The handwriting is on the wall. Managing the SDDC and the cloud will upend the management software industry. BMC has been taken private because it has to go through changes to adapt to the new world that cannot be done as a public company. IBM’s revenues have declined for five straight quarters. CA has resorted to lawsuits against vendors (New Relic and AppDynamics) that have out innovated CA, and who are walking away with the new APM market.
VMware will be the first vendor to deliver a SDDC. VMware’s SDDC Management Stack will be the first cohesive and complete management stack for that SDDC. The combined benefits of the SDDC along with management purpose built for the SDDC will allow VMware to deliver substantial value to its customers once these products all ship.
VMware with Log Insights and Splunk with the Splunk Analytics for Hadoop have positioned themselves as leaders for the management platform that will be the foundation of the stack of products that will be used to manage the software defined data center and the cloud. This will kick off a death spiral in the businesses of the legacy management software businesses, and ultimately create a new ecosystem of publicly traded management software vendors.
The Orchestration and Automation layer of the Software Defined Data Center is where the benefits of the SDDC is translated are translated into working applications for end users and business constituents. Every Cloud Management Platform relies upon either a script or one of these automation frameworks to provision and configure the actual end user services and applications. These solutions represent an opportunity to replace first generation automation management tools and scripts with modern declarative and model based approaches that are much more manageable and scalable.
The Cloud Management layer of the Software Defined Data Center is where the flexibility of the SDDC is translated into tangible benefits for the business constituents of the virtualized data center, the private clouds, the hybrid clouds and the public clouds. Without a robust Cloud Management layer, the IT Operations flexibility of the SDDC cannot translate into the relevant level of Business Agility for the business.
If BMC is taken private, the same fate will likely befall other legacy enterprise management software vendors like CA, and the management software divisions of IBM and HP. This will start the process of the replacement of these products by new ones built from the ground up for virtualization and cloud computing, and mark the start of the disruption of the entire management software business.
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.