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| VIEW EVENT INFORMATION: amazon |
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AWS Gets Richer With VMware partnership |
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About the organization Amazon:
Type: Business
Sub-Types: Downloading Agent, Website, Retailing Agent, E-Commerce, Internet, Online Store, Store, Application Software, Telecommunication, Telecommunication Software, Online Shop |
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Notable Organizations: Amazon, Techcrunch
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| VMware signed deals with Microsoft, Google and IBM earlier this year as it has shifted firmly to a hybrid cloud strategy, but it was the deal it signed with AWS this week that has had everybody talking.
The cloud infrastructure market breaks down to AWS with around a third of the market — and everybody else. Microsoft is the closest competitor with around 10 percent. While VMware has had deals in place with other major players, the one with AWS matters more because it gives AWS even greater advantage in the cloud market.
The traditional vendors have taken a hybrid approach with Microsoft and IBM arguing that most large organizations, bogged down in legacy hardware and software, can’t afford to go whole hog into the cloud. It’s an argument that makes sense, especially for their customer bases.
AWS on the other hand has argued that the future is the cloud, and while it welcomed any customers, it made its bet with the companies moving to the cloud or who were born there. That approach has clearly worked with the company on an $11.5 billion run rate this year.
Meanwhile, in spite of those strategic deals with other larger IT vendors, VMware has struggled with the cloud market. It boasts almost 100 percent penetration inside the data center. It was and remains the go-to company for server virtualization, and while that worked fine in a data center-centric world, that world is changing rapidly.
What VMware did was provide a way to make use of all the resources in a machine in a much more efficient way, letting you break down that single server into multiple virtual machines. That was great for its time in the early 2000s when servers were expensive and finding ways to use them as efficiently as possible was a prime objective for IT.
The cloud changed all of that, moving the virtual machine to the cloud where you could spin up whatever resources you needed whenever you wanted and only pay for the resources you were actually using. If you needed more, you simply spun up more. If you needed less, you could take them down. That put the data center model — and VMware — at a distinct disadvantage. |
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