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VMware charges into public cloud IaaS fray as Dell exits

Dell will discontinue its OpenStack and VMware vCloud-based public cloud offerings as VMware delivers its vCloud IaaS.

Dell discontinued its OpenStack and VMware vCloud-based public cloud in favor of products from other partners just...

as VMware opened its public cloud offering this week. Dell said it would focus on multi-cloud management through its Enstratius acquisition.

Instead of investing in its own public cloud services, Dell Inc. now offers VMware public cloud, as well as other platforms, through its partner program. It also delivers private cloud and other cloud offerings built on VMware, the company said.

The concern here is really more about Dell and its ability to innovate and understand the cloud market.

James Staten, an analyst for Forrester Research, Inc.

Dell had struggled to compete in the public cloud market in recent years. Some thought that the company's move to go private recently could have helped it develop a more cohesive cloud strategy.

Despite the timing of the two announcements, James Staten, an analyst for Cambridge, Mass.-based Forrester Research, Inc., said he doesn't see Dell as a cautionary tale for VMware and other companies looking to get in on the public cloud game -- nor will it strongly affect the OpenStack Foundation.

"The concern here is really more about Dell and its ability to innovate and understand the cloud market," Staten said.

VMware vCloud Hybrid Service

Meanwhile, VMware demonstrated its vCloud Hybrid Service, launched an early access program and said its new service will be generally available in the third quarter. 

The beta of the service became available in March, but it wasn't until this week that VMware divulged details and pricing. Now, VMware offers what it calls a "production-ready platform" for invitation-only early access. The vCloud Hybrid Service will be generally available in the third quarter.

Though vCloud customers are sure to evaluate the service, VMware is somewhat tardy to the public cloud party, and that may impact adoption.

"We use virtual private cloud services from other service providers anyway, but I'm not sure what the benefit is of getting it from VMware yet," said Kirk Bellmore, VMware systems engineer for a higher education institution in San Diego.

Users already in the beta said earlier bugs that caused failures and timeouts on uploads to and from the cloud environment and other issues have been largely resolved.

VMware public cloud versions, pricing

VMware's Hybrid Service will be offered in two versions: dedicated cloud and virtual private cloud at prices that are competitive with Amazon Web Services (AWS).

vCloud Hybrid Service dedicated cloud will offer physically isolated and reserved compute resources, and it will be sold on an annual term with prices starting at 13 cents per hour. The vCloud Hybrid Service virtual private cloud will be offered as a multitenant compute resource, with dedicated allocations for some customers, and sold on a monthly term with prices starting at 4.5 cents per hour.

These offerings are roughly analogous to AWS virtual private cloud and on-demand resources. By comparison, AWS charges a VPN connection fee of 5 cents per hour over regular Elastic Compute Cloud (EC2) pricing for virtual private cloud, and EC2 prices start at 6 cents per hour.

The vCloud Hybrid Service will also include automated replication, monitoring and high availability for business-critical applications based on vSphere vMotion, High Availability (HA) and Distributed Resources Scheduler. There will be no additional charge for these services, load balancers or firewalls; users will be charged for compute, storage, bandwidth, public IP addressing and support.

Built-in HA is a differentiator in the Infrastructure as a Service (IaaS) market, which has typically offered ephemeral instances a la Amazon, according Staten.

"Platform as a Service offers HA by default, but most Infrastructure as a Service vendors don't," he said.

Though VMware has positioned vCloud Hybrid Service as a way to develop new applications, Staten said it's more likely to appeal to operations people already familiar with VMware than software developers.

 

Beth Pariseau is senior news writer for SearchCloudComputing.com. Write to her at bpariseau@techtarget.com or follow @PariseauTT on Twitter.

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Be interesting to sample VMWares take on IaaS
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Will you try the VMware vCloud Hybrid Service?
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Already hosted on AWS, other business priorities are higher
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I’d like to see its effectiveness, assess security and access procedures.
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Worth trying, but not sure how mature their ops team is vs. Amazon’s in terms of assuring rock solid availability.
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As a VMware reseller it’s natural to extend my customer offerings to include vCloud.
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We are at the beginning of our Hybrid Cloud testing, so the timing makes sense. We’re mostly a VMware shop, so we naturally want to test it.
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We run a lot of Vmware systems, integration is very important as a time saving component, so will definitely be reviewing it.
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We run most of our products on vmware. it makes deployment easy
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i use vmware in my data center. no brainer
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I’ll try it to better understand its practical uses.
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Just to want to get know how the product is and what and all possible with this.
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not expected to be available in new zealand – which seems silly given the ease of transporting the design internationally and the wide adoption of enterprise scale vmware here.
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too expensive
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If the price is right and proper security in place, we’ll try it.
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too many other options, too little time
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There is nothing wrong in trying a product when we want to provide the best solution to our customers.
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Extremely useful and practical.
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it looks like a logical integration.
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Looks to be very scale able, with more functionality than competitors at a competitive price.
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I am concerned that VMware will follow similar policy to the virt products, drawing us in with attractive pricing initially, until we are so committed that we cannot exit when they introduce incremental price increases.
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Looks like a good offering. Both private and public variants at one place.

-Bikash
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Need to evaluate how it fits to our solution.

-Bikash
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Its pricing pattern is looking attractive
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I am already using Amazon EC2 and would be more likely to try Google's cloud offering. I am not sure what VMware brings to the table.
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vmware has no experience in cloud and is just (desperately) trying to follow the Citrix lead.
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We already have a private cloud we have created in a Tier 4 data center. SLA's are highly critical to our client base, and neither this offering or AWS can meet our needs at this time.
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I respect VMWare as a company and will try it out for that reason (provided it makes $$ sense)
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Looking at AWS at this time, and want to see what VMware Cloud has to offer
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hybrid cloud computing is the enterprise architecture for today, and thus a public VMware cloud is good.
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Our focus is on the SMB, and I'm not entirely sure their offering will be competitive in this market.
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I like the flexibility to have my applications run without the mess of managing the hardware
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they are leaders
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Open to trying it out, but must read the terms
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I am in to the idea of cloud due to its concept of "not owning" any IT infrastructure. This can cut down the cost of maintaining crew of IT staff....
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I like the fact that all the extras (HA, load balancing, etc) are included in the low base price mentioned in the article (0.13/hr)... but... I can't find any pricing info on the VMWare website. I guess I need to speak with a salesperson to get these details. Too bad. I probably won't do it.
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it is not cross platform. Does not support multiple hypervisors. It is too risky to put all my workloads in one basket.
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Its the best of both worlds
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Most of the people known virtualization by the VMware... So as per my experience i was already used Hybrid Cloud Service for my Company IaaS infrastructure.
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Consistent platform across private/public is a compelling story, particularly if pricing is competitive with AWS.
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it's the way forward
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Potentially saves us having a second data centre
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I saw in another article that they will be utilizing Puppet as part of this offering anyone have any info on that?
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hoping it provides portability between private and public offering
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I have been preaching HYBRID snice Cloud first became a Computing term.
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i'm a developer, VASA, VAAI, plugins. I have all the cloud I want right here in the lab
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VMware is the leader of virtualization and cloud tech.
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They don't have the experience of others, such as Amazon and Rackspace in hosting others' data. Just because they have software that enables "cloud" service doesn't imply they know how to run public cloud.
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