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VMware sues Rajiv Ramaswami, its former executive who landed as CEO of competitor Nutanix, two days after leaving VMware as a senior executive


#In early #December, #Nutanix, the US software publisher that provides enterprise cloud management products, announced the hiring of former VMware executive #Rajiv #Ramaswami as CEO of his company from its ranks. #Since last year, #Dheeraj #Pandey, co-founder of #Nutanix, has announced his intention to leave this post. #It is therefore to replace #Dheeraj #Pandey that #Rajiv #Ramaswami was called by #Nutanix. #For #Ramaswami this new position presents itself as a great promotion when we know that he only held the position of director of operations for cloud products and services within VMware.

#As an asset, the new CEO of #Nutanix has 30 years of experience in the cloud technology industry, with a stint at #Broadcom, #Cisco, #Nortel and IBM without counting his last role at VMware. #For #Nutanix, it is a sure value of the multicloud which has just joined its ranks and will bring added value to the company. #But for VMware, one of the main key competitors of #Nutanix which offers several products related to the virtualization of x86 architectures, this departure from #Ramaswami could contribute to weaken the company, in terms of available resource people.

VMware complaint against its former manager #Rajiv #Ramaswami

#While the case was believed to be closed, VMware announced last #Monday that it had initiated a lawsuit in the #Superior #Court of the #State of #California, in #Santa #Clara #County, against #Rajiv #Ramaswami, former COO of VMware, for material and ongoing violations. legal and contractual duties and obligations towards VMware. #To better inform the public, VMware explains that #Rajiv #Ramaswami did not honor his fiduciary and contractual obligations towards VMware. #For at least two months before stepping down from the company, while working with senior management to shape VMware’s key strategic vision and direction, #Mr. #Ramaswami also met secretly with at least the CEO, CFO and, apparently, the whole. of the #Board of #Directors of #Nutanix, inc. in order to become the CEO of #Nutanix. #He joined #Nutanix as CEO just two days after leaving VMware.

#For VMware, #Mr. #Ramaswami displayed a lack of judgment and experienced a clear and prolonged period of conflict of interest. #He should have disclosed this VMware conflict of interest so that the company could take steps to protect itself. #But he did not inform VMware, and thus deprived the company of the possibility of doing so by concealing its #Nutanix-related activities.

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The company adds that it is not by nature a contentious company. #So she tried to resolve this issue without litigation. #But #Mr. #Ramaswami and #Nutanix have refused to engage with VMware satisfactorily, says VMware. #Through this lawsuit, says #Brooks #Beard, vice president of VMware and associate general counsel, we hope that we can find a way to protect the rights and interests of VMware, steps we could have taken, could have taken if we had warned us. this conflict. #As measures, VMware could seek to recover its compensation from #Ramaswami during its period of negotiation with #Nutanix or else could engage in a meaningful way with the executive and his new employer to ensure that they will not use VMware’s confidential information to make competitive decisions. #Beard.

#Nutanix response to VMware complaint

#Nutanix on the other hand says that the VMware lawsuit aims to make an interview for a new illegal job. #We view VMware’s misguided action as a response to the loss of a deeply valued member and respect for its management team. The company adds this: #Mr. #Ramaswami and #Nutanix went above and beyond to be proactive and cooperative with VMware throughout the transition. #Nutanix and #Mr. #Ramaswami have assured VMware that #Mr. #Ramaswami agrees with his obligation not to take or abuse confidential information, and VMware does not claim otherwise.

#However, VMware asked #Mr. #Ramaswami to agree to limit the ordinary performance of his duties in a way that would amount to an illegal non-compete agreement, and he asked #Nutanix to agree not to hire VMware candidates in a way that #Nutanix believes would be contrary to the law. federal antitrust laws. #Mr. #Ramaswami is proud of his tenure at VMware and has many members of the VMware team as friends. #It is disappointing that VMware management is suing him simply because he chose to seize the opportunity to become CEO of a public company. #We believe VMware’s action is nothing more than an unfounded attempt to injure a competitor and we intend to vigorously defend this matter in court.

#While waiting for the end of the story

#Pending the end of this story, for #Constellation #Research analyst #Holger #Mueller, VMware’s lawsuit against #Ramaswami raises the following questions: #Does a high-level interview with a competitor amount to a breach of confidentiality in and of itself, or has important information been violated to achieve the goal? #Traditionally, the right to a (confidential) interview is protected by the courts, replies #Mueller to dispel the doubt. #Based on this, #Mueller does not see how VMware’s complaint could be successful. #He also points out that it is a long time since the last lawsuit took place in #Silicon #Valley involving a tech executive who jumped into another company. #Also, with voluntary employment which stipulates that employees can change jobs without notice if they wish, it will be difficult for VMware to demonstrate that there have been breaches of the terms of contract by #Ramaswami, says #Mueller.

#Source : VMware, #Nutanix

#And you ?

#How do you characterize VMware’s complaint? #Justified complaint or desperate attempt to embrace #Ramaswami and #Nutanix?

#Do you think #Ramaswami could refrain from making strategic decisions in favor of #Nutanix if he had to rely on VMware confidential information?

#See as well

IBM, #Red #Hat, VMWare launch an initiative to remove terms like blacklist, whitelist, master and slave from the IT universe to replace them with other more inclusive and explicit judgments
IBM and VMware #Strengthen #Partnership to #Accelerate #Hybrid #Cloud #Adoption and #Digital #Transformation for #Businesses
86% of IT #Professionals #See #Hybrid #Cloud as the #Right #Model, #According to #Nutanix #Report
#Cloud: #Three-quarters of companies decide to backtrack by moving their applications from public cloud to on-premises infrastructure, #Nutanix report finds



[ source link ]
https://www.developpez.com/actu/311518/VMware-poursuit-en-justice-Rajiv-Ramaswami-son-ancien-dirigeant-qui-a-atterri-en-tant-que-PDG-chez-son-concurrent-Nutanix-deux-jours-apres-avoir-quitte-VMware-en-tant-que-haut-dirigeant/

#VMware #sues ##Rajiv ##Ramaswami #executive #landed #CEO #competitor ##Nutanix #days #leaving #VMware #senior #executive

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