Tópico: [EN] Virtustream volta ao ringue
07-09-2016, 15:15 #1
[EN] Virtustream volta ao ringue
VMware, the tech company majority owned by EMC, outlined its latest cloud computing strategy on Monday. Lost in the hubbub was the fact that Virtustream, EMC’s “other” cloud company, had its own news.
First: Virtustream, which EMC bought for $1.2 billion in 2015, will integrate its existing enterprise cloud with VMware’s NSX virtual networking gear.
Basically that means customers who run both NSX in-house and Virtustream’s external cloud can use one screen to set up network policies for both. “If you run NSX on premises you can extend that network up into Virtustream’s cloud,” said Virtustream chief executive Rodney Rogers.
Generally, network virtualization lets companies put more than one workload on each piece of networking hardware, which helps make networking operations more flexible and programmable. If you use one router to handle multiple tasks simultaneously and also reprogram that it as needs change, you can avoid buying as much hardware.
By many accounts, including VMware’s own, NSX sales are going well. Early this year, VMware chief executive Pat Gelsinger said that business was on track to reap $600 million-a-year in sales. No wonder a big cornerstone of VMware’s new Cloud Foundation, the company’s new cloud software announced Monday, relies so heavily on NSX. After all, to enable very flexible cloud infrastructure, the ability to reprogram existing hardware in software to do more or different jobs, is a very big deal and that is what NSX promises.
Second: Virtustream will also integrate its own cloud offering with VMware’s vRealize cloud management software that helps companies manage hybrid clouds (which mix privately run and third-party cloud resources.)
Both of these new tie-ins aim to make it easier for companies to run some workloads on internal systems and others on a cloud operated by someone else. That ability to use outside servers to handle spikes in workloads is a key priority for business customers looking to keep their data center budgets in check.
The macro story here is that public cloud leaderAmazon Web Services, which amasses huge amounts of computing, storage, and networking resources to rent to customers, is winning over more IT workloads that previously went to businesses that used to buy EMC, Dell, VMware, IBM, or HPE gear.
That is the existential threat that has rocked hardware makers for the past five years. It has spurred some companies to merge or acquire as Dell is doing with its pending $67 billion acquisition of EMC, expected to close next week, and others to get smaller as IBM has done by selling off its low-end server business and HP has done by splitting itself in half.
Rogers’ take is that while most big web applications that must run on thousands of servers spread all over the world have flowed to AWS, it’ll take much longer for important enterprise software like accounting and inventory systems that have run in corporate data centers for decades, to do the same.
And those are the types of applications that Virtustream, vCloud Air, and other private clouds want to win. Private clouds use many of the building blocks of public clouds, lots of automation, the ability to charge internal departments on a pay-as-they-go basis, but are otherwise wholly managed by the customer they serve.
“By 2020, we think mission critical segment of infrastructure as a service will be 25% to 30% of the overall market,” he noted. And he thinks EMC/Virtustream will win a lot of that business.
EMC’s (and soon Dell’s) challenge however will be to figure out how to market and differentiate multiple cloud products. Dell’s EMC acquisition, and all its satellite companies, is expected to close by October. Not only must it balance vCloud and Virtustream, but the fact that IBM will also offer VMware’s Cloud Foundation on its own Softlayer cloud infrastructure. That means EMC, and soon Dell, is backing a bunch of cloud options offered by different players which gets confusing fast, and causes competitive pressures among different sales teams.
Virtustream, which specialized in enterprise-class cloud infrastructure, offers IT resources optimized to run such sensitive business applications as SAP accounting and financial software used by big corporate accounts. EMC already owned an estimated 80% stake in VMware, which had its own business-focused cloud offerings in vCloud Air. So the Virtustream acquisition caused some head scratching about which cloud would be pitched to which customers.
In announcing the Virtustream acquisition EMC chairman Joe Tucci made much of the fact that the big companies that use EMC storage were also the sorts of companies that ran or would like to run Virtustream. These big companies have security and compliance concerns that made public cloud, which relies on resources shared by many companies, not the greatest option. And yet, wasn’t vCloud Air also an enterprise-focused cloud?
Interestingly, VMware itself was interested in buying Virtustream, one source said, which, if true, makes all the subsequent positioning between EMC clouds even more interesting.
