Earlier this month, when Nutanix announced that it was hiring Former VMware COO Rajeev Ramaswamy as CEO, it seemed like a good match. What’s more, it pulled a major player from its market rival. Well it seems VMware Took exception to losing the executive, and filed a lawsuit Yesterday against him for breach of contract.
The company is claiming that Ramaswamy was aware of his former company’s flagship plans and should have told him that he was interviewing for a job at a rival organization.
“Rajeev Ramaswamy Failed to honor its subsidiary and contractual obligations to VMware. For at least two months before resigning from the company, at the same time he was working with senior leadership to shape VMware’s critical strategic vision and direction, with Mr. Ramaswamy also secretly at least CEO. , CFO, and apparently meeting with the entire board. Of directors Nutanix, Inc., to become the Chief Executive Officer of Nutan. Two days after leaving VMware, he joined Nutan as its CEO.
As you can imagine, Nutanix did not agree, saying in a statement of its own that, “VMware’s lawsuit interviewing for a new job is wrong.” We see VMware’s misguided action as a response to losing a deeply valued and respected member of its leadership team. Mr. Ramaswamy and Nutanix have been active and collaborative with VMware during the transition.
At the time of hiring, Constellation Research analyst Holger Mueller noted that the two companies were the primary competitors and hiring Ramavami was a major win for Newtonics. “So appointing Ramaswamy brings an expert Newtonics helm to the multicloud, as well as weakening a key competitor from a talent perspective,” He told me earlier this month.
Mueller does not see much potential for the suit to succeed. “It’s been a while since the last trial in Silicon Valley [involving] A Tech Execution Jumping Ship. Being a ‘state at will’, these suits are usually unsuccessful, “he told me this morning.
“The interesting part of the VMware v. Nutanix lawsuit,” he said, is a high-ranking executive interview with a competitor that in itself amounts to a break of privacy, or has to dissolve physical information to get to the point. Traditional The right to interview (confidentially) has been protected by the courts, ”he said.
It is unclear what the final game will be in this type of legal action, but it complicates matters for Newtonics as it transitions to a new chief executive. Ramaswamy took over from co-founder Dheeraj Pandey, who announced plans to step down last summer.
The lawsuit was filed Monday in the Superior Court of the State of California of Santa Clara County.