VMware Doing Great -- So Why'd It Dump the CEO?

Just weeks after VMware unceremoniously ditched founder and CEO Diane Greene, you'd think the company would report poor financial results. But no; actually, the company reported great financial results. At least in my opinion.

Second quarter revenues of almost half-a-billion dollars were up 54 percent compared to the same quarter last year. Profits are shining, as well -- up $14 million to $61 million in quarterly profits. And it's expecting to grow almost 50 percent this year compared to '07.

Jeepers. I guess Greene really did mess up! I'm sure there are plenty of companies that would want her to screw them up to the tune of 50 percent growth!

Of course, those stunning growth rates did nothing to please the Brooks Brothers-clad stock set. These clowns say VMware isn't growing as fast as they expected, making Greene a colossal failure in their eyes. Nuts, eh?

Posted by Doug Barney on 07/23/2008 at 1:15 PM0 comments


Facebook Bites Back

Some folks are real dopes -- and there's no better way to discover that than on the Internet. We have thugs posing with guns on MySpace, predators leaving electronic trails of perversion, and now a brand-new idiot: Joshua Lipton.

This 20-year-old moron was caught drunk driving (it's easy to get caught when you crash and nearly kill someone). Then, two weeks later, someone posted Facebook pictures of Lipton posing with a bunch of beer cans and wearing a striped prison shirt. That's not going to look too good at trial.

Do social networking sites like Facebook have any role in your organization? Tell me yes, no or maybe by writing to [email protected].

Posted by Doug Barney on 07/23/2008 at 1:15 PM0 comments


Stunning VMware News: A Free Hypervisor

In the weeks since he took over VMware, new CEO Paul Maritz has been pretty darn quiet. My guess is he was huddling with EMC honchos figuring out what to say. Well, they still haven't announced how independent VMware may or may not be from EMC, and they still haven't announced a grand, new strategy, either.

Maritz did make some rather bold pronouncements in this week's earnings call. First, he announced that ESXi, the embedded hypervisor, will be free. With bundling deals with all the major server makers, this makes ESXi almost part of the operating system.

This is big news, but it's not VMware's first free tool. It has the VMware Player for PCs, and VMware Server, a stripped-down tool, is also free.

Maritz also gave a glimpse of the future. ESX, the enterprise hypervisor, remains immensely important, but the more critical aspect is building out the overall infrastructure.

I think VMware should design infrastructure tools that are totally independent of the hypervisor, and support Xen and Hyper-V. That's VMware's future.

Does a free ESXi change the game? Send your take to [email protected].

Posted by Doug Barney on 07/23/2008 at 1:15 PM0 comments


Mailbag: Google Going Evil?

So is Google becoming Microsoft's evil twin? Here's what a few readers thought:

You're dead-on with your assessment of Google. I've had the same concerns myself for some time now.
-Paul

I have to echo your thoughts. I had rather positive feelings about Google until I was invited to an interview at their shiny new datacenter in Central Oregon last year. After a VERY bizarre interview -- unlike anything I had ever experienced in 20 years in IT -- I did some more checking and had to reach the same conclusion. I don't know for sure if Google is evil, but it is certainly doing a lot to make me think so!

One example: The name of the fake company that it hides behind that houses their datacenter (the sign outside) is "ValDeMoort Industries." Now, I have to ask, who would name their datacenter after the ULTIMATE EVIL character in Harry Potter? It was dumb, but maybe not. Maybe it is really a message?

Honestly, I think Google just suffers from being an extremely immature company run by extremely immature billionaires. Microsoft has had the advantage of 30 years of experience, BG hired some of the top business managers in the world right out of the gate, and he "grew into" his success.
-Jim

Nope, I totally agree with you. While I'm a MS partner and respect MS, I don't always agree with them either -- but at least you can talk to someone.

Google bought Postini recently. If Postini weren't such a great product, we would have dumped it 100 percent becuase of the crap we have been going through. And this is an understatement.
-Don

Yes, I think Google has too much and it needs to be cut back. No one should get any slice of Yahoo; it should stand on its own two feet. Ditto with MS on the same subject, so yeah -- they are becoming the evil twins.

And do you think that MS buying Yahoo's search business will help MS? I don't think it will help at all. MS will screw it up and it will burn. The problem that I see is that what will Yahoo then get for income to do other things such as its one-of-a-kind chat system which feature-for feature kills anyone else? I would invest in Yahoo, but only if King Carl steps down and leaves.
-Bruce

I guess I would rather opt for free services from a vendor that provides open source options for those not willing to fork out money for an expensive OS that is unreliable, less secure and a huge resource hog. I can't wait for the Google phone.
-Nathan

I live in a Microsoft/Dynamics world all day long and I'm happy with that world -- it keeps that regular paycheck coming. But I don't want to see a monopolists dictating to that world, Microsoft, Google or anyone else.
-Ron

Doug recently asked readers to name their favorite defunct IT magazines. Here are some of your nominations:

I'll take InfoWorld over any of the others any day. I wouldn't say it's defunct either. I continue to get lots of good stuff from them.
-Bruce

It's still in print, but nothing the way it was in the "good old days." The magazine: Computer Shopper. To pore over the endless advertisements when looking to build your own systems was priceless.
-Michael

My favorite defunct magazine is not one related to my current occupation: Drag Racing USA. Back in the '70s, before it went defunct, this magazine covered both the races and the newest machines, regardless of what class the car was in.

