VMware CEO Pat Gelsinger to the channel: build for the cloud
@VMware CEO @Pat Gelsinger continues to make clear that he’s a lot more interested in channel partners building capabilities for the cloud than for the software firm’s on-premises solutions. Speaking to journalists in Toronto on Wednesday, during VMware’s internal sales kick-off meeting for its Americas employees, Gelsinger emphasized the message he’s been taking to the channel since last year. VMware, while it continues to see the majority of its business in its legacy on-premises solutions, is chasing the growth in the cloud by developing new solutions there. He wants to see partners doing the same, even if it is a tougher path to trod. “I don’t need another vSphere partner, it’s a pretty mature market,” the CEO says of the server virtualization solution. “Most partners are struggling with how they deliver cloud services… some have figured it out and a lot haven’t yet.” The disruption in the partner market isn’t a VMware statement, Gelsinger says, just a reality of the wider eco-system. While on-premises workloads continue to grow, cloud workloads are growing at about triple the pace. So channel partners need to surf that higher wave to big revenue. (In Cisco’s Global Cloud Index for 2018, it estimates 73 per cent of cloud workloads will be in public cloud data centres, up from 58 per cent in 2016). Gelsinger encourages partners to develop their own cloud capabilities. He also knowledges there is also a whole class of value-added resellers that were “born in the cloud.” For its part, VMware has been developing more resources and education for channel partners that are interested in developing cloud capabilities. Part of that education includes just making clear what incentives there are to sell a $10,000 per month subscription over a $1 million transaction deal. VMware’s converted its own salespeople to understanding the lifetime value of the subscription customer is higher, and now it’s helping its partners as well.