Channel Marker

Feb 14 2008   2:44PM GMT

VMware employee attacks Citrix for XenSource buy



Posted by: Bcournoyer
Tags:
Channel partner programs
Microsoft
Open-source
Virtualization

VMware’s attempts to drive a wedge between virtualization partners Microsoft and Citrix first became public last month, when what was supposed to be an internal memo to VMware’s sales staff leaked online.

Today the feud escalated when Mike DiPetrillo posted on his personal blog a scathing 650-word criticism of Citrix’s XenSource acquisition. Virtualization.info identifies DiPetrillo as a VMware industry research and competitive analysis engineer and says his attack is “even worse” than last month’s leaked memo.

In the blog entry, “Citrix Acquires XenSource — Still Scratching My Head,” DiPetrillo says “it’s just crazy” that Citrix spent $500 million for XenSource and claims that XenSource will have lost $13 million for Citrix from the fourth quarter of 2007 through 2008. He also goes after Citrix’s channel strategy:

“In Q3 XenSource announced 1,000 customers. On the call they said they added another 400 customers. Good growth! That puts the total at 1,400 customers. Then came the partner count – 1,817 partners certified to sell XenSource. Hmmm. So now we have 1,817 partners trying to get business from the 1,400 customers that total $2 million in revenue (that’s $1,100 in revenue per partner). Good days to be a Citrix partner.”

Virtualization.info¬†notes that the leaked memo and¬†DiPetrillo’s blog will “radically change” VMware’s relationship with Citrix, which had been “great” before the XenSource acquisition. And it raises the question of whether DiPetrillo was giving just his opinion or taking part in a larger “guerrilla marketing” campaign by VMware against Citrix:

“While it’s true that this is an employee opinion appearing on a personal blog it’s worth to note that Mike’s position in the company is highly relevant, and that VMware has a very strict policy about personal blogging efforts. It’s hard to believe that this post appeared without being reviewed first (no matter what’s the official position of VMware).”

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