One of the last magazines that I received featured a new short dragster that Big Daddy built and called the Swamp Rat. Two weeks later, I'm at my local drag strip, Renegade Raceway. Don Garlits brought his longer dragster and raced it. While I was walking through the pits, he was signing some pictures for fans. When he was signing a picture for me, I asked him, "Where is the Swamp Rat?" He looked at me kinda funny and asked, "Where did you hear about that?" I told him, "In Drag Racing USA."

Turns out it was Don's favorite magazine, too, and I got to spend quite a bit of time talking with him between the races about his newest dragster and his career in general. I regret to say that I no longer have that signed picture, but I do have the great memory of getting to talk with one of drag racing's great giants in his prime. That is a memory for a lifetime that would not have happened without that magazine.
-Les

And yesterday, reader Chris suggested that the iPhone fan who got teased by a television reporter while waiting in line should've responded with some snark. One reader thinks that's missing the point:

I think Chris did miss something. It's true that the man in line for an iPhone didn't exactly "own" the reporter, but he also didn't sound like he was going to run home and cry. What he said was on the money. The question was insulting and in no way should pass for news reporting. The idea of attempting humor in response to such a condescending question is inappropriate, and acting like the reporter's behavior was funny would have just encouraged him.

What those news people were doing is like something elementary school kids do whenever they don't understand something. It was nothing but a smug attempt at trying to belittle others to make themselves feel better about themselves. It is a common behavior among luddites or the technically-challenged to attempt to demean those that understand or enjoy what they do not. If anyone wants to eschew electronics, then let them continue to bang blocks of wood together. It's none of my business. I don't see computer experts walking around with microphones asking everyone without the most recent phone or PDA if they are virgins or eunuchs.
-A person who doesn't own an iPhone and probably never will

Tell us what you think! Leave a comment below or send an e-mail to [email protected].

Posted by Doug Barney on 07/23/2008 at 1:15 PM0 comments


Open Source Open to Hacks

Critics love to slap Microsoft around for its security problems. And by admitting its faults each and every Patch Tuesday, Redmond gives these nitpickers plenty of ammo. The open source world tends to keep its flaws more on the down-low -- not exactly hidden, but not exactly disclosed with fanfare, either.

That's why it may be a surprise to some that open source apps have more holes than a pair of hippy jeans, and are far less secure than commercial apps.

Do you trust open source? And do you miss your old, patched, hippy pants? Send answers to both to [email protected].

Posted by Doug Barney on 07/23/2008 at 1:15 PM0 comments


BlackEyeBerry

Research in Motion just plugged a hole in its BlackBerry that could allow hackers to use PDFs to break into BlackBerry servers. The company suggests that customers patch by moving to BlackBerry Enterprise Server version 4.1, service pack 6 for Exchange.

I have a BlackBerry and love the e-mail. I hate, though, the way it deals with attachments -- or doesn't deal with attachments. Talk about a kludge. No wonder so many are switching to the iPhone.

Posted by Doug Barney on 07/22/2008 at 1:15 PM0 comments


Jobs May Be Ill

Rumors have been circulating that Steve Jobs was ill when he showed up to the latest iPhone debut looking thin and gaunt. Apple reps claimed that Jobs was getting over the flu, but rumors persisted, especially since Jobs was diagnosed with cancer of the pancreas several years ago.

Wall Street flipped out over the rumors that Jobs is seriously ill after the company refused to talk about his health on a recent earnings call. Investors promptly started dumping the high-flying stock.

Another indication that Jobs is sick is the fact that Fake Steve Jobs is tossing in the Fake Steve Jobs Towel, and will now post under his real name: Dan Lyons. One theory is that Mr. Lyons wouldn't want to satirize a sick man.

I have no clue what may be wrong with Jobs. My hope is that the cancer is still contained. It could be that his pancreas isn't working and he's fighting against full-on diabetes, which could explain the weight loss. That's not a great scenario, but is far better than metastasized cancer.

Jobs is a rather remarkable man, and losing him as the head of Apple would be a crushing blow for the entire industry. What are your thoughts? Send opinions and comments about Jobs to [email protected].

