While the timing of the event comes as a surprise, the fact that IBM has decided to unload its technically excellent but unprofitable semiconductor manufacturing operation does not, nor does its choice of Globalfoundries, with whom it has had a longstanding relationship.
The most notable news to come out of the VMworld conference last week was the coronation of Pat Gelsinger as the new CEO of VMware. His tenure officially started over the weekend, on September 1, to be exact.
For those who don’t know Pat’s career, he gained fame at Intel as the personification of the x86 processor family. It’s unfair to pick a single person as the father of the modern x86 architecture, but if you had to pick just one person, it’s probably Pat. He then grew to become CTO, and eventually ran the Digital Enterprise Group. This group accounted for 55% of Intel’s US$37.586B in revenue according to its 2008 annual report, the last full year of Pat’s tenure. EMC poached him from Intel in 2009, naming him president of the Information Infrastructure Products group. EMC’s performance since then has been very strong, with a 17.5% YoY revenue increase in its latest annual report. Pat’s group contributed 53.7% of that revenue. While he’s a geek at heart (his early work), he proved without a doubt that he also has the business execution chops (his later work). Both will serve him well at VMware, especially the latter.