EditorsAbout the SiteComes vs. MicrosoftUsing This Web SiteSite ArchivesCredibility IndexOOXMLOpenDocumentPatentsNovellNews DigestSite NewsRSS

09.10.08

Maritz and Tucci’s Microsoft Slog Against VMware

Posted in GNU/Linux, Microsoft, Novell, Virtualisation, Windows, Xen at 8:40 am by Dr. Roy Schestowitz

Microsoft dirty tactics

Microsoft’s infamous “tilt into the death spiral” humour is not so funny. Rather than build superior products it is trying to destroy rivals and eliminate choice in the market, not only to reduce real choice. Today’s new discussion is based on VMware, which was covered extensively in the past two days’ news.

“Therein you have many of the characteristic of what Microsoft refers to as “The Slog”, which is beyond just “guerrilla marketing”.”We have already documented some examples of Microsoft tactics for countering competition. Familiar patterns include dumping, shared monopoly alliances, financial games, targeted brain drains, and aggressive/hostile acquisitions. That last pattern happens to be a warning about Microsoft’s attempts to scoop up or attack the competitors one by one.

A previous post showed some new example of cases where Microsoft executives influence Microsoft's potential rivals, which no longer are. They are likely to become more obedient due to the inter-personal issues at play (bearing in mind that companies are just people and — accordingly — their behaviour is a personal thing too).

Some of the latest maneuvers against VMware are being played while insulting the competition using paid allies, e.g. Yankee Group [1, 2], and having partners make a lot of noise over yet-inexistent Microsoft technology. Therein you have many of the characteristic of what Microsoft refers to as "The Slog", which is beyond just “guerrilla marketing”.

Looking at VMware for some details, Vance reveals the ugly story behind it.

In the summer of 2007, Diane Greene was lauded as a business hero for leading VMware, a maker of business software, to the hottest stock debut since Google. But in the ensuing year, despite her popularity with employees and on Wall Street, her relationship with her directors, and especially VMware’s chairman, Joseph M. Tucci, grew increasingly chilly.

On July 7, she found out just how cold it had become. After Ms. Greene made a special presentation to VMware’s board, Mr. Tucci, who heads VMware’s parent company, EMC, pulled her aside, according to people familiar with the events, who asked for anonymity because they were not authorized to discuss internal company decisions.

Inviting Mendel Rosenblum, Ms. Greene’s husband and the co-founder of VMware, into the room, Mr. Tucci told Ms. Greene she was fired, effective immediately. And he said the board wanted Mr. Rosenblum, VMware’s chief scientist, to take her seat on the board. Mr. Rosenblum declined the offer.

[...]

And VMware’s new chief executive, Paul Maritz, once a top executive at Microsoft, is fighting to articulate how VMware can evolve from a darling upstart to a mature player capable of maintaining its growth while facing off against some of the world’s technology heavyweights.

What a surprise! Not.

Microsoft’s partner of the year is appointing Microsoft leadership instead. It’s all about EMC and it’s some kind of war over the future direction at VMware. Microsoft is trying to ‘pull a Netscape’ against it with zero-cost and bundling of technology. VMware indicated over a year ago that antitrust action would be considered, but what is VMware now? Under the regime of a Microsoft executive (Paul Maritz) and top Microsoft partner (Joseph Tucci), it seems to have become just a corpse of its former self and a ‘yes man’ to Microsoft. In essence, VMware has been ‘hijacked’ not by investors but by companies it enabled to gain power over it, notably EMC.

The ‘older-generation’ employees of VMware dislike the new management, which mistreats and sacks the founders. Here is some more new evidence of the backlash.

We’ve been told virtualization is the fastest evolving sector of the computing industry. But now, VMware is running on autopilot without its key scientists, and Microsoft hopes another delay won’t hurt it too much.

[...]

Rosenblum’s colleague, executive vice president for R&D D. Richard Sarwal, resigned from VMware just last week to return to his former employer, Oracle. And The New York Times learned that Paul Chan, VMware’s VP for product development, already left the company last month without the company making a sound.

