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CTC and VMware Announce Plans to Build Hybrid Cloud Service in China

By Sanjay Mirchandani, Senior Vice President and General Manager, Asia Pacific and Japan

Today marked a milestone development in VMware’s growth story in Greater China.

We have signed a Memorandum of Understanding (MoU) with China Telecom Corporation, Cloud Computing Branch, to build a world-class hybrid cloud service that will start benefiting Chinese customers next year.

This move represents an important strategic hybrid cloud partnership in China, providing Infrastructure-as-a-Service initially, with the potential to deliver future solutions that include Disaster Recovery-as-a-Service and Desktop-as-a-Service.

Based on VMware software, these solutions will be operated by China Telecom under the brand name “CT E-surfing Hybrid Cloud Services (Powered by China Telecom and VMware)”.

This news broke in one of the world’s fastest growing cloud markets, which adds significant weight to VMware’s vision of hybrid cloud as the future of IT.

Our vCloud software enables seamless extension of a private on-premise cloud to the public cloud in a way that’s compatible with existing IT assets. The result is that IT departments can manage a “best of both worlds” cloud environment in a totally unified manner, using a platform they already know and trust. This process unfolds as part of a natural transformation on the journey to our vision of IT-as-a-Service.

VMware has been pursuing a strategy of partnering with key Chinese technology, distribution and service provider partners to produce Chinese solutions for Chinese organizations. In that regard, China Telecom is the nation’s biggest cloud service provider. It operates an extensive telecommunications network and serves the largest Internet user base in China.

When the new hybrid cloud service is up and running, China Telecom’s sales force will target large to medium-sized enterprises and government departments. These will typically involve the financial, energy, transportation, insurance, healthcare and education sectors.

Cloud market development is part of the Chinese government’s 12th Five-Year Plan, so we are particularly pleased to be playing a role in that – ultimately helping Chinese organizations to benefit from greater agility and efficiency.

Chinese enterprises seizing the opportunity to make their businesses more competitive will give rise to significant demand. In fact, IDC forecasts that the total public cloud market in China will grow at a CAGR of 25% – from $1.464 billion this year to $2.890 billion in 2017.

Today’s news is the latest chapter in VMware’s rapid expansion story in Greater China. This part of our Asia Pacific & Japan business has grown by some 20% over the last two years. Our first mainland China office opened in 2005, since when we have established a presence in around 30 cities.

Forward-Looking Statements

This blog post contains forward-looking statements including, among other things, statements regarding VMware and its affiliates plans for further expansion of its vCloud Hybrid Service offerings, the general availability of the vCloud Hybrid Service in China, the benefits to customers of vCloud Hybrid Service, and the growth of China’s public cloud market.  These forward-looking statements are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) competitive factors, including but not limited to pricing pressures, industry consolidation, entry of new competitors into the cloud computing market, and new product and marketing initiatives by our competitors; (iv) our customers’ ability to develop, and to transition to, new products and computing strategies such as cloud computing; (v) the uncertainty of customer acceptance of emerging technology; (vi) rapid technological and market changes in virtualization software and platforms for cloud computing; (vii) changes to product development timelines; (viii) VMware’s ability to protect its proprietary technology; and (ix) VMware’s ability to attract and retain highly qualified employees. These forward looking statements are based on current expectations and are subject to uncertainties and changes in condition, significance, value and effect as well as other risks detailed in documents filed with the Securities and Exchange Commission, including our most recent reports on Form 10-K and Form 10-Q and current reports on Form 8-K that we may file from time to time, which could cause actual results to vary from expectations. VMware assumes no obligation to, and does not currently intend to, update any such forward-looking statements after the date of this post.

Weekly News Recap: Pi Day Edition (March 14, 2014)

VMware News

In VMware news this week, Sumit Dhawan and the end-user computing team announced Monday the arrival of VMware Horizon DaaS, a new cloud-based desktop service that delivers cost-effective enterprise-class virtual desktops running on VMware vCloud Hybrid Service.

On Wednesday, John Gilmartin and the software-defined datacenter team announced a major milestone for VMware with the general availability of VMware Virtual SAN, a new, radically simple storage solution optimized for virtual environments. With VMware Virtual SAN, VMware delivers its first Software-Defined Storage product.

VMware has celebrated several industry distinctions recently. We are honored to announce that CRN recently named VMware a 2014 Channel Champion for Desktop and Server Virtualization. CRN’s Channel Champs awards celebrate 20 companies for their commitment to the channel. Winners were based on the rankings from 6,000 solution providers, with awards going out in 31 technical categories.

