Welcome!

SDN Journal Authors: Elizabeth White, Yeshim Deniz, Liz McMillan, Pat Romanski, TJ Randall

Related Topics: Containers Expo Blog, Microservices Expo, Microsoft Cloud, Agile Computing, @CloudExpo, @DXWorldExpo, SDN Journal

Containers Expo Blog: Article

VMware Crosses the Rubicon Redux

Move risks alienating customers and partners

VMware's (VMW) recent hybrid cloud announcement was both expected and yet provocative. It falls into a pattern of successful moves made in virtualization security and networking as the company to grow its addressable market by virtualizing servers and delivering increased IT agility, efficiency and economy.

In 2009 I talked about how VMware, through acquisitions and engineering, entered the security space despite a robust virtualization security ecosystem (see VMware Crosses the Rubicon - March 2009). VMware was threatened then by the new security challenges being brought into the production data center by virtualization and the inability of its partners to move fast enough to address them.

There were both technology and business case issues to the virtualization ecosystem challenge in those days.  VMware responded to the tepid ecosystem progress at least in part by buying (my alma mater) Blue Lane Technologies for its firewall and advanced intrusion prevention capabilities. Many of those capabilities became the core of VMware's security offerings.

Today VMware is caught between success in the private cloud (server virtualization) and the rapid rise of public cloud leader Amazon (AMZN) along with the high profile entry of Microsoft Azure (MSFT) into the hybrid cloud space. Today enterprises can see three different cloud visions from three very powerful and capable companies.

If I were to summarize where the three clouds are today I would say that the public cloud is where the buzz is; the private cloud is where the enterprise money is; and the hybrid cloud is where the future is.

Hybrid cloud is the natural extension of the private cloud. It is an operating model whereby enterprises can get the benefits of the public cloud (primarily agility and scalability) with the control of the private cloud (primarily security). This has been discussed previously (and more extensively) at Seeking Alpha (see Hybrid is a Whole New Cloud).

In short, the public cloud has not attracted material enterprise spend, because of control and security issues, while the virtualization-driven private cloud has had its own set of issues, including virtualization vendor lock-in.

As mentioned before in hybrid cloud, the hybrid cloud market(TAM) could be sizable, perhaps as high as $60B (based on hybrid cloud software running on 30M servers to be shipped over the next three years and a comparable $2k/server unit price and a three year refresh rate), compared to VMware's existing $50B total addressable market. Amazon's estimated public cloud revenues are estimated to be under $3B for 2012 (see Amazons Cloud Revenues Examined).

There has been plenty of discussion about VMware versus Amazon, so I would like to explore the context of some other highly relevant battles.

Microsoft
As hybrid cloud emerged on the scene it presented both a threat and an opportunity to VMware. It is the natural evolution of server virtualization; indeed, hybrid cloud could be thought of as cloud virtualization.  At the same time Microsoft's installed base, combined with its new Azure cloud offering creates an even more promising opening for the Redmond powerhouse than its first major battle with VMware over server virtualization.

A true hybrid cloud operating model is the seamless integration of both public and private clouds for both existing and new enterprise apps, without requiring server virtualization.  With that definition in mind it is easy to understand why Microsoft could be very interested in the rapid evolution of hybrid cloud while VMware might have a more tentative stance.

Microsoft could use the hybrid cloud to decouple VMware from its strong position in server virtualization, by embracing the seamless hybrid cloud along with its Azure offering. Think cloud virtualization without requiring server virtualization.  In some respects, VMware has no choice but to embrace hybrid cloud and cloud virtualization, and position itself as a potential competitor to even its most strategic partners.

Service Providers
Many VMware service provider partners are building their own hybrid clouds as a complementary offering to the VMware private cloud.  Until now it was a clear win/win for both.  Yet that proposition has now become muddled.  Some of those partners (who have followed VMware over the years) have no doubt noted how VMware's hybrid cloud move is very similar to VMware's first moves within the virtualization security ecosystem, in which VMware moved aggressively with new products that competed directly with some security ecosystem members.  Still others likely have enjoyed many years of robust cooperation.

Hardware and Software Players
In addition, you can expect a new generation of hybrid cloud killer apps, reshaping how software and IT services are delivered. See, for example: The Cloud's Next Killer Apps.  Hybrid cloud solutions will likely deliver levels of agility, protection and scale that have been impractical for most organizations in the private and public cloud operating modes.

So as VMware crosses the Rubicon yet again, it promises to keep disrupting tired status quos and perhaps even a few new and vibrant ones.  One thing is clear, IT is about to undergo a transformation to more dynamic, elastic and resilient operating models that will likely depend less on dedicated hardware and more on agility, resilience and scale.

VMware has emerged as a world-class disruptor.  Looking forward, it certainly has the momentum and the brand to continue to upend established markets.  Yet as it grows it runs the risks of upending its own markets and enabling competitive inroads like never before.  2013 and 2014 should turn out to be pivotal years for VMware and at least a dozen well established companies, including Microsoft.  Based on my own estimates (mentioned earlier), hybrid cloud could be a potential $30B to $60B market.  Much of that spending may come from existing IT categories and one of them could be server virtualization (private cloud).

