My thoughts on the VMware vCloud Hybrid Service: There was an announcement made last week about the new VMware vCloud Hybrid Service which will bring VMware Public Cloud Service to the masses later this year. There are a couple of posts from our own Virtualization Practice analysts which can be found here and here. Since there has been plenty of conversation about just what the vCloud Hybrid Service is, I am going to use this post to share my thoughts on the service itself.
On Tuesday VMware announced their answer to the public cloud: the vCloud Hybrid Service (vCHS). One of the biggest hurdles for the roughly 500,000 VMware customers has been that their on-premise, private infrastructure isn’t directly interoperable with any sizable public clouds, like Amazon AWS or RackSpace. If you want to move towards a public or hybrid cloud model you need to add additional software, like Enstratius’ offerings or VMware’s own vCloud Automation Center.
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vSphere with Operations Management lets VMware use valuable and differentiated management software like vCenter Operations to make the price of vSphere free or nearly so. One can only wonder if other such bundles are forthcoming, for example vSphere with vCloud Automation Center (vSCAC). VMware has significant product differentiation in management software over Microsoft, and it only makes sense to use this differentiation to combat the perception that vSphere is expensive.
VMware has announced the End of Life for vFabric APM. This now opens up the entire data center virtualization market and the entire future Software Defined Data Center market to third party solutions designed for these new environments. This will be one more nail in the coffin of the legacy APM vendors who have not modernized their solutions, and will create a huge opportunity for the new vendors who have.
A VMware win against Microsoft simply requires VMware to turn the pricing tables on Microsoft, and to leverage its highly differentiating functionality in its Software Defined Data Center strategy. VMware could re-establish technical dominance in the data center virtualization space as early as the end of this year by leveraging its software defined networking, software defined storage, and management software assets.
EMC and VMware’s pivotal moment has officially spun off and the Pivotal Initiative, a big data and cloud platform company is slated to go public according to EMC CEO Joe Tucci while speaking with investors at an event in New York. EMC’s chief strategist and ex-CEO of VMware, Paul Maritz, who is leading the Pivotal Initiative, believes and expects it to be a billion dollar business within the next five years if they can get the $400 million initial investment needed to reach that goal. EMC will own 69 percent and VMware will own 31 percent with 1,250 employees and $300 million in revenue.
VMware has added some significant meat to the bones of its Software Defined Data Center Strategy with the announcement of the VMware NSX Network Virtualization Platform. NSX represents the combination of the previous VMware network virtualization technology (VXLAN) with the technology that came from the acquisition of Nicira.