Additionally, VMware was named a finalist in three categories for the 2014 Best of Interop (#BOI) awards. Finalist status has been achieved for Virtual SAN (in the storage category), vCloud Hybrid Service (in the cloud category) and NSX Network Virtualization Platform (in the SDN category). Winners will be announced during Interop on April 1.

This afternoon VMware will celebrate Pi Day by geeking out on giving back. Together Why do you serve your community?with our extended community, VMware will host a Service Learning fair at its Palo Alto, Calif. headquarters, where employees can build connections with local causes and learn more about how they can give back.

Also this afternoon, VMware CEO Pat Gelsinger will join the Stanford Institute for Economic Policy Research (SIEPR) at its annual SIEPR Economic Summit. Pat and Adobe Systems CEO Shantanu Narayen will participate in an Economic Outlook session to discuss the strength of the economy and other trending topics in the news. Stay tuned to the Company Blog for more updates on this session.

Industry News

In industry news this week, Diginomica’s Kenny MacIver publishes a story on the implementation of vCloud Hybrid Service in “Betfair shares the ‘secret sauce’ of hybrid cloud.” Kenny quotes Betfair CIO Michael Bischoff, saying, “Our customers tell us the most important thing they worry about — other than the betting odds — is the reliability of our site, the ability for them to place a bet and to cash out a bet whenever they want to. And for us that means the ability to provide both infrastructure at scale and to get at the economies of public cloud. The key element as far as we are concerned is that we can now [solve] the operating cost conundrum [and enjoy] the lack of capital investment — in tin and wire, tools, processes, training, and so on.”

SiliconANGLE’s Suzanne Kattau writes, “Hot on Amazon’s heels, VMware expands cloud platform with desktop-as-a-service offering.” Suzanne reports, “What sets VMware Horizon DaaS apart from Amazon WorkSpaces is that it’s integrated with View, which means that admins can manage their on- and off-premise deployments from a single pane of glass.”

Brian Madden also reports on this week’s Horizon DaaS announcement in “VMware beats Amazon, launches Horizon DaaS for $35 per user, including persistent.” Brian writes, “All this activity is good news for customers and represents the first steps towards 2014 being the ‘Year of DaaS.’”

“It was interesting to hear today that it is VMware, not AWS, that is first to fully launch a Desktop as a Service (DaaS) offering. This despite the fact that AWS announced a DaaS offering, Workspaces, a whole four months ago.” – Ben Kepes, Forbes

The Register’s Simon Sharwood discusses VMware’s biennial VCP recertification announcement. He writes, “The good news is that those seeking certification don’t have to attend a course, although those whose VCPs were earned on older software may find them useful. VMware offers lots of study material available online. Books covering vSphere 5.x for VCP aspirants cost around $US50. Nor are exams exorbitantly expensive: quotes online come in at around $US250.”

Dave Raffo of TechTarget explains VMware’s plans to enhance its storage offerings with vSAN in “VMware Virtual SAN shines storage spotlight on VMware, hyper-convergence.” He reports, “With its Virtual SAN, VMware Inc. is no longer dancing around its role in storage. The hyper-converged software makes VMware just as much a storage company as the many vendors who sell nothing but storage.”

In “VMware leapfrogs AWS with Windows cloud desktop launch,” ZDNet’s Nick Heath reports that Horizon DaaS will allow “businesses to deploy virtual Windows operating systems to desktop, laptop and mobile devices.”

Forbes contributor Ben Kepes also reports on VMware’s Horizon DaaS announcement, noting that VMware beat Amazon Web Services in delivering a desktop-as-a-service offering with this move. Ben writes: “It was interesting to hear today that it is VMware, not AWS, that is first to fully launch a Desktop as a Service (DaaS) offering. This despite the fact that AWS announced a DaaS offering, Workspaces, a whole four months ago.”

“With Virtual SAN, VMware is finishing off the trifecta of its software defined data center (SDDC) strategy… Storage can be thought of as a last frontier for VMware to conquer, and Virtual SAN is a piece of that strategy.” – Brandon Butler, Network World

Daniel Robison of V3.co.uk reports on VMware’s VSAN general availability, writing, “VSAN integrates with the firm’s vSphere virtualization platform and essentially does for storage what VMware’s hypervisor does for compute resources. In other words, it creates a pool of storage from all the resources available in a server cluster, with the aim of simplifying and automating management of storage in the data center.”

The Register’s Simon Sharwood reports on the update made to VMware vSphere 5.5. He notes, “Some of the update’s features were widely known in advance, especially the inclusion of the VSAN virtual SAN right there in the kernel.”

