EMC announced during it’s quarterly results that it was taking a larger position in VCE. VCE was always an EMC asset, co-operation with partners Cisco, Intel and VMware has never been strong and this simply closes out the current chapter.
The end result positions EMC to also be a “IBM style” company with a full spectrum portfolio for private cloud solutions.
- staff use operational resources and tools from EMC today such as IT(Laptops, phone) and accounting (expenses, sales etc)
- Payroll is run by EMC
- most of the internal product focus was on EMC products and customers.
- no change to day-to-day operations
Competitors not Friends
- Cisco & EMC are competing head to head for control of customer accounts today.
- its personal at CEO level. John Chambers has made it clear that EMC/Nicira/VMware acquisition was a breach of trust.
- Latest Cisco UCS servers look well suited to a software-only distributed storage product, putting further competitive pressure on the relationship.
Who Makes The Profit ?
- EMC is rumoured to take 70% of the profit out of any deal
- VMware doesn’t see much revenue. At least not significant enough to be listed in the quarterly reports.
- the certainty of who really owns VCE will reassure customers.
- some people highlight that whitebox/OEM has strong support in very large accounts, the same customers who are VCE target accounts today.
- plenty of customers will find value in VCE.
- No better or worse off overall.
Onoing Business Issues
- have heard rumours of legal tussles between the partners for some time based on increasing cash requirements to fund the growth of VCE.
EMC & OpenStack
- acquired CloudScaling a few months back.
- although it might have been a distress sale because OpenStack is not generating much revenue today.
- Having VCE in the so-called federation provides scope for an integrated OpenStack platform to compete against Cisco’s Metacloud and others.