Pete:
I have read this piece, and others like it.
1. Not sure why folks are placing weight on the quotes of the CEO of the company. I have yet to hear a CEO of a company (esp small cap) say:"our tech is crap, we're not innovative." Every CEO will say positive things about their own company. That's their job.
2. For those interested, I saw a demo of a hypervisor running 2000 web server instances on a laptop at SOSP 2003. This was 12 years ago. Of course it was a research prototype, and commercial products are bigger. But VMWare is NOT the best in terms of scalability. Citrix, which bought Xensource, should be the competitor with the best scalability properties.