Dow Jones wrote about this too. Over at The Inquirer, this partnerships parade of Microsoft gets another mention with the addition of AMD, a Novell ally.

AMD HAS TEAMED up with Microsoft in a bid to jointly take a bigger slice of the server virtualisation market.

The two companies are offering a joint model which combines the Opteron’s AMD-V and Windows Server 2008 Hyper-V to streamline virtualisation on a hardware and software level.

It must not be forgotten just how close Novell is to Microsoft in that regard, working alongside its partners of the year at Citrix, which grabbed Xen away from Red Hat, Ubuntu and other GNU/Linux vendors. Here are some more new details.

“Microsoft has been working closely with the likes of Novell and Citrix to ensure support for non-Microsoft technology.”

It’s important to remember that Novell relies on Microsoft’s mercy and hopes that Microsoft will let SUSE gain advantage over Red Hat through virtualisation. In fact, Ron Hovsepian’s coming talk will be focused primarily on some of these issues.

Novell today announced Ron Hovsepian, president and CEO, will deliver a keynote at Interop New York on Wednesday, Sept. 17 at 10 a.m, at Jacob Javits Convention Center in New York City. The Interop New York conference is focused on providing comprehensive thought-leadership on key IT topics and the future of business technology. In line with those themes, the keynote, “Making IT Work As One,” will outline Novell’s solutions strategy, with a focus on delivering customer value by reducing cost, complexity and risk in today’s mixed IT environments.

In order to erode VMware’s strong position even faster, Microsoft will be doing what it does best: dumping.

Microsoft offers free Hyper-V stand-alone version

[...]

Hyper-V is Microsoft’s entry into the crowded field of virtualization vendors where the hypervisor is looking more and more like a commodity. VMware is the dominant player, but Citrix, Oracle, Red Hat, Sun and Novell are among those offering virtualization technology.

There is a lot of hyping up around Hyper-V at the moment. The Linux-hostile Sys-Con [1, 2] has just aired the article “The End of VMware!” Announcing a death prematurely to make it so? The editor stripped off the exclamation mark later, but the headline is still damaging. This smells like classic “Slog” tactics. Microsoft ‘talking point’ Ivy Lessner wrote another article indicating VMware despair.

This is not competition. This is a slog.

“Ideally, use of the competing technology becomes associated with mental deficiency, as in, “he believes in Santa Claus, the Easter Bunny, and OS/2.” Just keep rubbing it in, via the press, analysts, newsgroups, whatever. Make the complete failure of the competition’s technology part of the mythology of the computer industry. We want to place selection pressure on those companies and individuals that show a genetic weakness for competitors’ technologies, to make the industry increasingly resistant to such unhealthy strains, over time.”

Microsoft, internal document [PDF]

Share this post: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • del.icio.us
  • Reddit
  • co.mments
  • DZone
  • email
  • Google Bookmarks
  • LinkedIn
  • NewsVine
  • Print
  • Technorati
  • TwitThis
  • Facebook

If you liked this post, consider subscribing to the RSS feed or join us now at the IRC channels.

Pages that cross-reference this one

3 Comments

  1. DOUGman said,

    September 10, 2008 at 6:20 pm

    Gravatar

    Interesting part about Vmware, I had not known any of that or failed to read about it earlier.. I wonder how Vmware will be regarding Linux in general in a few years.

    D.

  2. Jose_X said,

    September 10, 2008 at 9:46 pm

    Gravatar

    I was wondering how Maritz got in.

    Maybe things went down like this:

    Some big players (not necessarily just at Microsoft but maybe) decided closed-source VMWare did not stand a long-term chance without levers and anchors like Microsoft has. After convincing key EMC people also worried to death about FOSS (eg, Tucci), it was likely decided they would get (the equiv of) money to buy VMWare. The technology would be allowed to migrate over to Microsoft. They took it public in order to squeeze out remaining value in VMWare by dumping inflated shares on the public. Also, the VMWare brand will now likely be destroyed, and some people will get payed well. Most of the honest and hard-working, however, will likely be looking for jobs soon.

