VMware requires enterprise customers to continue to use vsphere and renew their enterprise license agreement. Because VMware does not sell hardware, it relies on revenue from licensing, support, and services. That's why you work with AWS. Based on the cooperation agreement, AWS will provide hardware, and VMware will provide software, support, and services.
2016, one thing you can't imagine: VMware announces service in Amazon Web Services (AWS) data center.
This new transaction allows users to rent vsphere clusters within the AWS Data center and place legacy applications with cloud-native applications. The news is a bit surprising, because VMware and AWS seem to be the opposite of two extremes. Why are industry-leading local, traditional platforms working with innovative public cloud companies?
From a business perspective, this collaboration is perfectly justified: VMware and AWS have a lot of overlapping customers, but the services they offer are virtually non-overlapping. Vsphere is built on top of AWS to fill this gap. Of course, the question is, who will benefit the most from this collaboration: VMware, AWS, or their users? Plate surface
VMware protects its revenue streams
It's not a secret that VMware has been working on the public cloud business. VCloud director did not ignite the world, and VMware recently sold its VCloud air public cloud. VMware is not struggling with itself it seems to be taking the "if you can't beat them, join them" approach. VMware recognizes that hybrid cloud will be the dominant computing model for the next few years, while AWS leads the public cloud market. This partnership with AWS allows VMware to remain the primary platform for the enterprise as it moves to a hybrid cloud.
VMware requires enterprise customers to continue to use vsphere and renew their enterprise license agreement. Because VMware does not sell hardware, it relies on revenue from licensing, support, and services. That's why you work with AWS. Based on the cooperation agreement, AWS will provide hardware, and VMware will provide software, support, and services. It is assumed that AWS will collect hardware charges from VMware in the background. VMware is still responsible for all vsphere billing, which means that the company will protect its existing vsphere revenue.
Easily turn legacy apps to AWS
One disadvantage of the AWS Cloud is the need for users to change how it works so that it can be used effectively. Typically, users must develop apps to use AWS services, and this deployment pattern seems unlikely to change. In addition, many standard enterprise applications are deployed on AWS. In contrast, legacy applications deploy different architectures on-premises and require a lot of effort to adapt the design of the application to fit AWS. For many organizations, this effort, time, and cost outweigh the benefits of using the public cloud for new applications.
Running vsphere on AWS allows organizations to focus on delivering cloud-native application services. Organizations can continue to run legacy apps, do not need to change, and of course they can migrate these apps to AWS without additional time, effort, and cost. AWS's vsphere inspires users to use AWS because it provides a new springboard to use cloud-native services to develop new AWS applications.
Classic Hosting Scenarios
The beauty of vsphere is that software runs in a virtual machine without modification. Vsphere on AWS allows customers to run the exact same software in the AWS Cloud, just as if they were internally. This is the only way to migrate to the AWS Cloud. Many businesses do not want to run data center or server hardware because it requires them to rewrite or refactor software.
Vsphere on AWS is a typical hosted scenario that allows organizations to run existing applications and architectures in public cloud datacenters-including legacy applications that have not been modified. This means that customers can gain the agility and ease of use of the public cloud without the need for two of costs. They can also use cloud-native tools to develop new features and retain core data in legacy applications. If the price is correct, then the customer will gain a huge gain in this transaction.
Vcan supplier will be gone
Not everyone will benefit from the collaboration between VMware and AWS. VCloud Air Network (vcan) service providers and their customers will lose a lot of interest. These are smaller cloud service providers competing with AWS, but Vsphere is used in their public cloud services. Now that VMware is improving its competitiveness, the future of Vcan seems a bit bleak. If I am a vcan provider, I will look for an alternative cloud platform that gives you more control. If I am a Vcan customer, I will communicate with my suppliers and consider moving to vsphere on AWS.
Vsphere on top of AWS: VMware wants to regain public cloud capabilities