“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Security Ltd., in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “This is clearly evident with the OpenStack and CloudStack,” Woloszyn continued, “and others that have been quickly commercialized as...| By Greg Ness | Article Rating: |
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| March 17, 2013 01:00 PM EDT | Reads: |
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I have heard of TAM (total addressable market) estimates for VMware of about $80B. I’m not sure if that includes the much touted hybrid cloud (or cloud virtualization) opportunity.
VMware has stirred up plenty of news lately for sending mixed messages about the public cloud, and its willingness to allow its customers to leverage true hybrid cloud operating models (which would involve seamlessly connecting public clouds like AWS and Azure with their private clouds, or The End of Server Virtualization Lock-In).
Gartner forecasts the shipment of about 10M servers per year over the next three years, with about 50% of them being x86. What if enterprises wanted the strategic scalability, agility and protection of the hybrid cloud model, instead of the tactical agility, efficiency and protection of server virtualization?

Hybrid cloud would give enterprises more complete control of their apps and services.
If VMware could get $4k/year for each server (traditional and x86) that would amount to a TAM of $120B based on a three year refresh rate. Yet that would represent a major business model shift and limit the amount of lock-in that VMware would have over its customers operating on their private cloud platform. They could face margin erosion for their core lines.
On the other hand, if Microsoft Azure truly embraced hybrid cloud, it could force VMware to decouple server from cloud virtualization and make the leap to an entirely new operating model. That could be even more interesting as it would give Microsoft a powerful position offering N+1 app and service in the cloud, for everything from development and testing to failover. Microsoft could trump VMware. Hybrid cloud also is a lower risk proposition for Microsoft, as well as the opportunity to end VMware’s dominance of server virtualization.
If cloud virtualization is the natural evolution of server virtualization, then you can expect VMware, Microsoft and several others to go after an (estimated) $120B TAM. Stay tuned. This should be interesting.
Published March 17, 2013 Reads 1,717
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More Stories By Greg Ness
Greg Ness is a Silicon Valley marketing veteran with background in networking, security, virtualization and cloud computing. He is VP Marketing at CloudVelocity. Formerly at Vantage Data Centers, Infoblox, Blue Lane Technologies, Juniper Networks, Redline Networks, McAfee, IntruVerofficer at Networks and ShoreTel. He is one of the world's top cloud bloggers.
“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Security Ltd., in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “This is clearly evident with the OpenStack and CloudStack,” Woloszyn continued, “and others that have been quickly commercialized as...May. 23, 2013 03:00 PM EDT Reads: 1,329 |
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SYS-CON Events announced today that OpenStack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York. OpenStack software controls large pools of compute, storage, and networking resources throughout a datacenter, all managed by a dashboard that gives administrators control while empowering their users to provision resources through a web interface.
OpenStack powers some of the most widely-used SaaS app...
SYS-CON Events announced today that Wowrack will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York.
Wowrack’s core expertise lies in high-availability Private and Public Cloud IaaS Hosting Solutions. Wowrack provides a true Hybrid service – where business release all IT management and hardware provisioning – taking the data center and server system administrative headaches off our customer’s shoulders. ...
Many have heard of OAuth but are unsure of how it might apply to their business.
In his session at the 12th International Cloud Expo, Alistair Farquharson, CTO of SOA Software, will describe how OAuth can be used to facilitate certain business models and simplify the sharing of private data.
Alistair Farquharson is a visionary industry veteran focused on using disruptive technologies to drive business growth and improve efficiency and agility within organizations. As the CTO of SOA Software A...
SYS-CON Events announced today that nfina Technologies, a provider of highly reliable cloud server products, will exhibit at SYS-CON's 12th International Cloud Expo, which will take place on June 10–13, 2013, at the Javits Center in New York City, New York.
nfina Technologies develops, manufactures, and markets highly reliable cloud server products, designed to solve the most demanding data center requirements in mission-critical cloud applications. Nfina’s staff has decades of experience in co...
“Social, mobile, analytics and cloud can’t be looked at as distinct technology trends; they are facets of the same movement and an everyday reality for consumers and businesses alike,” said Craig Sowell, IBM VP of SmartCloud Marketing, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “This means that businesses need to start looking at trends as one: cloud is the delivery, analytics is the unique insight, social is a shareable service, and mobile is the ubiquitous access.”
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In his session at the 12th International Cloud Expo, Dave Eichorn, Global Data Center Practice Head at Zensar, will share a case study describing how a utility services company handled the migration of its Microsoft platform to the cloud. Challenged with the time-consuming task of opening operations out of temporary offices, this company struggled with the need to simultaneously access data that was accumulated from a vast amount of data-intensive jobs. Zensar migrated the company’s application ...
Organizations across the world are increasingly starting to see the benefits of moving more and more services to the cloud. The focus on the cost-saving potential of cloud is rapidly shifting to completely transforming the business with cloud. As organizations are investing enormous sums on technology they are starting to realize that in order to maximize the return on investment and accelerate the business transformation process the first area of focus should be people. By ensuring the organiza...
You're getting pitched every day from your legacy enterprise software and hardware vendors about "cloud." They're doing an amazing job of convincing your CIO and CTO about what cloud is and how you should use it. The reality is they're defending their shrinking market share and keeping you on the legacy treadmill for as long as they can by selling you solutions that aren't "cloud."
In her session at the 12th International Cloud Expo, Niki Acosta, Cloud Evangelista for Rackspace, will talk thro...
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