    Don’t mean to sound the end of VMWare, but this has probably been decided by actions already taken. That’s what it sounds like to me from what I have been reading on BN and elsewhere.

  3. Roy Schestowitz said,

    September 11, 2008 at 1:00 am

    Gravatar

    Virtualisation turns from a product into a feature. But the solution here seems to favour the wrong company.

What Else is New


  1. Links 24/6/2016: Xen Project 4.7, Cinnamon 3.0.6

    Links for the day



  2. Benoît Battistelli Should Resign in Light of New Leak of Decision in His Vendetta Against Truth-Telling Judge (Updated)

    Benoît Battistelli continues to break the EPO's own rules, not just national laws, as a new decision helps reveal



  3. Fake Patents on Software From Fake Australian 'Inventor' of Bitcoin and the Globally-Contagious Nature of EPO Patent Scope

    News from Australia regarding software patents that should not be granted and how patent lawyers from Australia rely on European patent law (EPO and UK-IPO) for guidance on patent scope



  4. Patent Lawyers Love (and Amplify) Halo and Enfish, Omit or Dismiss Cuozzo and Alice

    By misinterpreting the current situation with respect to software patents and misusing terms like "innovation" patent lawyers and others in the patent microcosm hope to convince the public (or potential clients) that nothing in effect has changed and software patents are all fine and dandy



  5. Looks Increasingly Plausible That Battistelli is Covering up Bogus and/or Illegally-Obtained 'Evidence' From the EPO's Investigative Unit

    Why we believe that Benoît Battistelli is growingly desperate to hide evidence of rogue evidence-collecting operations which eventually landed himself -- not the accused -- in a catastrophic situation that can force his resignation



  6. As Decision on the UK's EU Status Looms, EPO Deep in a Crisis of Patent Quality

    Chaotic situation at the EPO and potential changes in the UK cause a great deal of debate about the UPC, which threatens to put the whole or Europe at the mercy of patent trolls from abroad



  7. Another Demonstration by European Patent Office (EPO) Staff on Same Day as Administrative Council's Meeting

    SUEPO (staff union of the EPO) continues to organise staff actions against extraordinary injustice by Benoît Battistelli and his flunkies whom he gave top positions at the EPO



  8. Links 23/6/2016: Red Hat Results, Randa Stories

    Links for the day



  9. Interview With FOSSForce/All Things Free Tech

    New interview with Robin "Roblimo" Miller on behalf of FOSSForce



  10. Links 22/6/2016: PulseAudio 9.0, GNOME 3.21.3 Released

    Links for the day



  11. IP Europe's UPC Lobbying and the EPO Connection

    The loose but seemingly ever-growing connections between AstroTurfing groups like IP Europe (pretending to represent SMEs) and EPO staff which is lobbying-centric



  12. EPO “Recruitment of Brits is Down by 80%”

    Letter says that “recruitment of Brits is down by 80%” and "the EPO lost 7% of UK staff in one year"



  13. The Conspiracy of Patent Lawyers for UPC and Battistelli's Role in Preparing by Firing People

    The parasitic firms that lobby for the UPC and actually create it -- firms like those that pass money to Battistelli's EPO -- are doing exactly the opposite of what Europe needs



  14. Patent Lawyers, Having Lost Much of the Battle for Software Patents in the US, Resort to Harmful Measures and Spin

    A quick glance at how patent lawyers and their lobbyists/advocates have reacted to the latest decision from the US Supreme Court (Justice Breyer)



  15. Links 21/6/2016: Fedora 24 and Point Linux MATE 3.2 Officially Released

    Links for the day



  16. Supreme Court on Cuozzo v Lee Another Major Loss for Software Patents in the United States

    Much-anticipated decision on the Cuozzo v Lee case (at the highest possible level) serves to defend the appeal boards which are eliminating software patents by the thousands



