Monday, January 14, 2008
Thursday, January 10, 2008
VMware - A SWOT Analysis
Strengths
One of the major strengths of VMware is its adaptability on a variety of platforms from the large, such as IBM’s x445, to the small, such as HP blade servers. They also sell an add-on called Virtual SMP that allows its customers operate virtual dual-processor servers. This allows their software to be purchased by a wider swath of customers, from large corporations to the small firms with a one person IT staff.
Another strength of VMware is the ability to perform “live migrations” for its users. The live migration is the ability to move running virtual machines between physical servers. This migration ability, which VMware calls VMotion, is far and away more advanced than its competitors, such as Microsoft.
One more strength is VMware’s lead in the industry. VMware’s virtualization software is ahead of its strongest competitor, Microsoft, by 18 months to three years. This lead allows it to set the industry standards, with competitors following its lead and looking like copiers instead of innovators.
VMware also allows a company to enter the virtualization world gradually. It allows its customers to implement it in increments and not all at once. That way the IT staff can become accustomed to it at its own pace.
Weaknesses
While its strengths are good, VMware does have its weaknesses. One of these weaknesses is cost. The amount of memory needed to run VMware is large. In order to run more than one virtual machine, the minimum amount of memory is 1GB, more is recommended. This can add to the costs a company must pay. Along with being a memory hog, the customers must also run a very powerful CPU when running machines concurrently. Another cost factor is VMware charges a per workstation license fee. For a large company, this can quickly add up.
While Microsoft is way behind VMware in virtualization software, the mere presence of Microsoft in the field is a weakness. VMware may have the better software but there are numerous companies that run in a pure Microsoft environment. According to an article entitled “Buying off the plans, CHH opts for Microsoft roadmap”, Carter Holt Harvey (CHH) is going with Microsoft’s virtualization software.
After a SWOT analysis (strengths, weaknesses, opportunities and threats) VMware and Microsoft came in very close, says Modkov. In the end, the company decided to go for Microsoft’s virtualization product, even though it was a relatively new technology, “miles behind VMware”, he says.
“We knew that we were basically the only early adopter,” he says.
But the company, a Microsoft shop, found the technology fit-for-purpose for its current IT environment. In addition, because the IT team was already familiar with Microsoft, it was easy for staff to learn and adopt the Microsoft virtualization platform, he says.
Taking Microsoft’s virtualization strategy and technology roadmap into consideration, Modkov felt that the long-term benefits far outweighed any current issues. “We looked at Microsoft’s roadmap, and we believed them,” he says.
This soft of loyalty to a company’s brand is hard to overcome, even for an industry leader like VMware.
Opportunities
With virtualization moving from leading edge to mainstream, more opportunities are becoming available for VMWare. VMWare’s purchase of Dune Technologies in September of 2007 positions it to enlarge their remote desktop management areas of products. “The application from Dunes is a natural fit for the most recent version of Virtual Desktop Manager”. With the growing numbers of intercontinental companies, the market for remote and virtual desktop management systems is sure to be a growing market.
The virtual application arena is another promising expansion area for VMWare. As virtual machine environments continue to grow, more business will realize the flexibility and low overhead of virtual applications. “Virtual appliances are pre-built, pre-configured, ready-to-run enterprise applications packaged with an operating system inside a virtual machine”. From the definition, it is easy to imagine the advantages virtual appliances will have for smaller businesses. Businesses of all size will be able to run enterprise applications without the high overhead of traditional hardware. Virtual appliances also give independent software vendors (ISVs) opportunities to reach a greater customer base. Since the virtual appliances include the operating system they run on, ISVs can save development time and resources by deploying virtual appliances that run on a single operating system thus avoiding compatibility issues. Additionally, customers can download and install the virtual appliance on their hardware of choice regardless of cost. This creates a larger market for enterprise applications that would otherwise be out of price range for smaller businesses.
Threats
One of the largest threats to the VMWare virtualization software is security breaches. "There hasn’t been a significant security breach in virtualization, not a public one," says IDC analyst Stephen Elliott. "At some point, you have to figure it's a matter of time". According to Laurianne McLaughlin’s article, hypervisor malware and hypervisor weaknesses may make it possible for a hacker to breach VMWare’s guest operating system and access the host operating system of the server.
