VMware, the global leader in virtualization and cloud infrastructure, today announced that it has signed a definitive agreement to acquire DynamicOps, Inc., a provider of cloud automation solutions that enable provisioning and management of IT services across heterogeneous environments — VMware-based private and public clouds, physical infrastructures, multiple hypervisors and Amazon Web Services. Terms of the acquisition were not announced. The acquisition is scheduled to close in Q3 2012 subject to customary closing conditions.

VMware to Acquire DynamicOps

“As IT organizations evolve from builders to brokers of services many seek to provide access to diverse cloud resources in a controlled, managed fashion,” said Ramin Sayar, vice president and general manager, Virtualization and Cloud Management, VMware. “DynamicOps’ multi-cloud and multi-platform capabilities help to strengthen VMware’s position as the infrastructure and management vendor of choice for cloud computing.”

VMware believes that customers will benefit most by a standardized architecture, but will build solutions that make it easy for customers to choose the model that best works for their needs, including heterogeneous environments/management. Customers that have standardized their private and public clouds on VMware vSphere® can continue to rely on VMware vCloud Director™ to enable aggregation and management of virtual and cloud resources.

For customers whose requirements for managing and provisioning resources extend beyond VMware-only environments, DynamicOps builds on the capabilities of vCloud Director by enabling customers to consume multi-cloud resources (e.g., physical environments, Hyper-V- and Xen-based hypervisors, and Amazon EC2). DynamicOps’ policy-based service governor capabilities automate and control how applications and users are provisioned across physical and heterogeneous cloud infrastructure resources.

“VMware and DynamicOps share a common vision for dramatically simplifying the management and provisioning of IT resources in the Cloud era,” said Rich Krueger, CEO, DynamicOps. “I’m excited about DynamicOps joining VMware, and expect our customers to benefit from increased investment and support in the solutions they rely on to optimize their delivery of IT-as-a-service.”

DynamicOps, Inc. originated as a spinoff of Credit Suisse’s IT unit.

Additional Resources

What Does this Mean?

VMware has always been very up front about its intent to become a Virtualization Management vendor across the entire spectrum of products and needs that comprise this space. However, to date, VMware’s offerings have always been limited to management of the vSphere platform. “VMware to Acquire DynamicOps” breaks the mold in two very important respects. The first is that DynamicOps supports multiple virtualization platforms. The second is that DynamicOps supports clouds that span virtual and physical infrastructure. If VMware follows suit and broadens the rest of its management strategy, (in for example vCenter Operations) with support for Hyper-V and physical environments, then VMware will rank with the new Dell and the new startup ecosystem as having truly credible next generation management offerings.

IBM, HP, BMC and CA Lose Again

The astounding thing here is that CA, IBM, BMC and HP now suffer two significant losses in one day. First Dell acquires Quest, creating a brand new publicly traded virtualization management vendor with a commitment to agility and market disruption, and then VMware turns around and buys DynamicOps in order to directly compete with these legacy dinosaurs (CA, IBM, BMC and HP) on the cloud management front.

What Should Enterprises Do?

The single most important thing to do right now is to put all purchases of software from IBM, HP, BMC and CA on hold. It is too early to decide to massively uninstall these legacy dinosaur solutions, but it certainly is time to stop pouring money down an infinitely deep hole. Now that credible alternatives to these legacy vendors are starting to exist in the form of multi-billion dollar publicly traded companies there is no reason to deepen your risk of obsolescence by extending your exposure to clearly outdated, brittle, difficult to maintain, and overly expensive solutions.  These moves by Dell and VMware are just the start of the rationalization of the Virtualization Management business. Other moves will follow – but all of them will create new alternatives and serve to highlight the failure of the legacy big four to adapt to virtualization and cloud computing.



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Bernd Harzog (336 Posts)

Bernd Harzog is the Analyst at The Virtualization Practice for Performance and Capacity Management and IT as a Service (Private Cloud).

Bernd is also the CEO and founder of APM Experts a company that provides strategic marketing services to vendors in the virtualization performance management, and application performance management markets.

Prior to these two companies, Bernd was the CEO of RTO Software, the VP Products at Netuitive, a General Manager at Xcellenet, and Research Director for Systems Software at Gartner Group. Bernd has an MBA in Marketing from the University of Chicago.