  17. As Alice Turns Two, Bilski Blog Says 36,000 (Software) Patent Applications Have Been Rejected Thanks to It

    A look back at the legacy of Alice v CLS Bank and how it contributed to the demise of software patents in the United States, the birthplace of software patents



  18. EPO Self-Censorship by IP Kat or Just Censorship of Opinions That IP Kat Does Not Share/Accept (Updated)

    ree speech when it's needed the most (EPO scandals) needs to be respected; or why IP Kat shoots itself in the foot and helps the EPO's management by 'sanitising' comments



  19. Caricature: Bygmalion Patent Office

    The latest cartoon regarding Battistelli's European Patent Office



  20. Links 21/6/2016: GNU/Linux in China's HPC, Linux 4.7 RC4

    Links for the day



  21. Under Battistelli's Regime the EPO is a Lawless, Dark Place

    How the EPO's Investigative Unit (IU) and Control Risks Group (CRG), which is connected to the Stasi through Desa, made the EPO virtually indistinguishable from East Germany (coat of arms/emblem above)



  22. New Paper Demonstrates That Unitary Patent (UPC) is Little More Than a Conspiracy of Patent 'Professionals' and Their Self Interest

    Dr. Ingve Björn Stjerna's latest paper explains that the UPC “expert teams” are in fact not experts but people who are using the UPC as a Trojan horse by which to promote their business interests and corporate objectives



  23. Money Flying to Private Companies Without Tenders at Battistelli's EPO (by the Tens of Millions!)

    Extravagant and cushy contracts to the tune of tens of millions of Euros are being issued without public scrutiny and without opportunities to competition (few corporations easily score cushy EPO contracts while illusion of tendering persists -- for small jobs only)



  24. Patent Examiners and Insiders Acknowledge Profound Demise in Patent Quality Under Battistelli

    By lowering the quality of patents granted by the European Patent Office Battistelli hopes to create an illusion of success, where success is not measured properly and is assessed by biased firms which he finances



  25. Jericho Systems Threatens Alice, Court of Appeals for the Federal Circuit Threatens the Patent Trial and Appeal (PTAB)

    A look at the two latest threats to those who helped put an end to a lot of (if not most) software patents in the US



  26. How the Halo Electronics Case Helps Patent Trolls and How Publications Funded by Patent Trolls (IAM for Instance) Covered This

    A Supreme Court ruling on patents, its implications for software patent trolls, and how media that is promoting software patents and patent trolls covered it



  27. Patent Lawyers' Fantasy Land Where Software Patents Are Suddenly Resurrected Even When They're Not

    A quick glance at where the debate over software patents in the United States stands and how profiteers (such as patent lawyers) not only mislead the public but also bully the messengers



  28. Links 19/6/2016: Randa Over, Fedora 24 Release Soon

    Links for the day



  29. [ES] La Oficina Europea de Patentes de Battistelli Amplia su Contrato con el Nefasto FTI Consulting Para Neutralizar a los Medios, Desperdicia Millones de Euros

    Sacando a luz a lo que pasa con el presupuésto de la EPO y como es puesto “a trabajar” bajo la tiranía sin precedente de Battistelli (Eponia) justo en el corazón de Europa



  30. [ES] Oportunos ‘Regalos’ de Battistelli a los Estados Miembros (Poco antes de que Ellos Puedan — y Deberían — Despedirlo)

    Regalso de la EPO (dinero) ofrecido condicionalmente (bajo revisión) días antes de que los países envíén sus delegados para que potenciálmente despidan a Battistelli, lo que ciértamente deberían hacer, y lo último del juicio de un juez nos sugiere que Battistelli está determinado a destruír a las salas con ayuda de esos delegados


CoPilotCo

RSS 64x64RSS Feed: subscribe to the RSS feed for regular updates

Home iconSite Wiki: You can improve this site by helping the extension of the site's content

Home iconSite Home: Background about the site and some key features in the front page

Chat iconIRC Channel: Come and chat with us in real time

CoPilotCo

Recent Posts