VMWare Cloud Computing: VCloud Express

VMWare vCloud Express [Virtualization] [Migration] [IaaS]

VMware has stated its intention to move up the stack and provide a platform. And here they are.
----Forrester analyst John Rymer, commenting on the acquisition of SpringSource

As you probably know, VMWare offers data center management and virtualization tools. They are evolving to introduce cloud offerings. VMWare is owned by EMC.

According to VMWare, the cloud era will require a new technology stack and redefine the role of the operating system: in a cloud environment, the operating system no longer has the responsibility to manage the hardware; this capability is now the remit of the hypervisor. The other key role of the operating system has been to coordinate the applications, a function now provided by application development platforms. Thus, the operating system will become less significant to the function of IT service delivery.

The base layer in the new cloud era is cloud infrastructure and management. VMware recognizes that for infrastructure-as-a-service (IaaS) to be delivered and consumed quickly and easily, it must have a comprehensive management automation capability. Many vendors have solutions to provide these functions, but VMware has the advantage with vCentre.

The second layer is cloud application development platforms to enable developers to write applications that execute on any infrastructure. VMware provides its vFabric platform, which works with SpringSource-based Java applications for its infrastructure.

The third layer is remote end-user access from virtual devices. The capability required here is for IT to manage the rules by which users, location, and device access are governed.

VMWare offers a cloud OS called vSphere and an Infrastructure as a Service (IaaS) offering called vCloudExpress.

vSphere is designed to manage an enterprise data center as an internal cloud although AT&T, SAVVIS, Terremark and Verizon Business also use it to deliver cloud services.

vCloudExpress is designed for developers to address various infrastructure and programming needs such as experimentation, prototyping and testing. It is delivered by leading cloud service provider partners Terremark, Bluelock, Hosting.com, and MelbourneIT. VMWare also owns 5% of Terremark.

VMWare acquired SpringSource in Q3, 2009 for $420 million to integrate their virtualization framework layer with a leading application framework layer. VMWare plans to allow developers to produce Java-in-the-cloud applications. Whether they can dominate the market is a question of more hype than substance as only 47.5% of server-side Java developers use Spring with the majority of the rest using EJBs. IBM Websphere's Savio Rodriguez continues, "SpringSource is estimated to have driven $20 million in revenue, or maybe bookings, mainly from professional services. This is a very respectable base for a company with 150 employees. IDC, however, estimated the 2008 Application Server market at nearly $3.8 billion. While the Spring Framework is widely used, SpringSource has not been able to extract significant market share as a result."

VMWare's Q3 2009 balance sheet is sound with over $1 billion more tangible assets than liabilities. However, revenue shrunk by 10-15% from 2008.