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VMware’s Lawsuit Against Nutanix CEO: 5 Big Things To Know

‘For at least two months before resigning from the company, at the same time he was working with senior leadership to shape VMware’s key strategic vision and direction, Mr. Ramaswami also was secretly meeting with at least the CEO, CFO, and apparently the entire Board of Directors of Nutanix,’ says VMware in its lawsuit against Nutanix CEO Rajiv Ramaswami.

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Opinion: The Crux Of The Lawsuit

It appears the crux of the lawsuit is not only about what VMware dubs as an “extended period of conflict of interest” and Ramaswami “secretly meeting” with Nutanix, but that Ramaswami intimately understands VMware’s short- and long-term product strategy and vision that VMware has spent billions of dollars investing in.

“VMware spends billions of dollars on its road map and R&D to bring market innovations to our customers and is committed to protecting our brand, the technological innovations behind our brand, and the value we bring to our customers,” said VMware in its litigation statement against Ramaswami.

This knowledge, according to solution providers, gives Nutanix a big advantage in terms of market competition.

Ramaswami was responsible for all of VMware’s business units developing products, cloud services and cloud operations for years. Prior to his COO position, he did a short stint as general manager and executive vice president of VMware’s networking and security business. During his tenure, Ramaswami led several important acquisitions and played a key role in transitioning VMware toward a subscription and Software-as-a-Service (SaaS) model.

VMware and Nutanix go head to head in several markets including hyperconverged infrastructure software, hybrid cloud management and even in hypervisors. VMware and Nutanix are both focused on driving subscription and SaaS sales while they are similarly forming partnerships with many of the same public cloud leaders.

One thing for sure is that this lawsuit filed by VMware sets up an interesting legal battle between the two hybrid cloud software titans in 2021.


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