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Forbes Interviews VMware CEO Paul Maritz After Financial Analyst Call

Forbes interviewed VMware's new CEO, Paul Maritz, after the financial analyst call on Tuesday.  After the call, the company's stock reached an all time low, almost back to the IPO stage.  In after hour trading, it dropped to $32.86.  In this interview, Forbes asked what Maritz thinks about the stock price, what he thinks about the analysts saying VMware doesn't have a solid or innovative growth plan for the future, and question whether he thinks VMware should be part of EMC or not, where Diane Greene wanted to break away from EMC.  In addition, he was also asked and answered the following questions: 

Microsoft's Hyper V hypervisor, software that separates hardware from operating systems and applications inside computer servers, is virtually free. How do you plan to compete with that?

We don't see the need to lower our price points. But that said, we created lower price SKUs for our customers.

Hyper V is really just one layer and it corresponds to our ESXi. Our customers no longer pay for that. What they pay us for is the software that sits on top of that. Microsoft is not there yet. They don't have the virtual infrastructure suite that we have.

What strategies from Microsoft will you use at VMware?

When you reach the size that VMware's reached, in order to capitalize on opportunities, you have to be able to operate on multiple fronts. Find elements [that have made VMware successful], reinforce them and fill in with other tactics and tools. Create the ability to have empowered teams that can execute on multiple fronts. They just need to take their game up to the next level. I spent five years at Intel (nasdaq: INTC - news - people ) before Microsoft. I'm well schooled in Andy Grove's doctrine that only the paranoid survive.

Can you talk about what you're doing with Google in terms of cloud computing?

We're not doing anything with Google (nasdaq: GOOG - news - people ) per se. The data center of future is how do you get hardware to become an elastic base you get your computing off of? Cloud computing will be a revenue driver, both direct and indirect. It will further strengthen our value proposition inside the corporation.

Read the entire interview, here.

Published Wednesday, July 23, 2008 6:20 AM by David Marshall
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