Welcome!

SDN Journal Authors: Daniel Gordon, John Walsh, Elizabeth White, Liz McMillan, Sven Olav Lund

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
DX World EXPO, LLC, a Lighthouse Point, Florida-based startup trade show producer and the creator of "DXWorldEXPO® - Digital Transformation Conference & Expo" has announced its executive management team. The team is headed by Levent Selamoglu, who has been named CEO. "Now is the time for a truly global DX event, to bring together the leading minds from the technology world in a conversation about Digital Transformation," he said in making the announcement.
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of the 22nd International Cloud Expo, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great deals to gre...
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"ZeroStack is a startup in Silicon Valley. We're solving a very interesting problem around bringing public cloud convenience with private cloud control for enterprises and mid-size companies," explained Kamesh Pemmaraju, VP of Product Management at ZeroStack, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Large industrial manufacturing organizations are adopting the agile principles of cloud software companies. The industrial manufacturing development process has not scaled over time. Now that design CAD teams are geographically distributed, centralizing their work is key. With large multi-gigabyte projects, outdated tools have stifled industrial team agility, time-to-market milestones, and impacted P&L stakeholders.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...
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.
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
22nd International Cloud Expo, taking place June 5-7, 2018, at the Javits Center in New York City, NY, and co-located with the 1st DXWorld Expo will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud ...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...