Nutanix and VMware end legal battle against CEO Rajiv Ramaswami • The Register


Nutanix and VMware have ended a legal fight sparked when the hyperconverged upstart lured Rajiv Ramaswami away from Virtzilla and into his CEO seat.

Ramaswami was VMware’s cloud boss when he made the jump, but started talking to Nutanix about a new gig while he was still on the payroll and not telling Virtzilla. VMware alleged that this was a conflict of interest because of the possibility that Ramaswami’s knowledge of the company’s strategies and plans would be of obvious benefit to Nutanix.

The case landed in the California Superior Court and the Delaware State Court of Chancery.

The latter case is now over, with VMware moving away from the case.

Nutanix called the move a sign that the lawsuit was shaky.

“The VMware lawsuit was misguided and inappropriate because there was no wrongdoing on the part of Mr. Ramaswami,” read a statement from Nutanix. “VMware has agreed to dismiss the lawsuit and we are very pleased that the matter has been resolved favorably.”

VMware also said it was happy the case was behind it all, so it could focus on developing software that customers love (unlike its recently retired vSphere version).

Both companies undoubtedly paid their lawyers decent sums to make this happen. VMware can afford it – the company recently reported another quarter of strong growth. Nutanix’s numbers for the first quarter of 2022 were worse – as the company approached cash flow positivity, it posted a loss.

In conversation with The registerRamaswami said the company has developed a better understanding of the impact, for example, of the US federal government’s tendency to purchase products in the first quarter of its year. He also said that Nutanix’s “Era” Database as a Service offering is growing well and has the potential to create new businesses.

Nutanix and VMware spent years shooting each other in public, but those fights died down as the Ramaswami litigation unfolded. The register previously suggested that the two companies face formidable competitors, making their public brawls unseemly and inappropriate. They were fun to watch, however, as a rare example of an uncleaned commentary. ®


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