VMware’s announcement to launch Horizon DaaS was also the subject of an article by eWeek’s Jeffrey Burt. Jeffrey points out, “The Company is getting to market faster than Amazon, which announced a service last year but has yet to make it generally available.”

GigaOM’s Barb Darrow reports on VMware’s announcement to hire Justin Sheehy. Barb reports that “Justin Sheehy, who acknowledged he is leaving Basho on Monday, will join VMware as a senior director and site leader for the company’s Cambridge, Mass. office. In his new gig he will work on VMware’s storage and availability efforts, he said on Tuesday.”

“VMware seeks to dominate virtual storage with Virtual SAN as, at the same time, it gains ground in network virtualization.” – Charles Babcock, InformationWeek

VMware’s plans to reinvent the Storage Area Network with VSAN is the topic of an article by Network World’s Brandon Butler. Brandon writes, “With Virtual SAN, VMware is finishing off the trifecta of its software defined data center (SDDC) strategy… Storage can be thought of as a last frontier for VMware to conquer, and Virtual SAN is a piece of that strategy.”

InformationWeek’s Charles Babcock explains VMware’s VSAN following his discussion with VMware’s Alberto Farronato. Charles reports that “VMware seeks to dominate virtual storage with Virtual SAN as, at the same time, it gains ground in network virtualization.”

Joab Jackson of IDG News Service also reports on VMware’s VSAN general availability news, quoting Alberto as saying, “It is about management simplification.”

CruxialCIO’s Antone Gonsalves discusses VMware’s Horizon DaaS launch in VMware Beats Amazon In Launching DaaS Cloud Platform.” Antone reports, “VMware has released its cloud-based service for delivering Windows desktops and applications, making good use of last year’s Desktone acquisition to beat Amazon Web Services to market.”

Paul Krill of InfoWorld explains why cloud computing has a big future. He writes, “Speaking at this week’s IDC Directions conference in Silicon Valley, IDC analyst Frank Gens offered projections on a number of technology areas, including growth for cloud computing. ‘We know the last seven years, folks were building out global data centers. We haven’t seen anything yet. We’ll see a doubling of the footprint.’”

Lastly, Enterprise Networking Planet’s Jude Chao explains software-defined networking in the optical cable space: “Some in the fiber world are showing symptoms of SDN fever, if the Optical Fiber Communication (OFC) conference happening now in San Francisco is any indication. Though the optical community’s approach to software defined networking is more cautious overall than the networking industry as a whole, several vendors are placing their bets on SDN.”

Stay tuned for our Weekly News Recap next Friday and be sure to follow @VMwareNews and subscribe to the VMware Company Blog to stay up to date with all VMware news and announcements throughout the week.


VMware Weekly News Recap: November 22

VMware News

This week, VMware announced a new joint solution with partner Palo Alto Networks that will automate and accelerate the deployment of next-generation network security with centralized management across physical and virtual domains. On a related note, Rod Stuhlmuller of the NSX team talks about the importance of an often-overlooked feature set fundamental to VMware NSX –network security.

On Tuesday, the vCloud team announced  the vCloud Hybrid Service is opening a new data center in Dallas. For more information, read Mathew Lodge’s post on the vCloud blog.

Also this week, the vSphere team announced the general availability of Pivotal CF. Pivotal CF is Pivotal’s commercially supported hybrid Platform-as-a-Service solution built on Cloud Foundry technology, enabling customers to rapidly develop, deploy and scale applications. Pivotal CF is optimized to run on VMware’s proven and widely adopted vSphere platform.

Lastly in VMware news, 2013 marks 15 years since VMware was founded and this week we celebrated 15 years of VMware history with an infographic highlighting some important, impressive and even quirky milestones and stats from throughout VMware’s past.

Industry News

In industry news, CRN released its list of Top 100 Executives of 2013 and four VMware executives were included on the list:

  • Pat Gelsinger, Top 25 Most Influential
  • Frank Rauch, Top 25 Sales Leaders
  • Martin Casado, Top 25 Disruptors
  • Raghu Raghuram, Top 25 Innovators

SearchSDN’s Patrick Hubbard explores how VMware NSX will change the network admin role. “Remember your first exposure to VMware ESX? … VMware NSX will bring the same kind of change to the network admin role – bringing with it great career opportunities for those who stay ahead of the curve.”

Ellen Messmer of Network World covers the new joint solution from VMmware and Palo Alto Networks, writing, “[the] goal is to increase the security and efficiency of the virtualization process by adapting the Palo Alto VM-based NGFW, the VM-300-HV, to work under the management and security framework envisioned under NSX.”