More Stories By Greg Ness

Gregory Ness is the VP of Marketing of Vidder and has over 30 years of experience in marketing technology, B2B and consumer products and services. Prior to Vidder, he was VP of Marketing at cloud migration pioneer CloudVelox. Before CloudVelox he held marketing leadership positions at Vantage Data Centers, Infoblox (BLOX), BlueLane Technologies (VMW), Redline Networks (JNPR), IntruVert (INTC) and ShoreTel (SHOR). He has a BA from Reed College and an MA from The University of Texas at Austin. He has spoken on virtualization, networking, security and cloud computing topics at numerous conferences including CiscoLive, Interop and Future in Review.

@CloudExpo Stories
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
We all know that end users experience the internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices - not doing so will be a path to eventual ...
"DivvyCloud as a company set out to help customers automate solutions to the most common cloud problems," noted Jeremy Snyder, VP of Business Development at DivvyCloud, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
DXWorldEXPO LLC announced today that ICC-USA, a computer systems integrator and server manufacturing company focused on developing products and product appliances, will exhibit at the 22nd International CloudEXPO | DXWorldEXPO. DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City. ICC is a computer systems integrator and server manufacturing company focused on developing products and product appliances to meet a wide range of ...
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Sanjeev Sharma Joins November 11-13, 2018 @DevOpsSummit at @CloudEXPO New York Faculty. Sanjeev Sharma is an internationally known DevOps and Cloud Transformation thought leader, technology executive, and author. Sanjeev's industry experience includes tenures as CTO, Technical Sales leader, and Cloud Architect leader. As an IBM Distinguished Engineer, Sanjeev is recognized at the highest levels of IBM's core of technical leaders.
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
As Cybric's Chief Technology Officer, Mike D. Kail is responsible for the strategic vision and technical direction of the platform. Prior to founding Cybric, Mike was Yahoo's CIO and SVP of Infrastructure, where he led the IT and Data Center functions for the company. He has more than 24 years of IT Operations experience with a focus on highly-scalable architectures.
Headquartered in Plainsboro, NJ, Synametrics Technologies has provided IT professionals and computer systems developers since 1997. Based on the success of their initial product offerings (WinSQL and DeltaCopy), the company continues to create and hone innovative products that help its customers get more from their computer applications, databases and infrastructure. To date, over one million users around the world have chosen Synametrics solutions to help power their accelerated business or per...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
In an era of historic innovation fueled by unprecedented access to data and technology, the low cost and risk of entering new markets has leveled the playing field for business. Today, any ambitious innovator can easily introduce a new application or product that can reinvent business models and transform the client experience. In their Day 2 Keynote at 19th Cloud Expo, Mercer Rowe, IBM Vice President of Strategic Alliances, and Raejeanne Skillern, Intel Vice President of Data Center Group and ...
We are seeing a major migration of enterprises applications to the cloud. As cloud and business use of real time applications accelerate, legacy networks are no longer able to architecturally support cloud adoption and deliver the performance and security required by highly distributed enterprises. These outdated solutions have become more costly and complicated to implement, install, manage, and maintain.SD-WAN offers unlimited capabilities for accessing the benefits of the cloud and Internet. ...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
Founded in 2000, Chetu Inc. is a global provider of customized software development solutions and IT staff augmentation services for software technology providers. By providing clients with unparalleled niche technology expertise and industry experience, Chetu has become the premiere long-term, back-end software development partner for start-ups, SMBs, and Fortune 500 companies. Chetu is headquartered in Plantation, Florida, with thirteen offices throughout the U.S. and abroad.
DXWorldEXPO LLC announced today that Dez Blanchfield joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Dez is a strategic leader in business and digital transformation with 25 years of experience in the IT and telecommunications industries developing strategies and implementing business initiatives. He has a breadth of expertise spanning technologies such as cloud computing, big data and analytics, cognitive computing, m...
Bill Schmarzo, author of "Big Data: Understanding How Data Powers Big Business" and "Big Data MBA: Driving Business Strategies with Data Science," is responsible for setting the strategy and defining the Big Data service offerings and capabilities for EMC Global Services Big Data Practice. As the CTO for the Big Data Practice, he is responsible for working with organizations to help them identify where and how to start their big data journeys. He's written several white papers, is an avid blogge...
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let's say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., discussed how these tools can be leveraged to develop a lasting competitive advantage ...
In his session at 21st Cloud Expo, James Henry, Co-CEO/CTO of Calgary Scientific Inc., introduced you to the challenges, solutions and benefits of training AI systems to solve visual problems with an emphasis on improving AIs with continuous training in the field. He explored applications in several industries and discussed technologies that allow the deployment of advanced visualization solutions to the cloud.