Gregory Ness

Long only, growth
Gregory Ness
Long only, growth
Contributor since: 2007
Company: CloudVelocity
VMware lowers guidance:
"The company confirmed reports of layoffs, saying it had eliminated about 800 jobs mostly in its vCloud Air division, which offers cloud computing services that compete with Amazon Web Services and Microsoft Azure. It will record restructuring charges of between $55 million and $65 million connected with the cuts.
It also said that CFO and COO Jonathan Chadwick is leaving the company. He’ll be replaced by Zane Rowe, the CFO of VMware’s majority owner, EMC, effective March 1. Rowe was previously the CFO of Continental Airlines and before that led North American sales for Apple. A new COO was not named."
Why Your Private Cloud Will Fail (from May):
Gartner attacks VM sprawl:
I'm driving my last oil/gas auto whether oil goes up or down. Convenience of plug-in is key factor... and simpler maintenance.
VMware CTO departure:
Fortune on recent VMW exec churn:
James Staten's excellent perspective on private clouds:
James Staten's excellent commentary on private clouds:
I think proof will require more than 1 quarter. The cloud is a steamroller. Likely 4-12 quarters... see VMware and the Cloud Era...
VMware throws 1/3 of IT under the bus to make case for their cloud: Reminds me of the ill-fated service provider announcement of 2+ years ago.... Microsoft/IBM put the squeeze on VMware (Barrons).
NetworkWorld: 5 Things we learned about Amazon’s cloud from its first earnings report
AWS collected $1.56 billion in revenue with a $265 million profit this quarter
Amazon's cloud revenue is bigger than its four closest competitors combined
"While Salesforce, Microsoft, IBM, and Google can all claim leadership in some parts of the cloud market, Amazon has the greatest overall revenue specifically from cloud infrastructure services."
Amazon's cloud business now $1.6B per quarter:
Acquisitions are particularly challenging for large, complex companies. You have internal teams with competing interests, some of whom won't share the company's long term interests. You need strong leadership invested in the future to make it work.
Thanks! G
Related article:
Amazon and VMware on collision course (InformationWeek): Cloud migration skills lacking per recent survey..
VMW is the ticker symbol. It is publicly traded. You can look up major shareholders via Seeking ALpha. Palo Alto....
The speed at which one can move a workload from premise or cloud to cloud will become more important than the price of a service provider's offering... dude. :) AWS exec... its all about agility, not price...
See video at about 5 minute mark. The discussion regarding who will win the cloud war: Very relevant to VMware's acquisition mentioned above
Timely: VMware Acquires Professional Services Firm To Boost Cloud Migration, DevOps Expertise
A 30% savings is massive... they can get servers designed to specs aligned with their data centers... high energy efficiency... razor thin margins for data center developers... in short, they have the market power to extract more from suppliers....
They probably get servers at 30%+ discount to most businesses. When you look at IT costs there is hardware, software, power, security, licenses, etc. Beyond the cost/ROI discussion there is the agility enabled by robust APIs that enable agility... the ability to use AWS in pilot light mode for disaster recovery, for example, instead of buying, powering a secondary data center 24/7... etc. See
Thanks all for your comments and additions to the conversation. G
FB and ZYNGA both started on AWS and migrated away as their production app environments grew. Zynga may have returned to AWS for early games. My point was that AWS is a great starting point for a service or game environment AND other unpredictable workloads. As costs drop it becomes less expensive for larger and larger predictable environments. The payoff, howevere, is often agility... the ability to deploy services/apps faster thanks to robust APIs.
To the point you are making about not all IaaS offerings being alike... and the need to re-architect an app for AWS, etc.... we have seen performance improvements for some who have moved from a private cloud environment into AWS (new servers versus overburdened premise cloud).
If migration costs drop (as I'm sure they will)... it will be easier to simply test an app on AWS rather than speculate as to what will need to be re-architected, etc.
yx: AWS is quite competitive for apps with unpredictable workloads. Just ask Facebook, Zynga and many others that used AWS to launch their services/games, etc versus building out racks of servers and switches. If you compare the cost of powering/running a data center for disaster recovery for example, it is more than 50% cheaper to use AWS during tests and outages. Even in the case of predicatable workloads, AWS can be cheaper. In many cases it is more agile.
AWS is a massive, seasoned infrastructure with robust APIs and new database capabilities. Yes, the software companies will try to structure licenses to slow adoption. It will be the typical shortsighted move that will set the stage for a new round of startups.