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This content is part of the Essential Guide: VMworld 2014 conference coverage
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Cloud competition heating up as Amazon takes aim at VMware

In this podcast, we talk about what the AWS Management Portal for vCenter means for VMware and how to calculate true cloud computing costs.

Cloud computing competition is heating up these days, as established players like Amazon look to build on their services while holding off newcomers with big ambitions and fat wallets.

Earlier this month, Amazon announced the AWS Management Portal for vCenter, creating a wave of excitement and surprise that Amazon would so blatantly target the virtualization market leader, VMware Inc. However, the plug-in -- which gave VMware customers the ability to manage Amazon EC2 instances through the vCenter management console -- doesn't really deliver on the doomsday predictions some early speculators suggested.

In this edition of the "This Week in Virtualization" podcast, Senior News Writer Beth Pariseau explains why functional limitations to the AWS Management Portal for vCenter make it more of a curiosity than a serious risk to VMware's business. But, that doesn't mean VMware should ignore threats to its business and future in the cloud. A recent analysis by Gartner Inc. put VMware's vCloud Hybrid Service in the "niche players" segment of its 2014 Magic Quadrant for Infrastructure as a Service -- lagging far behind both Amazon Web Services and Windows Azure.

Pariseau and SearchServerVirtualization Assistant Site Editor Ryan Lanigan also talk about the difficulty of calculating cloud computing costs and why you can't simply compare total cost of ownership estimations for cloud computing with in-house virtualization deployments. There must be cases where cloud isn't cheaper, right?

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Do you think the AWS Management Portal for vCenter is a threat to VMware?

Just a few quick points:


In the interview you discuss that AWS and Azure are the
cloud leaders, and comment on the magic quadrant.  However, I think it’s important to
differentiate between private cloud and public cloud.  I think most of the world would agree VMware
is by far the leader in private cloud, which today accounts for over 80% of all
fortune 1000 workloads running in a cloud environment. 

I’d also like to comment about VCHS not offering a competitive
product to AWS’s database services. 
However, if you consider VMware’s relationship with Pivotal and the
ability to run Pivotal Cloud Foundry within VCHS and Big Data Extenstions
(Hadoop) within VCHS, I’d argue that VMware has a better PaaS offering.  Amazon is historically focused, IMHO, on
providing Infrastructure and Platform for legacy workloads, while Cloud Foundry
and some of the new things VMware is trying to deliver are focused on next gen
app modernization. 

It’ll be in interesting few years to see how things turn