VMware had announced five months ago that its Chief Executive Officer Pal Gelsinger is stepping down. He left the company to join to take the top job at chip giant Intel. After five months, the virtualization giant has promoted a long-term employee as its new CEO. He is expected to take over the new role on June 1. For now, the company has an interim CEO. CFO Zane Rowe was looking after all the day-to-day work in the absence of any full-time CEO. Talking about Raghu Raghuram, he has been working with the company for 17 years in various positions. He not only looked after VMware’s server business but was also taking care of areas like data centers.
Picking a veteran for the top job clearly indicates that VMware wanted some dedicated to lead the company. However, the announcement comes when there are several changes already underway. The company is looking to take several steps that would be important for the stability of the company. Recently, Dell announced that it would be spinning out its stake in VMware. The decision is expected to help Dell in arranging around USD 9 billion. This will end the financial partnership which started with the multi-billion EMC deal in 2016. However, the strategic relationship between them will continue and Raghu Raghuram will be in charge to take care of that.
Chairman of the VMware board of directors Michael Dell said that he is thrilled to see Raghu Raghuram as the CEO of the company. “He has played a key role in the success of VMware. I have seen him handling all the responsibilities with integrity and conviction. He is now literally in a position to architect the future of the company,” Michael Dell said in a statement. Reacting to the decision of the board, Raghu Raghuram said that he is honoured to been chosen for this role. “I am excited that I have been given the responsibility of leading the company into a new phase of growth. VMware has the enormous opportunity and the right team to give a much-needed push to the business.”