering services to ensure optimal usage of those solutions. The company also maintains the software platform used by its organizational customers.
VMware maintains the VMware Partner Network, which consists of partnership programs that provide training, marketing, and other resources to members. The programs are divided into three categories: Resell, Services, and Technology. They are described further below.
Resell – This category includes the following programs:
- VMware Solution Provider Program – Involves partners that design and combine their virtualization solutions with those of VMware.
- Corporate Resellers – Involves partners with global and national coverage that offer online sales access and provide instantly available inventory.
- Distribution – Involves Authorized Distributors who act as an extension of the company and ensure partners have the support and tools they need.
Services – This category includes the following programs:
- VMware vCloud Air Network Program – Involves firms that provide hosted services to third parties such as Application Service Providers, Internet Service Providers, and Cloud Service Providers.
- Partner Professional Services Program (PPSP) – Involves partners who deliver and sell their own consulting engagements; they receive training and sales support.
- VMware Authorized Training Centers (VATCs) – Involves firms that provide authorized technical training to VMware’s channel partners and customers.
Technology – This category includes the following programs:
- Technology Alliance Partner (TAP) Program – Involves hardware, software, and storage vendors who develop and offer joint solutions to shared clients; there are more than 1,200 partners, who include Dell, Cisco, Fujitsu, IBM, HPE, and Lenovo
- OEM Partner Program – Involves software and hardware companies that integrate their offerings with VMware software to sell joint solutions.
VMware’s main resource is its research and development team. The company’s R&D employees have expertise in systems management, mobile and desktop devices, application development, networking, and open source software.
It also places strong importance on its intellectual property, with 890 patents granted by the U.S. Patent and Trademark Office as of December 2015.
VMware has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is sales/marketing expenses, a fixed cost.
Other major drivers are in the areas of research and development and administration, fixed costs, and cost of services, a variable cost.
VMware has two revenue streams: licenses and services, as described below.
License Revenues: These involve fees paid for licensing of the company’s software. The software is divided into five main categories:
- Local Desktop Virtualization
- Desktop & Application Virtualization
- Data Center Virtualization & Cloud Infrastructure
- Data Center & Cloud Management
- Enterprise Mobility Management
Service Revenues: These involved fees charged for usage of the company’s services, which are divided into five main categories:
- VMware Advisory Services
- VMware Operations Transformation Services
- VMware Technology Consulting Services
- VMware Technical Account Manager Services (TAMs)
- VMware Education Services
info: Earned a Bachelor's degree from Santa Clara University and a Master's degree from Stanford University, both in electrical engineering. He previously served as President and Chief Operating Officer of EMC's Information Infrastructure Products business.
info: Earned a B.S. degree from Embry-Riddle Aeronautical University and an MBA from San Diego State University. He previously served as Executive VP and CFO of EMC, head of North American Sales at Apple, and CFO at Continental Airlines.
info: Earned a Master’s degree in management science and engineering from Stanford University and an MBA from Harvard. He previously held executive roles at SAP.
info: Earned an MBA from the Wharton School at University of Pennsylvania and a Master's degree from the Indian Institute of Technology, Mumbai. He previously held marketing and product management roles at AOL and Netscape.
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