back to article VMware: More revenue now from services than software

Server virtualization juggernaut VMware wasn't resting on its hypervisor laurels in the second quarter, but it certainly did benefit on the uptake and renewal of services on already installed sales to meet its revenue growth targets. Last week, VMware pre-announced rudimentary results for the quarter ended in June during its …


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There is little benefit to VM's especiaLly if you consider a well cultivated IT staff. Unless you are awfully tiny or terribly huge there is no business gain to letting the sweaty neckberds work from home & only limited gain for telework staff that doesn't get much accomplished anyway.

But EMCS will fix it all for just $180 per seat annual + $60hr support per call + two year commit? EMC2 makes my stomach turn everytime my driver takes me by one of their hugely branded buildings.

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Re: Surprise!

What about application isolation, hardware independence, resource optimization ? Coupled with software automation from another vendor which can move/start/stop vm's on demand automatically, when required.

What do vm's have to do with telework anyway? I don't get it. Don't you use VPN ?

As for "there is no business gain to letting the sweaty neckberds work from home & only limited gain for telework staff that doesn't get much accomplished anyway." that depends on the person. I do telework and it does take self-discipline - but I am more productive from home than in the office! I do not have hordes of idiots around my desk asking silly questions, I start earlier and finish later ... why? because the missus works same hours as me plus traffic and long lunch break ...


Falling asleep at the network switch.

With everybody else falling asleep at the network switch, VMware and Nicira have cornered the virtual server market and thus became indispensable to cloud-based services.

But up to now these two had at least each other to compete with. This has assured both strong development in virtual controllers and servers as well as fair pricing.

Now, however, these two about to become one and the same entity. With everybody else lagging far behind, they will be able to not only monopolize the virtual server market, but also annihilate the old hardware-based switches from Cisco and company.

"So what," you say. "Survival of the fittest."

Not so fast.

With the Cisco hardware obsolescence will come a dependency on virtual controllers and servers. This is not bad in itself since these streamline the setting up and maintenance of networks.

But it can be bad if the virtual controllers and servers take hold at the exclusion of everything else.

Aside from the inherent monopoly in this, we will thus also have a dependency on a networking platform -- which though efficient, economical, and ingenious -- has nonetheless not been around long enough to warrant a complete reliance on it.

A go-slow approach, therefore, might be in order and the Justice Department perhaps ought to look at all the ramifications before it gives its blessing to VMware to buy Nicira.

Besides, the two companies have already worked out the necessary protocol to coexist in networks -- without being the same entity.

Staying that way might be better for all of us for the time being.

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