Let’s face it. Sometimes being an “enabler,” is admirable. However, if you’ve seen an episode of Intervention lately, being an enabler is not always a good thing. VMware’s IaaS strategy was to enable its partners to offer vCloud services and give it’s customers near unlimited (>9,500 partners) choice of cloud providers. There was a big issue with this strategy – it assumed that VMware’s cloud partners would be A-OK with allowing customers to come and go. At the end of the day, that didn’t meet VMware’s provider partners business model. No one wants to race to the bottom of a commodity market and providers rightfully should be concerned with their ability to differentiate with competitors and show value while sharing a common VMware stack. Today’s news shouldn’t come as too much of a surprise. Nearly two years ago I blogged that this day would eventually come. The market would force VMware to be a provider, and it has. Forget about the talk of “open.” At the end of the day, every vendor and provider is in the business of doing whatever possible to lock customers in and make it tough for them to leave. Providers have always wanted high degrees of extensibility so that they can add value to a cloud offering and in the end offer enough customized services to make it tough for customers to leave. If we look at today’s IaaS announcement, VMware is trying to have greater control of the “choice” it’s customers get. Choice will mean a VMware-hosted offering that in theory will make it easy for customers to move VMware-based workloads in and out of the pubic cloud. The aim is an “inside-out” approach where workloads between a private data center and a public cloud operate seamlessly. The trick here, however, is how important mobility and choice will be to customers. Workloads that go straight to cloud and have few traditional enterprise management needs can go to any cloud. Front end web servers are a great example – static data, built to horizontally scale, and no backup requirements. VMware’s challenge going forward will be to differentiate. If VMware is the “enterprise alternative” to Amazon, it better launch it’s IaaS solution with enterprise features (AWS isn’t perfect but it has tons of features that large enterprises are now taking for granted). Redundant data centers, enterprise storage, networking, backup, and security are a must. In addition, it must offer serious tools for developers; the time for VMware to show the results of its investment in Puppet Labs should be when the public IaaS offering launches. Otherwise, Amazon and other providers will continue to win on features and the ease of experience that developers have...

Read More