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VMware Sues Former Executive Who Left for CEO Job at Nutanix (bloomberg.com) 35

VMware said that one of its former top executives, Rajiv Ramaswami, violated his contractual obligations while being courted to be the chief executive officer of rival Nutanix, adding another dimension to a bitter rivalry between the two software makers. From a report: VMware's lawsuit against Ramaswami, who was named CEO on Dec. 9, was filed Monday in California state court in San Jose. The company accused its former chief operating officer of products and cloud services of meeting with Nutanix executives and board members while helping VMware craft a strategy and acquisitions road map. VMware, majority owned by Dell Technologies, said the executive's actions and knowledge of its plans has caused "irreparable injury." Nutanix, which wasn't named as a defendant in the suit, called the case "misguided" and said it's an attempt by VMware to hurt a competitor.

"We cannot unring the bell of that conflict that existed during that two-month period that he was engaged with Nutanix while involved in planning for us," Brooks Beard, a VMware vice president and deputy general counsel, said in an interview. "Through this lawsuit, we're hoping that we can find a way to protect VMware's rights and interests, steps that we would have taken, could have taken, had he alerted us of this conflict." The Palo, Alto-based software maker may seek to recoup its compensation to Ramaswami during the time period and wants to "meaningfully engage" with the executive and his new employer to ensure they won't use confidential VMware information to make competitive decisions, Beard added.

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VMware Sues Former Executive Who Left for CEO Job at Nutanix

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  • by Anonymous Coward on Wednesday December 30, 2020 @06:13AM (#60878354)

    In California non-compete agreements are generally not enforceable, although, as with all else under the laws, the devil is in the details. VMware will typically be required to show specific examples of actual harm rather than just general claims of possible future harm.

    At this level of executive recruitment between such rivals I would expect both Nutanix and Rajiv himself were not exactly surprised at VMware's lawsuit. Let the billable hours begin (only the lawyers will be winners here).

    • Let the billable hours begin (only the lawyers will be winners here).

      Last time someone tried to pull some unenforceable, illegal shit on me, I refused to let their lawyer have contact information or the identity of my lawyer. Communication had to go through me, and I was able to rack up billable hours on their side, without incurring them on my side. Eventually, their client got sick of paying for their lawyer and caved--presumably because their lawyers had informed them how badly they'd lose in court.

      Who said I didn't like lawyers?

  • 51st State? (Score:5, Funny)

    by sabbede ( 2678435 ) on Wednesday December 30, 2020 @08:19AM (#60878518)
    "The Palo, Alto-based...", means the city of Palo in the State of Alto. As in, "Atlanta, Georgia-based". Here all this time I thought there was a city called Palo Alto, but it turns out there was a State I never knew about.
    • by algaeman ( 600564 ) on Wednesday December 30, 2020 @10:13AM (#60878826)
      All this time you thought journalists could be expected to have some minimal command of the English language. I'm sorry you had to find your error in this way.
      • I forget sometimes that the job of a modern editor no longer has anything to do with editing. I'm not sure exactly what it is though. Seems to be narrative maintenance or clickbait maximization.
    • by Anonymous Coward

      good, stuff

    • It's in Alto California as opposed to Baja California. Still should have been Palo Alto, Alto California to have made sense. And of course it's been 200 years since anyone called it Alto California.

      • So if California broke up into multiple States, we could have Baja California (TJ), Alto Baja California (San Diego), Alto California (LA), and Alto Alto California (SF)?

        Well, that's just too delightfully confusing not to run with!

        And thanks for tricking me into learning something.

  • by Gravis Zero ( 934156 ) on Wednesday December 30, 2020 @10:17AM (#60878838)

    If you want something accurate then it should be:

    Corporate Entity, who will stab anyone in the back, upset about being stabbed in the back; stabs former CEO in the back

  • Once innovative technology company sells a highly desirable product but then runs into growth obstacles largely defined by their success in market saturation.

    Propelling financial growth requires raising prices as well as pushing an expensive and ever-growing stock of complex add-on products. Core product enhancements get pushed into these peripheral add-on products vs. the basic product. The high cost results in limited uptake, partly due to price and partly due to the diminishing utility of the add-ons.

    E

    • Once innovative technology company sells a highly desirable product but then runs into growth obstacles largely defined by their success in market saturation.

      Worth mentioning they were also pushed aside by more innovative solutions, like virtualization. (Virtualization doesn't replace VMWare in every case, but does in a lot of cases).

  • Sure, sue the bastards, but only to prove a point, and protect future interests if something comes up. But if they spend any significant resources or brainpower on this, they are doing the wrong thing. Do the bare minimum.

    Just get back to your knitting, and donâ(TM)t take your eye off the ball. The guy knows some secrets? Fine, take that into consideration, but move forward regardless.

    • by Junta ( 36770 )

      When allowed to play out, it doesn't generally pan out well for the former employer (unless the employee is shown to have inappropriately shared specific data). However, the mere threat of going through this mess is enough to intimidate employees and other potential employers to avoid jumping or poaching and help keep their workforce captive to avoid having to pay a competitive rate.

  • So, vmware failed to compensate that person properly. Either by salary, or good project opportunities. And a better deal has come, and now they also want to stunt his growth there.

    The first goal of every employee should be self-growth. You are your best investment (sounded a bit like "personal development advice", but it is true). It does not matter if you are doing minimum wage, or a high level executive. Coasting will cost you, and if a better deal comes up, just jump ship.

    This is known by the companies t

  • This is a good idea of vmware! Sue your own ex-employees. It's a good means to make sure you will have trouble getting new employees (at least, those that matter).

    • That's a fantastic way to open a company up to regulatory action for any little law the company might have broken.

      If you attack former employees, based on the premise that your policy or contracts can trump the law, then you deserve to get smacked down, hard.

      • by Junta ( 36770 )

        Sadly, these stories happen regularly and occasionally make the news but by and large are ignored from the beginning or alternatively quickly forgotten. Except by HR teams that know to red flag an applicant from a company like VMware (and Amazon, HP, IBM, and probably many others that have had very public lawsuits against ex-employees and their new employers). Employees are by and large not researching whether their prospective employer will trap them and try to enforce a draconian non-compete, but even as

  • If VmWare is so scared of Nutanix nowadays that they're suing, maybe it's time to re-evaluate replacing the way-too-expensive-licensing-mess that VmWare has become with Nutanix at my company.
    The Nutanix Community Edition is free - let's see what it can do.

    • We've been running Nutanix for about 5 years now and have been really happy with it. As you said: the VMware licensing was getting out of control.
  • I never thought of Nutanix as a VMware's competitor. Aside from their propriatery developments on linux/virtualization, I'd rather think their software compliment to VMware, not as competition.

C'est magnifique, mais ce n'est pas l'Informatique. -- Bosquet [on seeing the IBM 4341]

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