In addition, virtualization technology has made it more difficult for the IT team to see the traffic running between VMs. The security tools have not kept up with virtualization technology meaning that network and security departments have lost visibility to network traffic.
Although a public security breach has not yet occurred, it is important that VMWare and other competitors continue to develop the security tools to protect the virtual environments. Security issues that place corporate data at risk will diminish the sale of virtualization software at fast rate.
From a business perspective, the largest threat to VMWare’s continued growth is the number of companies that are going to enter the virtualization arena in the near future with differentiating technology. “Among them are start-up Virtual Iron a Lowell, Mass.-based company whose software is designed not only to run multiple operating systems on one machine but also to let a single operating system span several machines”. VMWare is clearly the leader in the virtualization space but to grow its market share and continue to justify its price tag, VMWare must continue to offer the latest and greatest in virtualization technology.
Sources:
VMware calls for IT organisational overhaul –
http://www.vnunet.com/vnunet/news/2198798/vmware-chief-virtualization
Logicalis - Virtualization on the Inside - http://www.us.logicalis.com/custexp_logicalis_vmware.htm
Microsoft's feature cuts imply virtualization weakness - http://www.cbronline.com/article_feature.asp?guid=1AAD53D7-B1ED-4FC2-8AB7-A99830E8DE91
What can you do with VMware Workstation 5 - http://blogs.techrepublic.com.com/window-on-windows/?p=436
Buying off the plans, CHH opts for Microsoft’s roadmap - http://computerworld.co.nz/news.nsf/spec/8AD5AC5AA657965CCC25734700798D82
Hickins, Michael. "VMware Buy Expands Virtualization Opportunities."
http://www.eweek.com/article2/0,1759,2181898,00.asp
"Learn About Virtual Appliances." VMWare
http://www.vmware.com/appliances/learn/
"Future Threats to Virtualization Security: Fact vs. Fiction http://www.cio.com/article/155050/
"Virtualization companies vie for advantage
http://www.news.com/Virtualization-companies-vie-for-advantage/2100-7344_36035212.html
Thursday, January 3, 2008
VMware: Market Share Analysis
VMware Inc. (NYSE:VWM) sells software that is integral to the operation of efficient network resources and data centers. VMware's virtualization software can make multiple physical computers behave like a single, ultra-powerful "virtual" machine, or split apart a single physical machine and make it behave like multiple computers (for example, to host several different websites on the same server). In addition to software sales, thirty percent of VMware's revenue comes from services such as maintenance and upgrades and training.
In 2007, VMware is expecting to post an impressive 67% sales increase over 2006’s figures. These numbers reflect virtualization's rising popularity in the marketplace. As IT professionals become more familiar with virtualization, the technology should become more commonplace. By the year 2010, it is estimated that around 15% of all physical servers will be virtualized, as opposed to 2% in 2006.
VMware is currently the leader in the virtualization market, with its estimated market share ranging from 55% to 80%. Depending on how one defines the virtualization market, VMware's competitors include Microsoft, Citrix System, IBM, Hewlett-Packard, Oracle, and Sun Microsystems.
The Main Competitors
VMware leads the market today, but competition looms. Though Microsoft hasn't released much virtualization software yet, it is expected to include a free version of its proprietary virtualization software, called Hyper-V with Microsoft Server 2008. It is expected to hit the market in mid-2008. Hyper-V is expected to be pretty basic compared to VMware's fine-tuned virtualization programs. The fact that it is free and carries the Microsoft name makes it a notable competitor.
In August 2007, Citrix jumped at the chance to gain market share through acquisition. They spent $500 million to buy privately held virtualization vendor, XenSource. XenSource’s flagship product is XenEnterprise 4, which is in a direct competitor to VMware Infrastructure 3. XenEnterprise 4 features premium functions such as live migration of virtual machines among physical servers, but with a significantly lower price tag.
