Getting Ready for VMWorld 2017: New Rules for a New Game

Register Today for the Upcoming VMworld Webinar – Thursday, August 24th @ 10am PST

VMWorld is the pinnacle event for many in the virtualization community to showcase new technologies, release new products, and weigh in on the direction of the industry. This year will be no exception.


With VMware expecting to shed more light on their VMware Cloud strategy and publicly make some form of announcements in the summer of 2017, many industry insiders are ramping up their investment in VMware driving the stocks up 9% in Q1 and raising forecasts for Q2 and Q3. This is all good news for VMware, but what does it mean to the consumer looking at a cloud strategy in 2017– and beyond?

Today, businesses have a multitude of options for where their workloads run. On-premise IT has traditionally been the winner given its ability to keep content secure and confidential while providing physical access to resources. Then, along came co-location and outsourcing; moving IT to large, shared data centers. We took the workload out of the office and moved it to a larger environment where all of the workloads could exist near one another. Then, with virtualization, the idea of the “Cloud” started to take shape and public cloud-hosting allowed for single workloads to be isolated from the primary datacenter, but gain the benefits of cloud computing, elasticity, and lower operational costs. The introduction of public clouds then brought instance-based computing, which quickly grew, and entire organizations now exist solely in instance-based models hosted at the likes of Amazon Web Services and Microsoft Azure.

But, there was a hidden cost with instance-based computing that many who ran efficient data centers recognized. Oversubscription saves money, and you can’t oversubscribe a compute instance. When you purchase an instance to run your workload, the only party who benefits from oversubscription is the cloud provider. The end-user still pays the same for every resource, whether it is idle or whether it is consuming 100% of its resources. This meant that an efficient data center could often cost less than most instance-based clouds.

The calculations needed to justify the migration to the cloud are complex, but instance-based pricing was easy. If I know how big my VM is, I know how much my VM costs. The same was true for on-premise IT. Since I know what hardware I purchased and how much it costs to support, I can easily derive the cost per workload on premises.

VMware is, however, introducing a new competitor into to the cloud-calculator business model, with VMware Cloud™ on AWS, which is based on running VMware vSphere on dedicated physical hosts in the cloud. This has the potential to provide dedicated hardware, combined with cloud-based benefits. To find the sweet spot for density and costs, you now need to dig deeper than the cost per host and focus on the ideal density and placement of workloads on clusters.  This new model will be the game changer for efficient companies looking to maximize VMware Cloud on AWS and their own data centers.

What resources impact my cost the most? What workload reasonably fits in the VMware Cloud on AWS cloud model? Will I save money? These and many more questions pop into our heads and we think there is answer to them all!

To be continued….

Register Today for the Upcoming VMworld Webinar – Thursday, August 24th @ 10am PST