“Open source has always provided a number of benefits, including easing adoption costs, propagating a better understanding of the technology, and allowing for faster evolution and commercialization of products and services based on it,” noted Terry Woloszyn, Founder & CEO, Leeward Security Ltd., in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “This is clearly evident with the OpenStack and CloudStack,” Woloszyn continued, “and others that have been quickly commercialized as...| By Greg Ness | Article Rating: |
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| March 17, 2013 01:00 PM EDT | Reads: |
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I have heard of TAM (total addressable market) estimates for VMware of about $80B. I’m not sure if that includes the much touted hybrid cloud (or cloud virtualization) opportunity.
VMware has stirred up plenty of news lately for sending mixed messages about the public cloud, and its willingness to allow its customers to leverage true hybrid cloud operating models (which would involve seamlessly connecting public clouds like AWS and Azure with their private clouds, or The End of Server Virtualization Lock-In).
Gartner forecasts the shipment of about 10M servers per year over the next three years, with about 50% of them being x86. What if enterprises wanted the strategic scalability, agility and protection of the hybrid cloud model, instead of the tactical agility, efficiency and protection of server virtualization?

Hybrid cloud would give enterprises more complete control of their apps and services.
If VMware could get $4k/year for each server (traditional and x86) that would amount to a TAM of $120B based on a three year refresh rate. Yet that would represent a major business model shift and limit the amount of lock-in that VMware would have over its customers operating on their private cloud platform. They could face margin erosion for their core lines.
On the other hand, if Microsoft Azure truly embraced hybrid cloud, it could force VMware to decouple server from cloud virtualization and make the leap to an entirely new operating model. That could be even more interesting as it would give Microsoft a powerful position offering N+1 app and service in the cloud, for everything from development and testing to failover. Microsoft could trump VMware. Hybrid cloud also is a lower risk proposition for Microsoft, as well as the opportunity to end VMware’s dominance of server virtualization.
If cloud virtualization is the natural evolution of server virtualization, then you can expect VMware, Microsoft and several others to go after an (estimated) $120B TAM. Stay tuned. This should be interesting.
Published March 17, 2013 Reads 1,696
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More Stories By Greg Ness
Greg Ness is a Silicon Valley marketing veteran with background in networking, security, virtualization and cloud computing. He is VP Marketing at CloudVelocity. Formerly at Vantage Data Centers, Infoblox, Blue Lane Technologies, Juniper Networks, Redline Networks, McAfee, IntruVerofficer at Networks and ShoreTel. He is one of the world's top cloud bloggers.
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Cloud enables SMBs to access new, scalable resources – previously only available to enterprises – in flexible and cost-effective ways. McKinsey’s SMB Cloud Report projects the public cloud market to reach $40-$50 billion by 2015, with SMBs comprising 65% of public cloud spending in 2015. But selling cloud to SMBs raises the questions of who, what and how.
In her session at the 12th International Cloud Expo, Manjula Talreja, VP of Cisco’s Global Cloud Business Development Team, will discuss the...
In the face of rapidly increasing amounts of unstructured data, industry is investing heavily to turn machines into services and connect them to analytics engines that will extract an extraordinary amount of value and unleash a productivity revolution for both businesses and consumers.
In the health care, transportation and energy sectors alone, the combination of machine diagnostics software and analytics will eliminate as much as $150 billion in waste.
In his session at the 12th Internation...
The economics of business are radically changing due to the way in which software and services are being delivered thanks to cloud computing. In his session at 12th Cloud Expo | Cloud Expo New York [10-13 June, 2013], Mike Kavis will cover six reasons for the disruption.
New, "Super-Sized" 4-Day Cloud Computing Bootcamp is a brief introduction to cloud computing carefully created and devised to help you keep up with evolving trends like Big Data, PaaS, APIs, Mobile, Social and Data Analytics. Solutions built around these topics require a sound cloud computing infrastructure to be successful while assisting customers harvest real benefits from this transformational change that is happening in the IT ecosystem.
As enterprises deploy private IaaS clouds into production they are reevaluating their future application delivery models. SUSE and WSO2 believe that private PaaS will leverage the automation and scalability of Private IaaS solutions, such as OpenStack-based SUSE Cloud, to deliver the secure, standardized development environments that will make migrating to an agile, serviceoriented delivery model possible.
In their session at the 12th International Cloud Expo, Chris Haddad, VP of Technology Ev...
“Trust is an ongoing journey and sits at the foundation of any vendor relationship – the companies that don’t consistently earn trust won’t be around long,” noted Henrik Rosendahl, Senior VP of Cloud Solutions at Quantum, in this exclusive Q&A with Cloud Expo Conference Chair Jeremy Geelan. “As they do more with cloud, trust will organically grow – maybe it’s just about meeting SLAs or seeing firsthand that data is there when you need it,” Rosendahl continued.
Cloud Computing Journal: The move ...
Cloud enables SMBs to access new, scalable resources – previously only available to enterprises – in flexible and cost-effective ways. McKinsey’s SMB Cloud Report projects the public cloud market to reach $40-$50 billion by 2015, with SMBs comprising 65% of public cloud spending in 2015. But selling cloud to SMBs raises the questions of who, what and how.
In this session Manjula Talreja, VP of Cisco’s Global Cloud Business Development Team, will discuss the importance of knowing who SMB...
Analyzing Hadoop jobs and speeding them up is often a tedious and time consuming effort that requires experts. In his upcoming session at 12th Cloud Expo | Cloud Expo New York [10-13 June, 2013], Michael Kopp will be showing how proven APM techniques can be used to speed up Hadoop jobs at the core, without going through tons of log files, beyond just adding more hardware and within minutes instead of hours or days.
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