I hear that vendors are bundling cloud services with their other software licensing deals, and I have some thoughts about why. Azure credits are being bundled into Microsoft software license deals. Oracle customers can buy cloud credits as a way of avoiding problems that stem from database software licensing true-ups. There are a couple of ways of looking at such practices. One is that these credits are a great way of getting customers hooked on your cloud. Oops, I meant to say a great way of helping customers learn the value of your cloud. The less positive perspective is that the largely unused credits inflate the cloud services’ revenue without customers actually using the cloud. Naturally, the reality is more complex. I suspect that these are the primary reasons for bundling cloud services into license deals.
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In part one of Cost to Build a New Virtualized Data Center, we discussed the basic software costs for a virtualized data center based on VMware vSphere 6.0, Citrix XenServer 6.5, Microsoft Hyper-V 2012 R2 and 2016, and Red Hat. If you missed that, please click here to review before continuing.
This post will take that original premise and expand it to include storage with a view to moving the entire environment toward a software-defined data center.
Over the last couple of weeks, I have been thinking about costs relating to a building a new virtualization-based data center. “What?” I hear you say. “Everywhere is virtualized—there is no such thing as a greenfield site anymore!” I would have said that myself, but in the last month I have come across three, one of which is a company worth over a billion pounds.
There are a number of companies that are in a race to own the enterprise landscape when it comes to infrastructure automation and development pipelines (aka continuous integration and continuous deployment). What is unfolding here is very similar to what we have witnessed in the cloud market.
In my last article, my topic of conversation was the state of the cloud as it stands in the start of the year 2016. Following that discussion, I want to move a little further down the stack and discuss the state of affairs of virtualization, based on financial results and insight from conference calls.
It’s the state of the clouds! As we float further along into 2016, the overall state of affairs for cloud services remains very strong, with over fifty percent year-to-year growth being reported in the fourth quarters of 2014 and 2015. Moving right along into 2016, the absolute growth should continue, with the largest growth opportunity expected to be in the small and medium business and mid-market customers. This is followed by the large enterprises, which will continue the migration of services like email and databases into the cloud space. Cleveland Research published a sales comparison chart that shows the growth rate for 2015 and the estimated growth for 2016.