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March 12, 2013


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As you know, I hold you in the highest regard – and in many ways our disagreements are indicative of what is wrong with big data. That is, we are both data-driven people who take in as much as we can from our vantage and then digest and extrapolate, but we are extrapolating from different samples, and so I was hoping to present things from my prevue, and my thanks to you for allowing me to do so on your blog.
Here are my assertions:

1. EUC is the redheaded stepchild of VMware

2. VDI is the redheaded stepchild of the EUC group at VMware

Here is my analysis:

The “big news” in VMware-land is that they want to be a public cloud provider. Prosecuting on this strategy will require all hands on deck, because the VMW field is generally used to a one-trick-pony approach. I make no claims to know whether this approach will be successful or not, but I know it’s a world away from delivering end-user Windows workloads, and certainly has nothing to do with Horizon. Most telling, “VDI” hasn’t been mentioned in neither of VMware’s most recent earnings calls.

In your post you mentioned blogs by Vittorio Viarengo and Chris Wolf. We can start with the latter who earlier today tweeted:

“Horizon demo for Windows apps on iPad still didn't include any touch and swipe capabilities. Same poor user experience. #NotImpressed”

And Vittorio, who having owned the reigns of EMM at VMware, jumped ship to Mobile Iron – a direct competitor for Horizon Mobile.

The Citrix field who jumped ship to VMW did so because (I believe) VDI is reaching critical mass. Talk to any Citrix or VMware VAR about VDI and you will hear the percentage of undeployed shelfware is staggering. In many ways, hearing about reps from CTXS jumping to VMW is actually discouraging for VMW, these are one trick ponies.

I just don’t see any real R&D ingenuity, or a push to get EUC better. I would have been more impressed by VMware hiring away an army of engineers from Citrix. I believe the hiring of a large field focus on EUC is either a Hail Mary by Pat to see if there’s any meat in this EMM pie, or lip service to keep morale high while developing a contingency.

To execute, VMware needs to focus on real enterprise workloads. While they claim their three growth opportunities are the software-defined datacenter, hybrid cloud, and end-user computing – if we play “which of these three doesn’t belong”, and we look to the SlideRocket divesture as an indicator, I think that unless Horizon adoption literally explodes on some self-propelled momentum, the best play for VMware is to sell the EUC unit (or spin it off) in order to focus on enterprise cloud workloads.


Steve Kaplan (@ROIdude)


Thanks for your comment; the "highest regard" is certainly mutual.

Your logic is exceptional, but I belive it is based upon a faulty premise that EUC is just another silo business for VMware that it could nonchalantly sell or spin off in order to focus on its core competency.

VMware recognizes that the desktop is an essential component of both the SDDC and hybrid cloud. After all, everything starts with the user, her access point and her applications. As a complete cloud enabler (and now provider), VMware has no choice but to develop an even greater committment to EUC.

I also disagree with your statement about a lack of R&D ingenuity. In addition to exceptional innovative technologies acquired externally such as Mirage, VMware is rapidly producing organic enhancements such as View Accelerator, HTML access, increased integration with UC options, etc.

EUC is a very big space and, as mentioned in my post, VMware has internal politics to contend with that Citrix avoids. Still, the vision is coming together nicely and setting the stage for true integration with both SDDC and hybrid cloud.

A $6B organization is not likely to make the largest investment in its history to see if there's any meat in the pie. And EUC is the fastest-growing division in VMware meaning that they're nowhere near the necessity of a Hail Mary.

To me, the massive EUC hiring is yet further evidence that EMC is absolutely strategic to VMware's future.


I suppose this is where we sit back and wait to see who owes who a beer next year :)

Steve Kaplan (@ROIdude)

I'm game. We just need to decide the winning criteria. If it's whether or not VMware spins off/sells EUC - then I'm going to start researching the most expensive beers right now :)


I think it might take longer for spin off/sale to happen. Can we instead qualify winning/losing based on whether EUC is still identified as a growth opportunity on the VMW Q1 2014 earnings call?

Steve Kaplan (@ROIdude)


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