VMware sells off vCloud Air to OVH

Hmm…. so that was an interesting announcement from VMware last week!….. although if I’m honest it makes perfect sense!

OVH Group announcing it’s intent to acquire the vCloud Air Business from VMware: https://www.vmware.com/radius/vmware-cloud-air-evolves/

Last year when VMware announced their tie up with AWS – vCloud on AWS – many had already started wondering what that partnership would do to VMware’s own cloud offering. The talking point was made more real when VMware also announced their Cross-Cloud Architecture which would allow a customer to choose which cloud platform to deploy their workloads onto – all from a single common operating environment. Then to make things worse, VMware announced VMware Cloud Foundation on IBM Cloud (or what was Softlayer)… an SDDC stack running VMware goodies on IBM Cloud compute!

That triple whammy pretty much made everyone think that vCloud Air’s time was up!!

I had a number of discussions at VMworld Europe last year where we talked about whether VMware would just shut down vCloud Air, or would they migrate it all onto AWS. Although the general consensus was that maybe they would sell off/spin off that part of their business – after all, VMware is a software business and vCloud Air was always seen as a ‘weird’ sibling…. not to mention that it competed against all it’s vCAN (VSPP) partners who were offering their own cloud services built on VMware technology!

I guess there’s no shame in what VMware are doing, Cisco, Dell and HP tried and failed to do what Amazon and Google are doing well at… although surprisingly Microsoft have managed to get Azure up and running well!

In a way, VMware are getting rid of what they probably saw as a hefty investment on infrastructure and hosting for little returns (I doubt there were many customers using vCloud Air to justify the expense of keeping it). Makes more sense to sell it to an existing cloud provider who knows how to sell Public Cloud services and IaaS! Although, I kind of have to wonder what OVH will do given VMware hosted vCloud Air in Equinix/Telstra data centres around the world….. guessing they’ll run down the contract with those providers and bring it all back in house!

In my opinion, selling off vCloud Air is probably a smart move….. VMware’s vision is to enable a customer to run “Any Application on Any Cloud, accessed by Any Device”, and it was going to be difficult to be Cloud-Agnostic if they owned a Public Cloud service! The whole Cross-Cloud Architecture would have produced a conflict of interest if they kept vCloud Air…. now that they’re shot of it, they can concentrate on pushing out their vCloud stack onto Azure and maybe even GCP given that they’re well on their way with the AWS partnership. Why try and beat them at their own game? It’s far easier to embrace them and partner!!

VMware are positioning themselves to be the broker of cloud services…. a single management point that allows end users to decide which public cloud is best for their workloads! In a way it’s a clever move, firstly because it puts the decision-making back with the end user, and secondly it now means that VMware can state that it’s the only virtualisation company that doesn’t tie you into a single cloud vendor (much like how Microsoft tries to ram Azure down the throat of Hyper-V customers).

Interesting times ahead……

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