In October 2015, EMC said it would set up a joint venture to include vCloud Air and Virtustream in an effort to make sense of all of its cloud products. That idea was nixed within months.
It’s safe to say that things will remain confusing as the Dell-EMC deal gets finalized. Dell apparently realized this. The company, which itself had its own cloud ambitions, has pared them back.
For example, a few months ago it discontinued Dell Cloud Manager management software based on the company’s 2013 acquisition of Enstratius. And Dell’s top cloud executives exited the company soon after the EMC deal was announced.
At VMware’s VMworld event in Las Vegas on Monday, Michael Dell pledged that the combined company will make private cloud “easy.” That’s fine but still leaves the looming threat of Amazon’s public cloud out on the horizon.
07-09-2016, 15:49 #2
Nao deixa de ser curioso uma matéria sobre "hybrid cloud" omitir a Microsoft, atual dona da bola e do campinho, e não mencionar os esforços do saco de gatos apelidado OpenStack, ainda atribuindo uma importância no segmento corporativo que a Amazon não tem.
07-09-2016, 21:53 #3
Dell Takes Control of EMC and VMware Stake
The new Dell Technologies will have three core businesses: client devices, datacenter infrastructure, and the separate business units that include RSA, Virtustream, SecureWorks and Pivotal.
By Jeffrey Schwartz
It's official: Dell today completed its $67 billion acquisition of storage giant EMC and its controlling interest in VMware.
The coming together of the two companies aims to create a "datacenter powerhouse," according to Dell Technologies Chairman and CEO Michael Dell, who took a conference call today with analysts and media to break down the completion of the deal. By bringing EMC into the fold, Dell Technologies is now arguably the largest supplier of virtual datacenter software and hardware with a broad portfolio of servers, storage, network gear and converged and hyper-converged infrastructure that it believes will put it in a stronger position to innovate than rivals Cisco Systems, Hewlett Packard Enterprise, IBM, NetApp and numerous other players.
"We are going to be the trusted provider of essential infrastructure for the next industrial revolution for organizations to build a digital future and transform IT," Michael Dell said in remarks on this morning's call. Together with our customers, we are going to move beyond automated industrial processes, to automated complex tasks."
EMC's majority stake in virtualization leader VMware is now in the hands of Dell, which today also issued a new tracking stock. Dell executives have promised to keep VMware independent, just as EMC had kept the company at arm's length. At VMworld last week, Michael Dell joined VMware CEO Pat Gelsinger during the opening keynote where the two pointed to VMware's new partnership with IBM, which competes with Dell.
On today's call, Michael Dell was joined by EMC's David Goulden, who will lead the combined company's data infrastructure group, and Dell CFO Tom Sweet, gave prepared remarks effectively kicking off the new company and taking a few questions from analysts and reporters. Michael Dell said the combined company will draw $74 billion in revenues this year and reiterated his belief that bigger is better.
The new Dell Technologies will have three core businesses: client devices, datacenter infrastructure and the separate business units that include RSA, Virtustream, SecureWorks and Pivotal, which he vowed will continue to have autonomy to work with companies that compete with Dell and EMC's core businesses. "We also strategically aligned our capabilities where it makes sense to deliver integrated solutions in areas like hybrid cloud and security and seamless technology infrastructure from the edge to the core to the cloud," Michael Dell said. "Taken together, we have incredibly powerful set of solutions."
Dell also argued that despite the $47 billion in debt to finance the deal, critics who say the company won't be able to pay down the debt are wrong. "Our cash flow to debt service ratios are prenominal," he said. "In fact our debt payments are much less in just share buybacks and dividends [of large publicly traded companies]. Any FUD out there to the contrary is factually incorrect."
CFO Sweet added that since Dell's original $25 billion leveraged buyout three years ago, it has paid down $5 billion of the debt servicing that deal. In addition to ongoing cost savings initiatives underway at both Dell and EMC, we expect to achieve additional cost synergies associated with increased efficiencies in the combined company's supply chain and in the general administrative areas," Sweet said. "On the revenue side, we will be driving significant cross-sale opportunities in our infrastructure solutions group, and our appliance solutions group and with VMware we expect our annual leveraged flow will be three times our total pro forma cost of service and debt."
As he emphasized since the LBO, Dell pointed out to the flexibility associated with being privately held. "We don't have to cater to short term thinking that exists in the market," he said. "We can think in decades."
Experts will also be watching to see if the new Dell Technologies becomes the successful IT "powerhouse" company officials say they have created, despite numerous mergers that have failed including Symantec's acquisition of Veritas and the Hewlett Packard-Compaq deal. While critics of the deal say Dell will be saddled with debt, will risk losing key talent and may be unable to innovate at the pace of smaller companies, proponents say Michael Dell shouldn't be underestimated.
"Both Dell and EMC have proactively adapted to industry and marketplace changes, and remained solidly profitable while doing so," said Pund-IT Chief Analyst Charles King, in a blog post. "Going private in 2013 allowed Dell to fully focus its assets and acumen on successfully completing its transformation. EMC's innovation and billions in earnings to the mix will substantially speed and enhance that process, not harm it."
07-09-2016, 22:03 #4
Dell EMC merger Q+A, how Michael Dell and other execs answered the press
Dell EMC held a Q+A today as it closed the biggest merger in the history of the technology industry.
Present during the Q+A were Michael Dell, Chairman and CEO of Dell Technologies, Tom Sweet CFO, David Goulden Infrastructure Group CEO, Howard Elias President Dell EMC Services and IT, Jeremy Burton CMO Dell, Stella Lowe SVP Global Communications Dell.
IDG India, asking about HPE splitting up, competitors.
Goulden: “Can’t comment on rumours about other companies but can tell you that I think formation of Dell Tech is a landscape changing event, if you think about the other companies out there, they are in one form or another reacting to what we have done, I think that forms their strategy, we have stated for a long time that scale matters.
“The ability to invest for the long term matters, breadth and go to market reach matters as well.
We feel confident in our ability to grow and do well in both the old and new parts of our business.
Question: Virtustream public cloud destination for mission critical public cloud apps, VMware also has this and relationship with IBM. Will VMware customers be pointed to Virtustream, or will Virtustream and VMware public cloud capacities be merged together over time?
Dell: “We have no plans to merge Virtustream with any part of VMware. If you were at VMworld there was quite a lot of discussion about the evolution of service providers, public clouds and VMware’s role in that.”
‘More partnerships coming in the future.’
Question: R&D spending – 4.5bn, Dell one of the smallest spenders, are you increasing R&D spend. Overlap with products and employees, will you address this?
Sweet: “From an R&D perspective, we are satisfied with that level of spend, allows customers to... we continue to look at that and invest as appropriate given the financial model and strength of business.
“Over time we will think and plan our way through for capabilities that may come together over time. Assure customers we will continue to support all our product families as we move forward.”
Question: Cloud infrastructure, how do you plan to bring together cloud assets, what do you plan to build in house, will you be working with AWS and continuing work Microsoft?
Dell: “We have a number one position market leader in cloud IT infrastructure, Dell, EMC put together, we are a infrastructure market leader in this segment.
“Virtustream focuses on mission critical applications in the public cloud, VMware side has a significant presence in cloud partner network.
“Private cloud, hybrid cloud, native hybrid cloud available today from Dell EMC, cloud is permeating and hitting many parts of our business.”
Goulden “We also have in the family Pivotal with Cloud Foundry, many of the largest companies in world using Cloud Foundry to embrace cloud technology.
“Where cloud tech deployed, it’s not just about where IT occurs but how it occurs.
"Interested in making public cloud instances much more competitive, we are well positioned with converged and hyperconverged.”
Question: Big picture from business standpoint not often they get quite a bit larger and speed up, how do you deal with that in a sector that is moving fast?
Dell: “Always think about how we go faster as we get larger, single best way is to detach yourself from the 90 day reporting cycles which is common among large companies. Took Dell private and it kicked Dell into a new gear, the structure we have with Dell tech is not only have the scale we mentioned with R&D innovation, but also flexibility and agility where we can have start-up businesses within Dell technologies that act very fast.
“Boomi, Pivotal and others will grow organically within Dell Tech. A big focus for us is remaining nimble and agile and gaining share as we grow and serve our customers.”
