Sources: CEO Gelsinger To Step Down After Dell-EMC Deal Closes, VMware Issues Denial


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VMware CEO Pat Gelsinger is planning to leave the company once Dell closes its acquisition of EMC, multiple sources with knowledge of the executive's plans told CRN on Tuesday.

Tony Bates, the former Microsoft executive who joined VMware's board in February, and is currently president of videocamera vendor GoPro, is one candidate being considered to replace Gelsinger, said one source familiar with the CEO search.

Several senior software executives from Dell and EMC are also in the mix for the VMware CEO job, the source added.

[Related: Michael Dell On Dell-EMC's Storage Overlap, Future Acquisitions And The Blockbuster Deal's Channel Impact]

Spokesmen from VMware and EMC denied that Gelsinger is planning to leave the company. "That is categorically untrue," said the EMC spokesman. A Dell spokesman declined to comment.

One high-level EMC source said Gelsinger was directly responsible for the lackluster market performance of the vCloud Air hybrid cloud service, which has struggled to attract customers since launching three years ago. Bill Fathers, the executive in charge of running vCloud Air, left VMware last month.

"There have been a number of missteps at VMware, including vCloud Air," said the EMC source, who didn't want to be named.

The EMC source also suggested that Gelsinger hasn't played a cooperative role in EMC's Federation of subsidiary companies, which includes VMware, RSA, Pivotal, VCE and Virtustream.

"Our success is predicated on people working together -- not apart from one another. Whether it is Virtustream or Pivotal, we need to work together. Pat is not an easy guy to work with. Pat likes to do what Pat likes," said the EMC source.

The feeling inside Dell Technologies and EMC is that Gelsinger is not collaborating with the rest of the technology team, said the EMC source. "The goal of Dell Technologies is to work closer as a team," said the source. "I don't know if Pat is completely on board with that model."

Some of CRN's sources said VMware plans to announce Gelsinger's departure at its annual VMworld conference, which is being held from Aug. 28 to Sept. 1 in Las Vegas.


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