VMware Unveils Private Cloud Innovations and Addresses Ecosystem Challenges at VMware Explore 2024

VMware private cloud streamlines IT with simplicity and integration - SiliconANGLE

VMware private cloud strategy: theCUBE's analysis on simplifying digital transformation As businesses navigate the challenges of digital transformation, the demand for solutions that are both scalable and secure has never been higher. The VMware private cloud has become a vital element of IT strategy, highlighting the need for simplicity and seamless integration in today's complex digital environments. VMware LLC's focus on private cloud solutions signals a notable shift in IT leadership priorities, moving away from reliance on public cloud services and toward more controlled and efficient operations. This trend reflects a growing industry-wide commitment to developing durable, integrated cloud environments that meet the evolving needs of modern enterprises. "This is IT, sustainability, the data modeling, developer pipelining, not just stacking up the gear. It's not trivial," said John Furrier (pictured, left), executive analyst at theCUBE Research. "I think hybrid is the formula, but they're not wrong -- private cloud needs to be there." Furrier spoke with theCUBE Research's Rob Strechay (center), principal analyst, and Dave Vellante (right), chief analyst, at VMware Explore, during an exclusive broadcast on theCUBE, SiliconANGLE Media's livestreaming studio. They discussed VMware's strategic shift after its acquisition by Broadcom. Its strategy includes prioritizing private cloud solutions, emphasizing simplicity and integration, as the company moves away from reliance on public cloud services to meet the growing demand for scalable, secure and cost-effective IT operations. VMware's leadership is steering the company away from its past tendencies to chase after every new technological trend. The event keynote emphasized a renewed focus on the core competencies of VMware, particularly the private cloud. With the public cloud sector dominated by industry giants, such as Amazon Web Services Inc., Google Cloud Platform and Microsoft Azure, VMware is positioning itself as the safe, trusted alternative for enterprises seeking greater control over their IT environments. "They really don't have IT data strategy, so, that's lacking," Vellante said. "But at the end of the day, they've got simple, safe cost-effective, trusted infrastructure, and I think that's going to resonate with a lot of customers." This strategic shift is a response to the growing feedback from VMware's customers, who have expressed concerns about the cost, complexity and control issues associated with public cloud solutions. The decision to streamline VMware's product offerings -- from 8,000 SKUs down to just four -- illustrates a commitment to reducing the clutter and focusing on what truly adds value to customers. By emphasizing simplicity and integration, VMware aims to make its solutions more user-friendly and aligned with the needs of modern enterprises. "Being focused down deep into the integration and bringing it all the simplicity aspect, I think they are there with the simplicity aspect," Strechay said. "I think they've really taken that seriously in the last six months since the acquisition really closed, and they've really put engineering behind it, which is exactly what Hock [Tan] said he was going to do. They're going to focus on the next 10 years of sustainability within the VMware ecosystem." The transition under Broadcom's ownership brings its own set of hurdles, including navigating customer concerns over potential price increases and ensuring that VMware's vision for the future is effectively communicated and executed. Despite these challenges, the overarching sentiment from the analysis is one of cautious optimism. "I think getting closer to the edge and getting closer to the customers with AI makes total sense," Strechay said. "I think leaning into where there's a lot of green field or for them to go with AI makes total sense as well. I think edge is definitely a big message coming out of today, and I think that's a place they could win." Here's the complete video interview, part of SiliconANGLE's and theCUBE Research's coverage of VMware Explore:

VMware ecosystem challenges and strategic shifts - SiliconANGLE

The CUBE Pod analysis: Navigating VMware ecosystem challenges and strategic shifts at VMware Explore There are several interesting power dynamics currently at play in the industry, particularly around VMware ecosystem challenges. This year's VMware Explore event has been marked by the intersection of emerging technologies, such as generative AI and shifting strategies among industry giants. This year's VMware Explore looks very different compared to years past. It's sparsely populated, but it represents the tip of the pyramid, according to Dave Vellante (pictured, right), chief analyst at theCUBE Research. "The customers that I've talked to here are all investing in VCF. They're sort of what I would call the all-in or mostly-in customers that, basically, are running mission-critical applications on VMware," Vellante said. "The vibe is completely different." Vellante spoke with John Furrier (left), executive analyst at theCUBE Research at VMware Explore, during a CUBE podcast analysis on theCUBE, SiliconANGLE Media's livestreaming studio. They discussed the evolving tech industry landscape and the developing strategy tied to VMware ecosystem challenges. The focus at VMware Explore this year has shifted significantly, with analysts closely monitoring the high-stakes environment around VMware ecosystem challenges. There's so much risk-reward opportunity on the table of VMware right now, according to Furrier. "VMware runs in a majority of the enterprises out there, IT departments. There's so much built around it, jobs, people make money from it," he said. "There's software developers, there's ecosystems. So, whether you're just a person who has a job, if that goes away, you're out of a job." Those reasons are why the stakes at play at the most watched piece of the show this year, according to Furrier. That brings with it important questions tied to VMware ecosystem challenges. "What will happen with the ecosystem? Are people going to switch? What's the deal with the licenses? Is VCF ready, is it truly a great platform? Can it sustain another run of durable value creation in the IT world?" Furrier said. "I'm telling you right now, that's all everyone's talking about." There is a reduced presence of ecosystem players at this year's VMware Explore, which could represent an emotional backlash from those who didn't make the cut, according to Vellante. That may be a missed opportunity, but there is an additional opportunity at play too. "To me, it's an opportunity, because Broadcom is setting a high umbrella on margins and pricing, and most of these services companies, these partners, they're operating on much thinner margins," Vellante said. "Even a company like Dell, its operating margins is in single digits. And take Nutanix, their operating margins are virtually nonexistent. So, it's an opportunity for them to actually partner, however that partnership evolves, with Broadcom to pick up the slack that Broadcom is less interested in." The tech industry is closely watching Nvidia Corp. this week, with the company's upcoming earnings due Wednesday. Nvidia could be a $200 billion company entering the end of this decade, according to Vellante. "I still like the Nvidia thesis, the long-term thesis. I know everybody's coming after them. I know there's a lot of talk about inference, but ... training and inference go together," Vellante said. "I think Nvidia has a lead that is maybe not insurmountable, but I think it's sustainable for at least five, potentially 10 years." The only thing that could hurt Nvidia right now is themselves, according to Furrier. Right now, their lead is huge. "They're still a chip company, they're still priced by the chip, but their value's software. As long as there's no major 'world event,' force majeure, something bad happens to Nvidia, things blow up, allocation happens on the hardware side, they got this," Furrier said. As CrowdStrike navigates a turbulent period, all eyes are on CEO George Kurtz's upcoming strategy. Recent ETR data very clearly indicates that customers are still in negotiations, according to Vellante. "We know Delta Air Lines is going to try to get a pound of flesh. All that is going to cause, I think, a CrowdStrike reset," Vellante said. "I think you got to wait for that and maybe look for opportunities to jump in after that." It's important to not try and catch a falling knife, according to Furrier. There is likely to be a reset in the months ahead. "I mean, they're going to have to take their medicine. I think their product leadership is just too good and they don't go away," Furrier said. Here's the complete video interview, part of SiliconANGLE's and theCUBE Research's coverage of VMware Explore: