|By Greg Schulz||
|March 16, 2013 09:00 AM EDT||
Is this a pivotal moment for both EMC and VMware signaling that they will be going head to head (via their new initiative based company) with Amazon Web Services (AWS), Microsoft Azure, HP Cloud services, Rackspace and a long list of others?
Part of the answer to that question would be based on what is meant by going head to head, and which aspects of those services. For Cloud Platform as a Service (PaaS) along with big data analytics related I would say yes. In terms of other Cloud AaaS or SaaS or IaaS probably not as much so at this time.
On the surface Pivotal appears to at least initially be more of a Platform as a Service (PaaS) play vs. Software as a Service (SaaS) or Application as a Service (AaaS) or Infrastructure as a Service (IaaS) play. Thus it will be interesting to see how Pivotal pivots and evolves into other directions beyond first cloud and big data applications development assistance.
This will not be the first initiative or company jointly formed with VMware following on the heals of VCE that also includes Cisco and Intel as partners.
Pivotal will be headed up by Paul Maritz who has been EMC Chief Strategist and formerly CEO of VMware as well as having spent time at Microsoft. EMC will have 69% ownership with VMware having the balance, it is estimated that about $400 Million US dollars will need to be invested.
The new company or initiative is slated to launch on or about April 1, 2013 (April Fools day) with target 2013 revenues of about $300 Million. Projections are for an annual revenue of around $1 Billion in five years. That revenue will come from the existing assets and business being brought together along with probably some net new business. Doing some quick back of the napkin based math shows an average straight line growth of about 36% over five years.
VMware intellectual property and assets contributed:
Thus is this a Pivotal move signaling the entry into new areas that could further disrupt and cloud that status of VMware and EMC as technology suppliers?
Or this clear the clouds a bit to bring clarity to what EMC and VMware are doing along with leveraging various acquisitions?
By clarity, this in theory should help place both EMC and VMware with their customer, partners and prospects as technology (along with associated services) supplier (what some refer to as arms merchants) vs. competing with those entities.
IMHO this is pivotal in that it helps to bring clarity for some of the different technologies and business that EMC and VMware has acquired. That clarity will help its own sales teams along with partners avoid creation of revenue prevention teams impacting sales of other solutions.
Likewise there should be good synergy around the various tools, technology and offerings around big data, little data and application development with pivotal. That synergy is a combination of tools, technologies, development techniques. The combination of the tools and new techniques should enable customers to leverage new technologies in new ways, vs. trying to use and deploy in old ways.
Btw, anybody notice Mozy or the lack of that mention keeping in mind that technology was brought back into the EMC backup group fold, while still being operated as a service. Also keep in mind that Mozy was bought by EMC and then transferred to VMware a couple of years ago.
Ok, nuff said (for now).
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