Corporations Still Spending on IT: VMware CEO
Although the macro environment remains uncertain, companies continue to invest in IT infrastructure to stay competitive, VMware’s outgoing CEO, Paul Maritz, told CNBC’s “Squawk on the Street”on Monday.
“There are two trends in the macro environment,” Maritz said.“One is clearly that there is still a lot of nervousness out there as people are looking at Europe and wondering what that will do to global demand.”
(Read More: VMware Stock Drops After Report CEO is Leaving.)
“On the other hand,” he continued, “companies realize that they can’t just stand still.”
That has meant continued investment to transform their IT capabilities which will help ensure ongoing competitiveness, Maritz said. “We still see demand in spending as companies look forward and try and transform IT operations,” he noted. “We’re continuing to benefit from that.”
Paul Maritz has held the CEO job at VMware since July 2008. During his tenure, VMware has posted growing sales as it introduced new cloud computing (learn more) products. Cloud computing is one of the fastest-growing areas in the technology sector.
Incoming CEO Pat Gelsinger, is a former Intel executive and is the president of EMC's infrastructure products division.
He told CNBC that VMware’s recent $1.3 billion acquisition of Nicira was a critical piece to broaden out the company’s influence over the corporate data center. (Read More: VMware to Buy Network Virtualization Firm.)
“Networking security and storage and availability are two of those critical pieces for us to extend our position to,” Gelsinger said. “I see our acquisition as an essential ingredient to that strategy.”
When asked about the $1 billion verdict in the Apple-Samsung trial, Maritz said it doesn’t mean a lot in the long term. “In the long run, we still see healthy competition in the device space,” he said. “It doesn’t really affect the broad cloud universe that will continue to evolve rapidly.” (Read More: How Apple Overwhelmed Samsung's Patent Case Tactics.)
Gelsinger added that the verdict reestablishes the importance of intellectual property in IT. He added, “For us, we want more devices to hook up to our infrastructure.”