VMware Names Raghu Raghuram CEO Ahead of Dell Spin-Off

VMware Appoints Raghu Raghuram as New CEO

Following a five-month search initiated after Pal Gelsinger’s departure to Intel, VMware has officially named a permanent successor. Raghu Raghuram, a long-serving employee of the organization, will assume the position of CEO, effective June 1st.

Currently, Zane Rowe, the company’s CFO, is fulfilling the role of interim CEO. He will continue in this capacity until Raghuram formally takes over.

A Veteran Leader

Raghuram brings with him 17 years of experience within VMware, having held numerous key positions. Most recently, he served as the Chief Operating Officer for Products and Cloud Services.

His previous roles encompassed oversight of critical areas such as data centers and VMware’s server-related business operations. The appointment of a seasoned insider underscores VMware’s commitment to stability and its existing corporate culture.

Strategic Timing Amidst Change

This leadership transition occurs during a period of significant change for VMware. Approximately one month ago, Dell Technologies confirmed its plans to spin off its stake in VMware.

This separation is projected to yield at least $9 billion for Dell, concluding a financial alliance that began with the substantial acquisition of EMC in 2016. Despite the spin-off, the strategic partnership between Dell and VMware will persist, with Raghuram now leading the effort to nurture and expand this relationship.

The appointment can be viewed as a decision largely supported by Dell Technologies.

Dell’s Endorsement

“I am thrilled to have Raghu step into the role of CEO at VMware,” stated Michael Dell, Chairman of the VMware board of directors. “Throughout his career, he has led with integrity and conviction, playing an instrumental role in the success of VMware.”

Dell further emphasized Raghuram’s capacity to “architect VMware’s future, helping customers and partners accelerate their digital businesses in this multicloud world.”

Extensive Experience and Strategic Vision

Raghuram’s contributions extend beyond divisional leadership. He has been pivotal in developing and executing strategies for VMware’s core virtualization business.

He has also been actively involved in mergers and acquisitions, and in fostering key partnerships, particularly with Dell Technologies, as highlighted by VMware.

Raghuram’s Vision for the Future

“VMware is uniquely poised to lead the multicloud computing era with an end-to-end software platform spanning clouds, the data center and the edge, helping to accelerate our customers’ digital transformations,” Raghuram commented.

He expressed his honor and excitement at being selected to guide the company through its next phase of growth, emphasizing the company’s opportunities, solutions, and team.

Q1 Financial Outlook

VMware also provided an update regarding its Q1 financial performance, scheduled for release on May 27th. Revenue is anticipated to reach $2.994 billion, representing a 9.5% increase year-over-year.

Subscription, SaaS, and license revenue are projected at $1.387 billion, a 12.5% increase. The company expects a GAAP net income per diluted share of $1.01 and a non-GAAP net income per diluted share of $1.76.