VMware Hybrid Cloud Announcement

On May 21, VMware launched its Hybrid Cloud Service; what is this, and what does it mean to organizations? During this event, Pat Gelsinger and Bill Fathers laid out a compelling rationale for customers to use their service.

  1. Seamless integration of existing workloads with the Public Cloud
  2. One set of support tools, and the same support organization
  3. Pay as you go, with simple offerings and simplified billing.

So how is VMware’s announcement relevant and important to us? VMware is the current choice for Private Clouds, thanks to its vSphere platform. Other players include Microsoft and Citrix. At the same time, Amazon is the de facto leader in Public Cloud services with its AWS platform, with competition from Microsoft, Google, and the OpenStack Alliance.

What are these different types of Clouds? Clouds come in three flavors:

Private Cloud, where information and applications reside within the organizational network. Workloads can move between sites and datacenters within their network.

pic1Public Cloud, where information and applications live within a service provider’s network. There are many providers offering similar services that customers can choose from, based upon their needs.

pic2Hybrid Cloud, which combines elements from both these options. The information and applications stay within the organization’s network under normal operations. They can move to a Public Cloud upon high demand, seasonal factors, or a major failure. In many cases, it is possible to retain critical information onsite within the company.

pic3Who is this announcement targeted at? All of the Public Cloud players, Amazon in particular. In fact #3 seemed positioning VMware as the anti-Amazon.

Is this a game changer? Not really, this announcement does not change the pace of workload migration to the cloud anytime soon.

In that case, why announce this service at all? The Hybrid Cloud Service is crucial to VMware’s ability to keep Enterprise customers within their fold. It is targeted at existing customers and partners, intended to prevent defections to rival providers and platforms.

What could the future hold? Workloads are slowly but surely moving to the Public Cloud. Over the next 10-15 years, most standard workloads will migrate to Public Clouds for economic reasons. If cheap capacity were available on demand, why would you not rent the resource? Enterprises choose either to build capacity for peak workloads (wasted resources) or average workloads (poor response to peak workloads), neither of which is optimal. The Public Cloud permits them to optimize for both fixed and variable costs at the same time, which is nirvana for the CIO and the CFO.

As for the competition, it would be interesting to see what develops at Cisco Live, Google I/O, Red Hat Summit, HP Discover, IBM Edge, Citrix Synergy, and similar events.

What do you think the future holds for Cloud Computing? Who are likely to be the leaders over the next 5-10 years? I would love to hear from you.

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