The new world makes it difficult to understand what drives IT decisions. People want to use their own devices without compromise; how does enterprise IT fit into this new world? How do we evolve in a world that is changing so fast? Its time to make history again and rethink and master the new reality is the challenge to the partner community from VMware.
Dave O'Callaghan the Sr. Vice President of the partner community takes the stage and welcomes the crowd to PEX 2014. Dave talks about VMware's total revenue from 2007 to 2013 moving from 1 to 5 billion dollars. 85% of that revenue has come through the partner network.
Dave explains that success is about constantly aligning to the new reality. Dave draws the conclusion that the new reality is aligning our businesses to delivering a software defined datacenter. This will require practise, focus and training to meet the challenges of the new reality.
Dave introduces Carl Eschenbach, President and Chief Operating Officer at VMware. Carl explains that their are 4000 partners in attendance this year. Carl explains our challenge is to become masters of the new software defined enterprise. VMware will provide the tools to partners to assist them to do so. VMware made 5.21 Billion dollars in revenue in 2013 delivering 17% growth.
Carl reaffirms VMware's commitment to the channel as it has been key to their success. VMware has invested in $300 million in partner programs to provide incentives to the partner community. VMware's renewals business is at an all time high.
Carl explains that they have invested heavily in bringing the right executive team: Sanjay Poonen (End User Computing), Ben Fathi (Chief Technology Officer), Robin Matlock (Chief Marketing Officer), Tony Scott (Chief Information Officer), and Sanjay Mirchandani the GM of Asia Pacific and Japan.
VMware had 234 new software releases last year including major launches of VMware Horizon Suite and vCHS, NSX and vSAN beta among others. In addition VMware acquired desktone (Desktop as a Service) and virsto the storage hypervisor (vSAN) and announced the acquisition of AirWatch.
VMware's three priorities for 2014 are End-User Computing, Software Defined Datacenter and Hybrid Cloud. This potential software product market is estimated to be 50 billion dollars before services.
So what's next? The Software-Defined Enterprise is next. Carl takes us back in history from mainframe, client-server to mobile-cloud. The fundamental challenge in all these transformations has been relatively flat IT budgets. VMware sees more friction as the consumer demands more while budgets continue to remain flat. VMware believes that they are in unique position to address this. Why? because they have done this already with virtualization. By saving money, they have liberated a percentage of spending that can be spent on innovation.
The way VMware will deliver on this is to deliver the software defined enterprise. What are the foundations of the software defined enterprise:
1) Applications, however they are only as reliable as the infrastructure they run on. This stability is provided by introducing virtualization across all traditional physical datacenter infrastructure; server, network and software defined storage. However it also must extend to the Hybrid Cloud through interfaces like vCloud Automation Center (vCAC). This is the software defined datacenter.
2) End User Computing, in addition we need to give users access to the software defined datacenter though innovations in the virtual workspace while ensuring security compliance and control. The icing on the cake is AirWatch for mobility management.
VMware's mandate is Any App, Any Place, Any Time with No Compromise. VMware expects that the services revenue around these opportunities is 50 billion dollars for a combined total of software, licensing and services of 100 billion dollars.
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