07-09-2016, 22:17 #5
Organizationally, Dell today becomes Dell Technologies Inc. The company will report direct-to-consumer and enterprise financial results separately and will take a hands-off approach to the EMC Federation companies, including VMware Inc., Pivotal Software Inc., RSA Security LLC and Virtustream Inc. All will continue to report earnings separately, Dell said.
One of the most appealing aspects of the EMC acquisition was the opportunity for Dell to build a presence in enterprise cloud computing. EMC not only brings strength in converged in hyper-converged infrastructure, but a cloud computing story that resonates with enterprises.
“We can help customers build private clouds and hybrid clouds, and with the addition of Pivotal’s Cloud Foundry, we can add the leading platform for building cloud native applications,” said David Goulden, president of the Dell EMC Infrastructure Solutions Group. “And if they want to run applications in the cloud, they can move to Virtustream.” Michael Dell said there are no plans to merge VMware’s vCloud Air public cloud with Virtustream.
Dell Inc. went private three years ago, and the shoe is apparently fitting well. Speaking on the analysts call, Michael Dell indicated no interest in re-entering the public stock market. “We don’t have to cater to short-term thinking in the market,” he said. “We can think in terms of decades.” He added that the company has grown market share in its core markets for the last 13 straight quarters.
For all the drama around the fund-raising and shareholder opposition, the acquisition actually went pretty smoothly, said Jeremy Burton, chief marketing officer at Dell Technologies. “This has pretty much run like clockwork,” he said.
Customers shouldn’t expect much change in their sales teams for at least six months as existing compensation plans play out. “Things are going to remain as they are until end of Dell’s fiscal year in February, and we’ll make broader changes then,” he said.
One thing, customers should expect is more messaging around the Dell Technologies brand. “A lot of people don’t really know what Dell Technologies stands for,” Burton said. With the addition of market-leading businesses in the areas of virtualization, security, platform-as-a-service, mobile management and cloud infrastructure, today’s Dell is our bigger and more diverse than the brand most people know.
The bottom line is that “We’re the only guys that have got a competitive stack,” Burton said. “IBM doesn’t any more and HPE is about to unload all its software. It’s ourselves and maybe Oracle, but Oracle isn’t focused on server infrastructure.”
08-09-2016, 18:14 #6
Virtustream, vCloud Air vs AWS, Azure, Softlayer
Veteran technology analyst Kurt Marko says he has been impressed by Virtustream’s cloud management technology — particularly with building self-service provisioning portals around applications. In a note to Data Center Knowledge, Marko said he feels neither Virtustream nor vCloud Air intend to compete against the major public cloud players today for capacity. Virtustream may continue to lead with its services, though this could end up painting vCloud Air into a corner.
“Virtustream knows it can’t and isn’t trying to compete with AWS,” writes Marko. “Instead, it targets its workload packing uVM technology [PDF] to traditional, business critical applications like SAP (including HANA), Oracle (and its app ecosystem), Microsoft Dynamics, and vertical applications in finance or other industries. vCloud Air isn’t an AWS or Azure competitor either — no one will base a cloud application or infrastructure strategy around it. Instead, it seems relegated to be a backup/disaster recovery service for on-premises VMware infrastructure. Indeed, vCloud Air’s future looks grim with the Cloud Foundation announcement, and IBM ramping up VMware SDDC services on SoftLayer.”
Marko went on to say he expects Dell’s existing plan to support Microsoft’s forthcoming Azure Stack to go forward as planned, thus making Azure a critical part of Dell’s hybrid cloud strategy, regardless of what happens with VMware and Virtustream.
“It’s unclear how or if this competitive tension between on-prem Microsoft and VMware infrastructure gets resolved,” he wrote. “Dell could continue with the posture that it gives customers choice to use whichever they prefer. In the long term, I think Microsoft has the stronger, more technically pure, and economically viable hybrid cloud strategy. But VMware has a half-million customers that aren’t in any rush to change. So perhaps we see tighter workload migration features between vSphere and both Azure (mainstream workloads) andVirtustream (high-end, mission critical).”
Virtustream, VMware to Vie for Hybrid Cloud After Dell Reorg
Última edição por 5ms; 08-09-2016 às 18:20.