The Here and Now
Seekingalpha.com recently surveyed ChangeWave Alliance corporate IT members about their company’s spending on virtualization software and services. Of those that use virtualization software, 55% chose VMware. Note: some companies use more than one vendor.

To get an idea of where the virtualization market is headed, Seekingalpha.com asked the respondents about future virtualization purchases. Seventy-one percent said VMware should be their software of choice, easily eclipsing the competition.

According to the respondents of the ChangeWare Alliance survey, VMware customers are reporting the highest satisfaction levels in the industry. Fifty-six percent say they are Very Satisfied with VMware.

Sources:
Citrix Acquires XenSource, Heats up Virtualization Market
http://www.nemertes.com/free_content/research_notes/impact_analyses/nemertes_impact_analysis_citrix_acquires_xensource_heats_up_virtualization_market_0
Microsoft vs. VMware for the Virtualization Crown
http://www.glgroup.com/News/Microsft-vs.-VMWare-for-the-Virtualization-Crown-19944.html
VMware Sees New Competition
http://blog.trade-radar.com/2007/12/vmware-sees-new-competition.html
VMware Rules the Virtualization Market
http://seekingalpha.com/article/54307-vmware-rules-the-virtualization-market
Friday, December 14, 2007
Latest Marriage: SAP + VMware
"VMware Infrastructure has many benefits for hosted environments," said Benno Weidmann, vice president, hosting infrastructure management at SAP Hosting. "We've been able to automate internal business processes and increase service levels to internal customers. In addition, we have reduced costs with consolidation and automation of system deployment, as well as greatly reduced the required hardware for internal training and development systems. Altogether, virtualization helps us to lower costs, develop and automate user services, better manage hardware and software lifecycles, and improve production and capacity planning across a more unified infrastructure."
http://money.cnn.com/news/newsfeeds/articles/prnewswire/AQW10612122007-1.htm <http://money.cnn.com/news/newsfeeds/articles/prnewswire/AQW10612122007-1.htm>
How does this impact VMware and SAP? It meets a growing demand for current or potential SAP clients to run virtualization software. This is a product enhancement that SAP competitors such as Oracle do not have. This is a competitive advantage for both VMware and SAP, especially since Oracle is working to launch virtualization software but hasn't been able to do so yet.
Is VMware too Expensive?
And Diane Greene's response? "...while competitors are coming into the market, coming out with a hypervisor product isn't an easy task. VMware's software is far more feature rich and has far more advanced capabilities than rival virtualisation companies. VMware is a pretty progressive company and we have continued to develop new products that have added value to help enable us to maintain our price points because of all the amazing new functionality that is of very high value in terms of cost savings for our customers."
If VMware is concerned about the competition cutting into market share and driving down prices, Diane Greene isn't showing it.
http://www.techworld.com/opsys/features/index.cfm?featureID=3885&pagtype=samecatsamechan <http://www.techworld.com/opsys/features/index.cfm?featureID=3885&pagtype=samecatsamechan>
Wednesday, December 12, 2007
That Car Can't Fly!!
VMware does have a server product that runs on top of a host operating system like MSVS, and it's the free VMware Server. MSVS should by all rights be compared to VMware Server, not ESX Server.
ESX Server is much more powerful, but comes at a higher price, a bit more complexity for enterprise-scale deployments, and a smaller universe of supported hardware.
So let's look at this article by Alex Barrett at SearchServerVirtualization. It starts with a fair premise -- for some small shops, it's a path of least resistance to just use MSVS and call it a day.
And when you read closely, Alex mentions VMware Server, but when the people he interviews start talking about price and VMotion in an article on MSVS, alarm bells should start going off.
Microsoft Virtual Server flawed, not broken, users say.
The More The Merrier...
VMware's co-development initiatives include the VMware Community Source program, which enables partners to contribute to and use the source code for VMware ESX Server, as well as ongoing product engineering projects with partners that leverage VMware APIs. These co-development programs enable industry collaboration that has resulted in new value-added products and functionality optimized for VMware environments.
