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5 things VMware must do to fend off Microsoft

Jon Brodkin | March 2, 2010
The industry's biggest x86 virtualization vendor is facing a strong challenge from Microsoft, which is enticing IT executives with Hyper-V, an alternative that may not be quite as sophisticated as VMware but is less expensive.

VMware's marketing also focuses heavily on its "vCloud" program, which seeks to build a lineup of partners that offer cloud computing services based on the VMware hypervisor.

By pushing public cloud services -- that is, on-demand computing services delivered to customers from remote data centers -- VMware risks losing sight of its core goal of helping customers build out their internal data centers, Wolf says.

"They've spent a lot of time harping on the public cloud, but the typical organization today is building out a private cloud and looking at IT automation internally, as opposed to putting corporate assets on the Internet," Wolf says.

DiDio adds that "I don't think there will be this stampede to the cloud. However, there are a lot of organizations looking at implementing private clouds. Clearly, cloud computing and virtualization go hand in hand. Anything VMware can do to help train customers and send out an explicit message helps."

Balkansky says VMware is trying to help customers build internal cloud networks that connect seamlessly to public clouds, but says VMware is still making the private data center its main focus.

"We haven't taken our eye off the ball by any means," Balkansky says. "First and foremost, our goal is to help customers build a private cloud."


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