Posted by Doug Barney on 07/22/2008 at 1:15 PM0 comments


Mailbag: If You Ran VMware

Doug asked readers recently what they would do if they ran VMware and needed to take on Hyper-V's pricing (read: free). Here are some of your suggestions:

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

Add Pat to the ever-growing list of people who don't like Vista:

No, you are not being too rough on Vista. You're just not being rough enough. I have been preaching to all my users not to purchase computers with just Vista alone, but to purchase business PCs with both operating systems on them (Vista with a downgrade to XP). This way, they can choose and later ease into Vista if they want to or when Microsoft cleans it up. Some of my users did not heed the warning, went out and purchased a new computer, and are now complaining, "It operates too slow, can't get on the Internet, stops me from creating documents," and the list goes on and on.

I personally do not own a Vista computer and will not until Microsoft fixes the kernel, but if I wanted to imitate a Vista computer, all I would have to do is to let my XP Pro computer get fragmented and full of temporary Internet files.
-Pat

And if you're an iPhone fan that gets teased for your iFervor, give this reader's advice some consideration:

In response to the YouTube video you referenced, I was really hoping to see some pwnage, but I didn't see or hear any. That guy didn't own the reporter; he sounded like he wanted to go home and cry. Where's his sense of humor? I was expecting some kind of humorous response in response to a pretty humorous question.

How about answering the question, "Have you ever seen a woman naked?" with, "Why, yes, in fact your mom told me I'd get an encore of her performance last night if I stood in line to get her the new iPhone. But I'm actually getting this one for myself. I wouldn't pay to see THAT again." Did I miss something?
-Chris

Got something to add? Let us have it! Leave a comment below or send an e-mail to [email protected].

Posted by Doug Barney on 07/22/2008 at 1:15 PM0 comments


Icahn Edges Closer to Yahoo Control

I didn't see this coming. Yahoo has actually given in to corporate raider Carl Icahn, and is allowing him and two others of his choosing to join the Yahoo board. Icahn now controls three out of the 11 seats.

As owner of 5 percent of Yahoo shares, it makes sense to have Icahn on the board. Then again, he's actively trying to dismantle the company. If I were the Yahoo chairman, I'd treat Icahn like a Mexican jalapeno and steer clear!

Posted by Doug Barney on 07/22/2008 at 1:15 PM0 comments


A Live Mesh Sellout

Some developers interested in trying out the beta of Live Mesh are a bit disappointed. No, not in the software -- in their ability to get it. It seems there's a waiting list to get the test software.

I've read up on Live Mesh and still don't completely get it. Here's what I think I know: Live Mesh isn't a product, but a set of tools that let developers build applications. These applications are designed not just to share data across the Internet, but keep it synchronized, as well. This is a very Lotus Notes-ian concept, which used replication to sync end user machines with databases stored on servers.

There are lots of potential uses for Live Mesh. For starters, consumers can share photos and music, or collaborate on blogs. My ideal use is to have a single place for all my documents, bookmarks and messaging tools. This way, I can have a full environment and data set no matter what machine I'm working on.

I pine for this capability every time my Dell Latitude D520 needs a new motherboard, an all-too-frequent event. In the absence of such a system, I have to kludge together a working system out of an old machine, contact my online backup provided to get my files (this company isn't open at nights or weekends, when I actually do most of my work), and install new bits of software like my IM client.

Redmond magazine columnist Mary Jo Foley examined Live Mesh and found it much more a consumer play. Check out her analysis here.

I know you in IT are much smarter than I am, so how do you keep multiple machines in sync? Save my sanity by e-mailing your techniques to [email protected].

Posted by Doug Barney on 07/21/2008 at 1:15 PM0 comments


Google: The New Microsoft?

I've pointed out many times -- some may say too many times -- that Google has too much power. It knows too much about us (and this is only getting worse), has too much control over Web advertising (which it somehow achieves without creating any of its own content) and now it wants to completely corner the market on Web ads with a proposed deal with Yahoo.

I felt a bit like a voice in the wilderness. Now Bill Snyder of InfoWorld (where I worked back when it still had a magazine) has joined me in the boondocks with a column asking whether we want a monopoly on the Web, and warning that "Google is becoming Microsoft's evil twin."

Am I too tough on Google, or do you also fear a Google monopoly? Comments welcome at [email protected]. And while you're at it, what's your favorite defunct magazine? InfoWorld, Byte, Network Computing, PC/Computing, AmigaWorld? Send your thoughts to [email protected].

Posted by Doug Barney on 07/21/2008 at 1:15 PM0 comments


Software Has Been Berry, Berry Good

As Chico Escuela might say, software has been berry, berry good to Microsoft. And despite the over-hyped Google threat, Microsoft keeps printing money faster than the U.S. mint (though slower than a Chinese bank these days).

Case in point: the most recent fiscal year wherein Redmond brought in over $60 billion (and by Redmond, I mean the company, not the magazine, unfortunately).

The only dark cloud is on the Web, where Microsoft actually lost almost half-a-billion dollars. Microsoft, as it has shown with the Xbox and ERP applications, can weather some rather massive losses as it waits for its strategy to succeed. My opinion? Online services are no different.

Disagree? Tell me where I'm wrong by writing to [email protected].

Posted by Doug Barney on 07/21/2008 at 1:15 PM0 comments


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