The collaborative development resources offered by VMware have enabled partner organizations to develop products for VMware Infrastructure that offer increased interoperability and supportability, improved I/O capabilities, expanded storage and networking choices and improved desktop management. VMware co-development programs enable participants to work closely with VMware to develop products that further extend the value of customers' VMware deployments through enhanced functionality.
If It Ain't Broke...
The Golden Rules of IT
1) If it's not broken, don't fix it. Most organizations simply don't have thetime, the resources or the funds to re-implement things that are currentlyworking.
I think this has been one driver for VMware's successful adoption. It is so easy to get started with VMware -- download VMware Server - some necessary but little-used old servers that are just sucking up electricity, and go.
You don't need a special paravirtualized kernel, just whatever you were running (Windows, Linux, Solaris, etc.);
You don't need to recompile your app;
You don't need to get special hardware;
You don't even really need a SAN or other fancy enterprise storage to get started -- just virtualize, no re-implementation needed.
The key point is that you treat a virtual machine just like its physical counterpart -- although try not to have every antivirus and backup job in every virtual machine on an ESX Server fire off at the same time.
Wednesday, December 5, 2007
Mac or PC?
You've all seen those funny Mac vs. PC commercials that make fun of the PC character. They make you think it's one or the other. But in reality, with Apple’s switch to Intel processors, you can have both with a little program called VMWare Fusion.
Savvy Mac users are probably thinking "Oh, right, that’s what Parallels does. If Parallels comes with my Mac, why should I buy Fusion?"
You can do some crazy things with Fusion.
Here are some of our favorites:
FLIP IT! Wish you could have a Mac but have one or two Windows applications that you can’t live without? You don’t have to be locked in anymore. Outlook, Windows Media Player, Microsoft Project, AutoCAD, Solidworks…you name it. They all can run in a Windows virtual machine on VMware Fusion.
TWO AT A TIME! With virtualization you are running, in effect, two computers at the same time when you run Windows on your Mac. That can take some horsepower. VMware Fusion’s mature technology means much less CPU overhead. As Walt Mossberg of the Wall Street Journal noticed, “VMware Fusion has a much smaller impact on the Mac’s overall performance [than Parallels.]” With VMware Fusion, Outlook in your Windows virtual machine doesn’t slow down your Safari session running on Mac OS X.
SHARE THE RAM! VMware pioneered memory page file sharing. So running a VM in VMware Fusion takes up much less of your Mac’s memory than other virtualization products.
DON'T EVEN NOTICE! VMware Fusion’s Unity feature lets your Mac treat Windows applications like its own. Windows applications show up in the on the bottom of the screen and you can even minimize Windows apps down to the Dock too.
GOTTA HAVE USB 2.0! Got a GPS unit that doesn’t support Mac? With VMware Fusion, just load the software in Windows and plug the USB cable into your Mac. Blackberry, USB VOIP softphones, webcams, scanners, printers, all of the above. You can still use them with a Windows VM. Just because you want to switch, doesn’t mean you should have to say goodbye to near and dear peripherals.
IT'S AN OS PARTY! Linux, Solaris, Windows from 3.1 through Vista Ultimate x64. 32-bit or 64-bit. VMware Fusion can run it. In fact, VMware Fusion can run over 60 operating systems on your Mac.
Staying Ahead of the Pack
Our last post focused on the threats to VMWare. Here’s how they’re staying ahead of the pack!
Just last month, VMware unveiled VMware Server 2, the next generation of the company’s easy-to-use, free-of-charge virtualization product.
VMware Server 2 beta is feature-packed with the following new capabilities:
- Intuitive web-based management interface: VMware Server 2 provides a simple, flexible, intuitive and productive management experience. Features include an embedded virtual machine console, full management functionality and the ability to create customized remote console URLs for virtual machine users.
- Expanded operating system support: VMware Server 2 now supports more than 30 types of guest operating systems, including Windows Vista, Windows Server 2008 (beta), Red Hat Enterprise Linux 5 and Ubuntu 7.10.
- Virtual Machine Interface (VMI) support: VMware Server 2 includes support for transparent paravirtualization through VMI, enabling enhanced communication between virtualized operating systems and the virtualization layer.
