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Tech titans unite for private cloud push

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By Jennifer Kavur | Nov 9, 2009

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Cisco Systems Inc., EMC Corp. and VMware Inc. have formed a coalition to accelerate data centre virtualization and the transition to private clouds. The CEOs of the three companies announced the Virtual Computing Environment (VCE) coalition in a Webcast last week.

"I think you'll look back five years from now and say this was the most major change in terms of the future of data centres, private clouds, pervasive virtualization that was made during a decade," said John Chambers, CEO of Cisco.

The companies involved have "worked closely over the past year on a shared vision for the future of enterprise IT infrastructure -- private cloud computing," states a Cisco press release.

Cisco defines a private cloud as "a virtual IT infrastructure that is securely controlled and operated solely for one organization. It can be managed either by that organization or a third party, and it can exist on or off premises or in combination."

The coalition introduced its basic infrastructure technology, called a Vblock, which consists of networking and computing from Cisco, storage, security and management from EMC, and virtualization from VMware using the data centre operating system vSphere.

Vblock architecture relies heavily on Intel Xeon processors and data centre technology, states Cisco.

Three Vblock Infrastructure Packages were announced, with Vblock 1 and 2 available immediately and Vblock 0 coming in 2010.

Vblock 0: an entry-level configuration that supports 300 to 800 virtual machines, designed for testing, development, small data centres and medium-sized businesses

Vblock 1: a mid-sized configuration that supports 800 to 3,000 virtual machines, designed for consolidation and optimization initiatives

Vblock 2: a high-end configuration that supports 3,000 to 6,000 virtual machines, designed for large-scale and "green field" virtualization

But Vblocks are just the beginning for VCE. "This is a phase one in terms of what the coalition can do. It will be a multi-phase, multi-year approach," said Chambers.

The announcement also introduced a joint venture called Acadia. The lead investors are Cisco and EMC, followed by VMware, with Intel Corp. listed as a minority investor.

Acadia will "build, operate and transfer Vblock infrastructure to organizations." Operations are scheduled to begin in the first quarter of 2010, with roughly 130 employees.

The joint venture will have its own CEO, which we are recruiting as we speak, said Joe Tucci, CEO of EMC.

The CEOs also discussed plans to leverage their partner ecosystems and provide unified sales, service and support.

"It is really the industry's first time at a complete end-to-end vendor-owned solution, the ability to look a customer in the eye and say we will have one group supporting you," said Chambers.

The coalition's mantra is "efficiency, control and choice," said Tucci. The best thing you are going to get is lower total cost of ownership, it will be simpler to manage and more flexible and we are committed to openness, he said.

Partnering is more difficult than acquisitions, according to Chambers. "If 90 per cent of acquisitions fail, it gives you my view. Most strategic coalitions have a very high failure rate, worse than acquiring, and yet as a company, we've all three been able to do this," he said.

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