Barcelona should be rocking this week, what with VMworld Europe (October 12-15), and the news that Dell intends to acquire EMC, which owns 81% of VMware. So an announcement that vRealize, VMware’s hybrid cloud management platform, is getting a makeover, can easily get lost in the noise. Due to ship later this quarter, VMware vRealize Automation and vRealize Business Standard are now sporting shiny new release numbers (7), but more importantly, they address some of the cloud issues confronting a half-million vSphere users..
“The last couple of years people were playing at this (cloud management) at various levels,” said Sajai Krishnan, VP of Product Marketing, Management Suites Business Unit, VMware. Now the market would like to know what their true costs are, he told IT Trends & Analysis.
VMware is one of the leaders in cloud management, he said, and the new releases incorporate the three elements of a cloud management platform: automation, operations and business. vRealize Automation makes it easier for teams to automate the lifecycle of infrastructure and application resources, while vRealize Business makes it easier to understand the cost of infrastructure services.
While these are upgrades, and should appeal to vRealize users, Krishnan believers the biggest upside is outside this segment. “The good news is with over 500,000 customers with vSphere… we can seek them out”. “It’s very easy for vSphere customers to carve out portions of their infrastructure that they want to ‘cloudify’.”
He said new customers are coming off the sidelines as they look for agility through automation. We get them enough choice to address agility without losing sight of security, he added.
One of the big challenges of networking and security is that it is a very mix-and-match business with a lot of room for error, said Krishnan. “This helps to avoid that by bringing in automation…”
Everything cloud is getting increasing attention, and hybrid is no exception. According to one report, the hybrid cloud market will be worth just under $90 billion by 2019, a Compound Annual Growth Rate (CAGR) of 27.3% from $25.28 billion in 2014.
A more recent IDC study puts total worldwide spending on cloud IT infrastructure – i.e. servers, storage and Ethernet switches – will top $32.6 billion for the year, a 24% increase on last year’s total. Public cloud spending will increase by 29.6% year-over-year, while private cloud will rise by 15.8%. Non-cloud infrastructure spending will drop by 1.6% in 2015, to $66.8 billion.
IDC forecasts that cloud IT infrastructure spending will grow at a CAGR of 15.1%, hitting $53.1 billion by 2019, giving it a 46% share of the market overall. Public cloud will account for most of that, growing at 16.3% CAGR to $33.6 billion, while private cloud will grow 13.2% CAGR to $19.4 billion in 2019. Non-cloud IT infrastructure spending will continue its downward spiral, dropping by 1.7% CAGR over the same period.
Although VMware represents a small portion of EMC’s business, unlike the latter, it has been growing, and has solid footholds in several hot markets – virtualization, cloud and datacenter. IDC reports that VMware is the biggest vendor for cloud system management software with 21.6% of the $2.3 billion market, and it is also the top vendor in the $2 billion data center automation software market with a 24% share.
Stu Miniman, Wikibon: VMware “has one of the best ecosystems in the marketplace,” he noted. “That being said, it’s not the coolest thing. It’s not the hottest thing. And you have to be careful that the market doesn’t leave you behind.”
David Johnson, Forrester: “VMware’s strength has been making the difficult pieces easier,” he said. “So, as complexity goes up, the opportunity for a closed platform or a proprietary vendor who can coordinate and get things done goes up as well, because otherwise, the complexity is too high.” This ability to simplify might be VMware’s saving grace.
Matt Eastwood, IDC: “So, the challenge that I see, and it’s not unique to just VMware, is that they have to deliver that message not just to infrastructure folks, but to the developer audience. And that’s not a core constituency that they spend a lot of time talking to.”
Mindy Cancila, Gartner: VMware “must do three key things to remain relevant as organizations adopt public cloud services: accelerate investments to mature the vCloud Air platform; protect and evolve the large, existing ESX install base; and continue building integration between VMware environments and other public clouds.”
Mike Matchett, Taneja Group: VMware is keeping up with it all, he said. “Right now, I think the value proposition that VMware is offering is shifting adequately, and in fact, quite admirably, to cover and extend into containers and extend into cloud.”
Eric Hanselman, 451 Research: The transition away from the legacy data center is going to take a significant amount of time, he noted. And at any rate, “VMware has the ability to work both sides of that equation.”
The Fiddly Bits
VMware vRealize Automation 7 introduces unified service blueprint capabilities that will enable IT and DevOps teams to simplify and accelerate the delivery of integrated multi-tier applications with application-centric networking and security across clouds. It will be available as a standalone product and as part of VMware vCloud Suite and VMware vRealize Suite. The software is sold standalone in two editions: Advanced ($400 per Operating System Instance or OSI) and Enterprise ($775 per OSI). The vRealize Suite is available in two editions: Advanced ($6,750 per CPU) and Enterprise ($9,950 per CPU).
VMware vRealize Business Standard 7 introduces several new and enhanced capabilities to provide IT teams with increased transparency and control over the costs and quality of IT services. It will be available standalone product and as part of VMware vCloud Suite and VMware vRealize Suite. The software is sold standalone in 25 OSI packs at $200 per OSI.