- Support for high-speed USB 2.0 devices: The USB 2.0 support provided by VMware Server 2 allows for increased flexibility for customers using peripheral devices in virtualized environments.
- Enhanced memory and processor support: VMware Server 2 now supports up to 8 GB of RAM per virtual machine and up to 2 Virtual SMP processors. The product also features support for 64-bit guest operating systems on 64-bit compatible processors for improved performance and scalability.
More than 3 million copies of VMware Server have been downloaded to date, with approximately 70 percent of these downloads coming from companies typically categorized as small and medium businesses.
VMware Server 2 beta for Linux and Windows hosts is available for immediate download at http://www.vmware.com/go/server2_beta.
“We've tried other solutions, but nothing matches the stability and ease of use we get with VMware Server,” said Justin Patten, technical analyst at api software, inc., a provider of labor resource management solutions for healthcare organizations. “The software has already provided tremendous value to our organization with minimal investment, and the new Web-based management interface and APIs in the new version will make it even easier for us to increase the overall efficiency of our IT operations.”
It's All in the Tools
Everywhere VMWare turns, it seems like a new threat is popping up in the virtual machine world.
Oracle appears to be gearing up to be a competitive threat to VMWare. Oracle's virtualization software, announced November 12, "does not affect VMW's position as the de facto standard in server virtualization," says a Citigroup analyst report. VMware is an investment banking client of Citigroup.
Oracle's unveiling of VM, which stands for virtual machine for open source Linux business server environments, shook virtualization leader VMware.
But the jury's still out as to whether VMware can avoid a slowdown to its 90% growth rate.
Should VMware be worried? "Not today," says Gartner analyst Donald Feinberg. But Oracle is closing the window on VMware's long-term growth potential, he adds.
As hardware makers such as Hewlett-Packard add virtual machine management to their servers and partners such as Quest Software take on desktop virtualization, "it's becoming less and less obvious that there's going to be a need to have something like VMware."
Many analysts do not believe Oracle's virtualization software will have a short-term impact on VMware, which maintains a two-year technology lead. He said use of Oracle's VM "will be limited to Oracle-dominated shops, which are a rarity in today's heterogeneous enterprise datacenters."
Anaylsts say VMware, which has a commanding 90% share of the virtualization market, will maintain its edge for specialized software that allows servers to run multiple operating systems because its management software tools are superior to those of their competitors, including Microsoft.
Market share will be determined by the sophistication of virtualization management tools. VMware has a clear start in these tools, said Michael Cherry, an analyst with Directions on Microsoft. He spoke last week at a Citigroup-sponsored analysts session on Microsoft.
Cherry said Microsoft, which recognizes the benefits of virtualization as a means for building big data centers, is going to be behind VMware in the development of these tools for some time to come.
Tuesday, November 27, 2007
VMware Virtually Famous - Grand Prize Winners VMworld
Just a little VMware entertainment for your viewing pleasure.
Sunday, November 18, 2007
VMWare - A Virtual Dynamo
Background
VMware (NYSE: VMW) was founded in 1998 by Diane Greene and Mendel Rosenblum with the purpose of providing virtualization software which will allow more flexibility in running multiple operating systems while increasing server performance and productivity. In 2004, the company was acquired by EMC and had its IPO in August of 2007. The company is currently headquartered in Palo Alto, California and employs approximately 4500 people in 40 offices nationwide. VMware serves over 20,000 customers of all sizes. Notably, every Fortune 100 company is a customer of VMware. In FY06 VMware posted revenues of over 700 million dollars.
Products
VMware is a leading provider of infrastructure virtualization technology and software. Simply put, virtualization makes it possible to run multiple operating systems and multiple applications on one computer or server at the same time. The advantages of virtualization are increased server/ resource utilization and improved performance which ultimately reduces the cost of delivering enterprise IT services. VMware offers virtualization technology for desktops and servers. VMware desktop software allows for multiple operating systems and applications on one physical computer. The server software is a bit more robust in that it can manage and optimize resources over multiple servers for increased performance and enhanced security.