Pat Gelsinger is introduced as the CEO
Pat challenges the audience to determine which way they will go in the future. VMware is helping customers and partners face forward to deal with the challenges in a digital world. Digital Transformation is the buzz word of 2016. Digital Transformation implies that it needs different management frameworks. VMware says nonsense to this as all business today is digital.
One of the important questions to ask with Digital Transformation is "Is it real?” Pat sites GE as being the only company still part of the Dow industrial average after 12 decades. This is because they are constantly innovating. The next company Pat mentions is CVS and their mobile application that helps track everything they do for the company and their customers.
IDC says that approx. 20% of business are leading in digital transformation. 8 of 10 however don't get it. Are the companies that are not moving forward leaning on their traditional IT methods? What VMware is building is transformational.
In 2006 Amazon started their Cloud Platform. In 2006 98% where running in traditional IT. 2% where in Public Cloud which was largely salesforce. In 2011 7% of workloads where in Public Cloud with 6% in Private Cloud. In 2016 15% in Public and 12% in Private Cloud. In 2021 according to VMware data will be split 50/50.
When does Public Cloud exceed Private Cloud? The estimate is 2030. There is also a shift in where customers are running their workloads. Managed Cloud Services are growing by 18%. The dominant shift is customers Private Clouds running in someone else's datacenter.
Device proliferation is making end user devices a replacement market. But IoT is exploding and in 2019 it is expected that devices will exceed the number of human devices connected to the web. VMware believes that in this new world as Cloud takes route IT expands not decreases.
VMware and IDC looked at the industries that are embracing cloud such as the construction, professional services, securities, insurance and transportation industries. One major increase in the use of Cloud is through the business units in an organization. Business usage is increasing by through Shadow IT. In an average industry there are cloud, SaaS and mix personal of devices. IT is typically in charge of security in this environment. Ironically IT is responsible for everything but control very little. This sets up a struggle of freedom vs control.
VMware has been working on this through the SDDC. The datacenter will be software and programmable. NSX and Virtual SAN are in the rapid adoption phase "the tornado phase" described in the book "Crossing the Chasm".
VMware Announced today vCloud Air 0 downtime migration to their Cloud. But VMware is not stopping there. VMware Introduces the VMware Cross-Cloud Architecture. VMware Cloud Foundation is the name of this solution. This is not just new pricing and packaging, the foundation extends management and security to Public Cloud. The first partner in this model is IBM.
Robert Leblanc the Sr. VP of IBM is introduced. Robert mentions that they have 500 clients in the cloud with 50% growth month over month. In addition to providing software defined datacenters they also provide desktops as a service. IBM and Cloud Foundation provides the vRealize software as a service.
VMware Cloud Foundation provides visibility in both VMware and Non-VMware Private and Public Clouds. Guido Appenzeller the Chief Technology Strategy Office at VMware is introduced. Guido asks "is IT necessary with Public Cloud?” Even in an age with mega clouds IT is required but the way we manage is different. Citi Bank takes the stage to describe their cloud strategy. The challenge for the bank is can an automated self-service environment be hybrid, leverage commodity components and be secure?
How will the bank deal with the complexity of bursting to Cloud? One of the Banks challenges is automating in a standard way across different Cloud APIs. In addition security is absolute and has to function in a multi-jurisdictional and complaint manner.
Guido asks if VMware can VMotion and manage across multiple hardware providers, why not multiple Public Clouds? VMware Cloud Services is introduced and it will be delivered as a SaaS offering. The demo is started through the VMware Cloud Services management interface. Guido adds a developer users Public Cloud credentials. The tool then sucks up all the resources the user has been developing. Now we can see all the instances the user is running. We can now look at this by application. In the demo the tiers are exposed as well as the costs of the workloads. Guido opens up Security Services to look at the network traffic flow to see if it is secure. This looks to be an Arkin vRealize Network Insight integration.
Part of the suite is NSX; they switch back to VMware's Cloud Services interface. They then deploy the application with an NSX cloud gateway as part the application in the Amazon Public Cloud. The demo switches back to vRealize Network Insight "Security Services" to show that the insecure network traffic flow is now closed.
Guido reiterates that they have done micro-segmentation and secure policy in the Public Cloud. The demo now migrates the workloads between different geographies to different Public Cloud environments (Azure and AWS in the demo). Guido reiterates that they cloned and migrated different workloads across Public Clouds. This is an early tech preview at this time.
Pat returns to stage with Michael Dell who explains how Dells Converged Infrastructure approach is complementary to VMware's Private Cloud Strategy. Pat challenges everyone to take the time to learn these new technologies at the show.