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February 25, 2010

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Andy

Issues I see on this:
for VMWare - Competing with its partner suite can easily destroy the vmware ecosystem
for EMC - while it is true that EMC can still sell the sw trough it vmware partnership so can ANY vmware partner so it has no competitive advantage there.
For EMC is just a step back from the high-end sw management stack to just managing the infrastructure.
No more "closed-loop-orchestration", no more "managing the private cloud". Just managing the plumbing...

Chuck Hollis

Hi Andy

Not entirely. EMC's Ionix group will continue to source these products from VMware, and integrate them into the broader Ionix stack.

Opinions may vary, but I see this as a "best of both worlds" scenario in many regards: VMware focuses on the "close to server" stuff; EMC Ionix takes that, adds more for an even broader stack.

Divide and conquer?

-- Chuck

Andy

well, only the "divided" seems to be Ionix in this case... I imagine they can still go to their customer and say "ehi, we have the best network/storage management sw in the world, just let's take 'something' from vmware (i.e. everything else from cfg mgmt, servers, service management, discovery) and we have a complete picture...".
A bit funny. Will EMC Ionix sell all VMWare products from now on (vcenter and so on...)?

Chuck Hollis

Andy

I don't know if you're aware of this, but in larger environments, multiple products (usually from multiple vendors) are required to provide all the required management functions.

The good part is that Ionix is now pre-integrated with VMware management tools, and vice-versa. EMC will continue to OEM/resell the products sold to VMware.

So, I guess I'm missing something -- what's your beef?

-- Chuck

TJ

Chuck,

I don't disagree with how powerful this will be for VMWare, and the competitive advantage that this will result in for them. However, why not have EMC retain ownership of the 4 products (ADM, ConfigureSoft, FastScale, Infra) and license VMWare to resell them? As far as product marketing and engineering, this could be accomplished as a joint effort with EMC and VMWare (kind of like EMC, Cisco, and VMWare are currently doing with vBlock). With this proposed approach, VMWare would still have these products as part of their portfolio and would be able to market them the same way. EMC would retain the ability to market and sell these products as well (separately OR through VMWare).

The problem I see with the current approach for EMC is that VMWare can resell the 4 products through EMC OR resell them through EMC's competitors, giving EMC's competition an advantage in selling situations. With the alternative approach I describe above, EMC maintains control of who resells the products.

What say you?

Chuck Hollis

TJ

That's a good question, so thanks for asking.

If you go through the list of technologies that VMware acquired, it's pretty easy to see that each of them could benefit from a very tight handshake with the rest of the VMware portfolio.

The best way to get that sort of velcro integration? Co-locate the assets organizationally. Larger IT vendors with broad portfolios do this sort of "co-locate assets to increase synergy" optimizations all the time.

The key differences here? One, VMware is completely independent, so what they want to do comes first. Second, VMware is a separate company, so this looks more like a bit of M&A more than a simple reorganization announcement.

That was the thinking anyway ...

-- Chuck

The comments to this entry are closed.

Chuck Hollis


  • Chuck Hollis
    Chief Strategist, VMware SAS BU
    @chuckhollis

    Chuck has recently joined VMware in a new role, and is quite enthused!

    Previously, he was with EMC for 18 years, most of them great.

    He enjoys speaking to customer and industry audiences about a variety of technology topics, and -- of course -- enjoys blogging.

    Chuck lives in Holliston, MA with his wife, three kids and four dogs when he's not travelling. In his spare time, Chuck is working on his second career as an aging rock musician.

    Warning: do not buy him a drink when there is a piano nearby.
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