Tomahawk, WI 08/27/2014 (Basicsmedia) – VMware, Inc. (NYSE:VMW) CEO, Patrick Gelsinger, appearing in an interview on CNBC rubbished claims that the company had slashed its long-term outlook despite increasing total market address estimate at the back of new products being launched this year.
Analysts were in agreement to the company’s 2015 guidance but reacted negatively to VMware, Inc. (NYSE:VMW) not giving guidance for 2016 and 2017, a move that saw the company’s stock plummet by 2.96% in the market.
“We heard from a number of analysts that we had given multi-year guidance, and that wasn’t consistent with how other companies had been providing guidance before so, following many of the analyst’s feedback. We said we are going to follow best practices and not give that 2-3 year our kind of perspective,” said Mr. Gelsinger.
The Annual VMware developer and customer show is already under way in California where the company has unveiled a number of products that are expected to better the management for the Cloud. VMware, Inc. (NYSE:VMW) is distributing a new version of OpenStack that is to be used to manage data-centers raising concerns that companies may opt to go for cheaper alternatives that have almost the same capability in terms of data-centers management.
The CEO rubbished claims that the company’s products will have a difficult time in the market in terms of competition, reiterating that they only upgraded the product to meet customer needs and wants.
“What we had from customers was; they wanted more choice and OpenStack the opportunity to use some new capabilities but, have the best of breed of VMware technologies,” said Mr. Gelsinger.
Gelsinger also confirmed that VMware, Inc. (NYSE:VMW) has entered into strategic partnerships with the likes of Google Inc. (NASDAQ:GOOGL) and Docker. The partnership are aimed’ at making it easy for enterprises to run and manage their container based apps across all forms of Clouds hybrids.
The new products and strategic alliances according to the CEO are expected to diversify the company’s product offerings with the potential of driving topline growth amidst increased competition in the space