In VMware and the Ionix Assets – A Deeper Look, we took a fairly in depth look at the four products that VMware bought from EMC, and posited that VMware was now well on its way to fulfilling its promised intentions of becoming a vendor of a management stack for virtualization. In this article we take a look at the impact of these acquisitions upon the virtualization management market and the ecosystem of solutions available in this market.
Articles Tagged with Ionix
For at least the last year, VMware has made it very clear that it views virtualization as a catalyst that will enable the delivery of a new management stack into the enterprise, and that VMware intends to be the vendor of that management stack. This is obviously in competition with the vast majority of the software vendors who are currently in the VMware ecosystem as well as in competition with existing systems management vendors.
VMware and EMC today announced that the two companies have entered into a definitive agreement for VMware to acquire certain software products and expertise from EMC’s Ionix IT management business, including solutions aimed at delivering improved management and deployment of servers and applications in a virtualized data center.
Under the terms of the agreement, VMware will acquire all technology and intellectual property of FastScale, Application Discovery Manager, Server Configuration Manager and Service Manager and will maintain engineering, marketing, sales and support operations in the United States, Europe, Israel, India and Australia. As part of the agreement, EMC will retain the Ionix brand and have full reseller rights to continue to offer customers the products acquired by VMware.
It is quite possible that we are experiencing a “back to the future” moment in how IT solutions are delivered and purchased. For a bit of historical context, let’s go back to the IT industry of 1980. There was IBM and the “BUNCH”. The BUNCH were Burroughs, Unisys, NCR, Control Data and Honeywell. And there were the upstart minicomputer vendors like DEC, Prime, Wang, HP and Data General. All of these vendors used a similar business model. All of these vendors sold “systems” that at the minimum were comprised of storage, storage connectivity (anyone remember IBM “Bus and Tag”), the computer, and the systems software. The systems software was almost always unique to the vendor – each one had their own proprietary operating system(s). These systems were so closed and so proprietary that in many cases the applications software was unique to the system as well. In those days when you bought “an accounting system” you got everything from the applications software to the spindle on the hard disk from one vendor.
In EMC/Cisco/VMware vBlock – an Economist’s Perspective, we made the following fundamental points:
- EMC, Cisco and VMware are not going to sell their hardware and software for less when their components are part of a vBlock bundle then when they are sold ala carte to VAR’s and customers.
- However, EMC and Cisco are saying that vBlocks will be less expensive to purchase than competing alternatives
- This will be true because Acadia will pre-integrate the EMC, Cisco and VMware components for less cost to the customer (due to having a leveraged, scalable and repeatable process for doing so) than the typical VMware VAR will be able to deliver.
- Therefore the “cheaper price” comes from driving down some of the services costs associated with implementing vBlocks at the expense of the VMware VAR channel.
It is sometimes very useful to boil complex computer (especially computer software) initiatives down to the essence of the economics behind the strategies and the essence of the economics behind the initiatives. Before going down this path, there are a few basic principles of economics that need to be remembered and pointed out: