US-China trade war worse for tech business than COVID-19, says VMware's Asia boss

Buyers aren't super-keen to jump through geopolitical hoops

VMworld The US-China trade war has made more trouble for VMware's business in Asia than the COVID-19 pandemic, according to Duncan Hewett, Virtzilla's senior vice president and general manager for Asia Pacific & Japan (APJ).

Speaking to The Register as part of this year's virtual VMworld, Hewett said the trade war has caused "some challenges," and that "both sides" are contributing to the strife.

"The Chinese government is putting increased requirements on customers on how they choose tech," he said. "And the US government is asking for increased certifications that our products are not going to military end users. Both sides slow down the ability to adopt technology in a fast-growing market."

Hewett said VMware has not been asked to do anything beyond ensuring it adheres to published rules.

"We are just following the requirements on both sides," he said.

Alibaba Wuying Cloud PC

Alibaba wants to get you off the PC upgrade treadmill and into its cloud


VMWare CEO Pat Gelsinger is a member of America's National Security Telecommunications Advisory Committee, a position he was nominated to by President Trump. Perhaps he'll share Hewett's experiences at its next meeting on 6 October, although as that meeting's agenda [PDF] runs for all of 25 minutes and mentions only one item – deliberating and voting on the committee's "letter to the President on communications resiliency" – it may be tricky to sneak in VMware's experience.

But we digress. While the trade war has made life hard for VMware, it hasn't dented its overall performance. On its last earnings call the company said that the APJ and EMEA regions had displayed "a bit more strength" than the Americas and racked up results such as 30 per cent increase in bookings for the company's NSX network virtualization product.

Hewett also characterised VMware's cloud partnership with Alibaba as a "small installation to give customers an option to run in China". But he said VMware intends to expand the relationship as Alibaba Cloud expands its footprint to make it an option to rank with other VMware partners.

"The key is to provide customers with choice," he said. ®

Similar topics

Other stories you might like

  • UK Home Secretary delays Autonomy founder extradition decision to mid-December

    Could be a Christmas surprise in store from Priti Patel

    Autonomy Trial Autonomy founder Mike Lynch's pending extradition to the US has been kicked into the long grass again by the UK Home Office.

    Lynch is wanted in the US to stand trial on 17 charges of fraud and false accounting. He is alleged to have defrauded Hewlett Packard investors over the sale of British software firm Autonomy in 2011.

    Continue reading
  • Want to buy your own piece of the Pi? No 'urgency' says Upton of the listing rumours

    A British success story... what happens next?

    Industry talk is continuing to circulate regarding a possible public listing of the UK makers of the diminutive Raspberry Pi computer.

    Over the weekend, The Telegraph reported that a spring listing could be in the offing, with a valuation of more than £370m.

    Pi boss, Eben Upton, described the newspaper's article as "interesting" in an email to The Register today, before repeating that "we're always looking at ways to fund the future growth of the business, but the $45m we raised in September has taken some of the urgency out of that."

    Continue reading
  • All change at JetBrains: Remote development now, new IDE previewed

    Security, collaboration, flexible working: Fleet does it all apparently

    JetBrains has introduced remote development for its range of IDEs as well as previewing a new IDE called Fleet, which will form the basis for fresh tools covering all major programming languages.

    JetBrains has a core IDE used for the IntelliJ IDEA Java tool as well other IDEs such as Android Studio, the official programming environment for Google Android, PyCharm for Python, Rider for C#, and so on. The IDEs run on the Java virtual machine (JVM) and are coded using Java and Kotlin, the latter being primarily a JVM language but with options for compiling to JavaScript or native code.

    Fleet is "both an IDE and a lightweight code editor," said the company in its product announcement, suggesting perhaps that it is feeling some pressure from the success of Microsoft's Visual Studio Code, which is an extensible code editor. Initial language support is for Java, Kotlin, Go, Python, Rust, and JavaScript, though other languages such as C# will follow. Again like VS Code, Fleet can run on a local machine or on a remote server. The new IDE uses technology developed for IntelliJ such as its code-processing engine for features such as code completion and refactoring.

    Continue reading

Biting the hand that feeds IT © 1998–2021