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6 comments for “News: VMware to Acquire DynamicOps, Inc.

  1. Bryce Campo
    July 3, 2012 at 10:54 AM

    How can VMware be “the global leader in virtualization and cloud infrastructure” when they are just now buying a company that will “enable provisioning and management of IT services across heterogeneous environments”?

    Did you ever think about checking to see if other suppliers already do that (e.g. HP’s CloudSystem Automation software for example).

  2. Juan Mann
    July 3, 2012 at 1:21 PM

    “CA, IBM, BMC and HP now suffer two significant losses in one day. First Dell acquires Quest ..a commitment to agility and market disruption, and then VMware .. buys DynamicOps in order to directly compete with these legacy dinosaurs (CA, IBM, BMC and HP) on the cloud management front”.

    What a blatant piece of Kool-Aid induced marketing propoganda. Compete? In the “cloud management front”. I think you need to take a serious look at IBM’s recent purchase of Platform Computing along with their Tivoli strengths, BMC’s Cloud Lifecycle Management Suite and its growing integration with their ITSM platform and HP’s Operations Management solutions along with its ability to provide both private, managed and public cloud services before you start calling them dinosaurs.

    Virtualization and management of VM sprawl does not a cloud management expert make.

  3. Bharzog
    July 3, 2012 at 1:46 PM

    Hi Juan,

    You are certainly welcome to your opinion and perspective. I agree that IBM’s purchase of Platform Computing gives IBM a good private cloud platform. However, my fundamental point is that the legacy systems management vendors are in trouble for two reasons:

    1) On the infrastructure and applications monitoring their offerings have not been modernized for the new dynamic data center (Tivoli gets uninstalled when servers get virtualized), and simply do not work in multi-tenant private and public cloud environments.

    2) Most importantly much of the virtualization market has chosen to do business with vendors that offer solutions that are much easier to try, easier to implement, and less expensive to implement and own than offerings from CA, IBM, BMC and HP.

    Bernd

  4. Mike
    July 3, 2012 at 2:18 PM

    If we accept you view CA, IBM, BMC and HP are “legacy dinosaur solutions”, how did they become that way? It seems that VMware is going down the same growth by acquisition path. Can’t the “dinosaurs” acquire their way to relevancy too? I think VMware will have the same integration challenges those vendor’s faced. Integration of acquisitions is extremely difficult. There are far more examples of failed or shallow attempts than real integration success stories.

  5. Bharzog
    July 4, 2012 at 10:53 AM

    Hi Mike,

    The big four became legacy dinosaurs for two reasons:

    1. Virtualization and Cloud Computing are such huge changes that you cannot glue technology from a startup to a legacy management suite in order to just make that legacy management suite relevant in virtualized and cloud environments. Frankly, virtualization and the cloud just break legacy approaches to systems management, which requires that one start over with a clean sheet of paper (as your company has done).
    2. Virtualization and Cloud customers have shown a strong preference for the “easy to try and easy to buy” business model, and a strong preference against the “take the CIO out for golf and sign an ELA” business model.

    Now you do raise a very interesting question. That question is whether or not Dell and VMware are going to behave as members of the Big 4 (make a Big 6), or whether they are going to try to be a new Big 2 and disrupt the traditional systems management market. That will be the subject of my next post on this issue.

    Thanks for commenting!

    Bernd

  6. Bharzog
    July 30, 2012 at 8:13 AM

    Hi Bryce,

    It says “infrastructure”. That means vSphere. If you do not think vSphere is the market leading virtualization and cloud infrastructure solution, then please tell me what is. As for Cloud Management, even with the flaws in vCloud Director, VMware had more clouds in production than anyone else. Buying DynamicOps addresses those flaws.

    As for HP, IBM, BMC and CA, they are trying hard to play in the virtualization and cloud management spaces, but are frankly struggling against the new players that are focused upon this market. The problem is very simple. The legacy vendors have complex solutions, that are hard to try, hard to buy, expensive to implement and expensive to own. Customers have voted with their feet and their dollars for solutions that can be implemented quickly and inexpensively.

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