what you are saying is that vmware wants to own the layers 4-7 of the OSI model -- and what is the value for the enterprise in the long-run? how come they are not just creating a closed system in an otherwise open world?

i don't see the value to vmware of owning all those tools, unless they sell to paranoid cios about the value of a secure closed network (which i guess they call "private cloud" - an oxymoron in itself). even then, that value disappears rather quickly when we implement better cloud (real cloud, not public cloud) security.

what is the value long term of that strategy?

Ben Kepes Replied on May 31, 2011

Why are you looking at this in terms of an enterprise play? What is happening here is that a primarily infrastructure vendor, in the face of commoditization around their bread and butter - moving further up the stack to offer added-value services that can either leverage their core offering (infrastructure) or provide a whole new revenue stream through connected and integrated best of breed applications...

Esteban Kolsky Replied on May 31, 2011

how can you now look at this as an enterprise play?

but to return to your answer... vmware is not an infrastructure vendor - but not going to go technical on that here.

the point is, they are not adding value -- they are creating closed network with apps in view of most everyone else going open.

let's talk about that... are they not?

(and, btw, when you talk about revenue for a vendor you have to be talking about enterprise -- and way from customer needs)

Ben Kepes

Director, Diversity Analysis

Posted on May 31, 2011

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Michael Schmier

I believe there is fundamental value to be offered by providing a complete offering that ties together discrete applications with a messaging layer (a la socialcast). In VMWare's case they can give that offering on top of their own lower layers.

In terms of the revenue question - s a customer I don't have a problem paying one vendor money if they provide me with a compelling offering - in this case the marketplace will decide

Ben Kepes

Director, Diversity Analysis

Posted on May 31, 2011

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Brielle Nikaido

It's big. Socialcast is a nice "gluey" offering that ties together different applications to offer a common social feed. VMware has been uber active in the past few months moving up the stack to the application layer - they're rapidly building out a compelling proposition and social cast ties all hat together and gives social visibility into the different streams. It's exciting for sure...