Channel Marker

Mar 11 2008   10:04AM GMT

VMware: The Patriots of virtualization?



Posted by: Bcournoyer
Tags:
Channel partner programs
Server virtualization
Virtualization

Is VMware in trouble? Consider:

Last week, the server virtualization market share leader’s stock price closed at $51.45. The last time the stock was that low: Aug. 14, 2007, the day of VMware’s IPO.

Patriots 18-1A Yankee Group analyst recently compared VMware to the New England Patriots, who got off to a perfect start but couldn’t win the ultimate prize. Those comments appeared in a Network World story analyzing the threats to VMware’s dominance. Judging by the length of that article (2,500 words plus), there are a whole lotta threats.

And, as I reported today, there’s turmoil in VMware’s partner program. Complaints about channel conflict, poor communication and shrinking margins are not what VMware needs right now. Facing its toughest challenge yet, Microsoft’s Hyper-V, VMware will have to rely on partners to recruit new customers and keep existing ones happy. That won’t happen if the partners themselves aren’t happy.

VMware just announced its first true partner conference, Partner Xchange 2008, which will combine the pre-VMworld Partner Day and the annual TSX partner training into one three-day event. It will be interesting to see what VMware does between now and then to address partners’ problems, or the company could have some explaining to do come May in San Diego.

3  Comments on this Post

 
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  • Bcournoyer
    so does this make Parallels the NY Giants of virtualization?
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  • Colin Steele
    There are a lot of vendors vying to become the Giants, Derek. Guess we'll just have to wait and see. And Beth, believe me, it pains me just as much to keep bringing up these Patriots references. Such are the sacrifices we make for the job!
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  • Bcournoyer
    this is a great comparison! ha! after the problems i had with vmware and my hatred for the patriots, i agree completely. Go Colts!
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