InformationWeek’s Mark Melvin discusses problems that can occur when dealing with software-defined networking in his article “Can SDN Adoption Solve Real-World Problems?” Melvin writes, “If you think software-defined networking is all hype and no substance, think again. SDN deployments could potentially solve complex resource issues, especially in segments like healthcare and education.”

InformationWeek’s Charles Babcock reports on Pivotal’s announcement to launch a cloud app development platform, Pivotal One. He writes, “the release of Pivotal One marks the first time a supported, on-premises version has been made available, giving companies the option of using Cloud Foundry for in-house development.” Over at VentureBeat, contributor Jordan Novet explains why Pivotal believes data and cloud technology go together.

InformationWeek’s Sue Fogarty explains seven essentials to software-defined networking. She writes that while SDN “may be the technology du jour,” it is still largely conceptual. The article goes on to “boil SDN architectures down to the essentials, including OpenFlow, SDN APIs, and overlay networks.”

NetworkComputing’s Natalie Timms explains how software-defined networking can be secured. She writes, “With the emergence of software-defined networks (SDNs), security must become a core component of the network. Network security can no longer be an afterthought, or added with the assumption that it will ‘just work’ on top of an existing network.”

Lastly this week, Forbes contributor, Joe McKendrick details how cloud computing can save the government $20 billion a year, citing a new study that suggests adoption of cloud offerings — particularly Platform as a Service middleware and application development tools — can cut the cost of U.S. government application development costs to the tune of $20.5 billion a year.

VMware Weekly News Recap: November 15

VMware News

*** Updated: Don’t miss our live Google Hangout on Dec. 5 at 10 a.m. PST to talk about the future of IT with futurologist Paul Saffo, along with a number of influential industry veterans and journalists.***

In VMware news this morning, Dan Wendlandt, director of product management for OpenStack at VMware writes a blog post titled “Advancing Support for OpenStack” on the VMware Company Blog. The post recaps announcements made last week by VMware at the OpenStack Summit in Hong Kong along with an overview of our OpenStack activities to date. (Did you know that we’re a top ten contributor to the OpenStack framework?)

Yesterday evening, VMware’s Erik Frieberg shared his perspective on Amazon’s announcement Wednesday that it has entered the DaaS market with its new product, WorkSpaces. Erik welcomes Amazon to the market, a move which validates VMware’s vision. He then goes on to illustrate why not all DaaS are created equal: “We believe customers get a better value, a superior product and a comprehensive, long term strategy with VMware.”

In other VMware news, the vCloud team announced on Wednesday that vCloud Hybrid Service has expanded support for healthcare customers, aiming to help organizations comply with HIPAA and the HITECH Act. The announcement included:

  • Completion of an examination of our information security program against essential elements of HIPAA and HITECH,
  • Availability of a Business Associate Agreement,
  • Availability of a whitepaper to support customers looking to achieve HIPAA/HITECH compliance

Lastly, the vSphere team unveiled on Tuesday that the company will resell Pivotal CF later this quarter as outlined at VMworld 2013 San Francisco. This was announced in conjunction with the availability of Pivotal CF along with the launch of Pivotal One Services. For more information on how Pivotal CF on VMware vSphere is making it easier for developers to build and deploy modern applications using platform as a service, read the blog post by Director of vSphere Product Marketing Michael Adams.

Industry News

In industry news, ZDNet analyst Dan Kusnetzky explains where VMware and Desktone will play in the desktop-as-a-service market following the recent acquisition news. Kusnetzky speculates, “It is likely that Desktone’s products will be attractive to even more partners now that VMware is behind them.”

Talkin’ Cloud’s Chris Talbot reports on VMware’s decision to partner with Mirantis to create new product offerings intended to help simplify the large-scale deployment of OpenStack-based cloud computing environments. In the article, Talbot quotes Boris Renski, co-founder and executive vice president of Mirantis: “[We] will be able to drive innovations that simplify the deployment of highly scalable and high-performing clouds.”

Bloomberg’s Dina Bass reports on Pivotal’s announcement to introduce new cloud computing software. In the article, she quotes Scott Yara, a senior vice president at Pivotal: “I have called it the Android of the cloud. The question is how do you build an open model that allows applications to move from corporate data centers to public cloud and across different public clouds?”

The VAR Guy’s Christopher Tozzi reports on Canonical’s new partnership with Pivotal to deliver its Cloud Foundry OpenStack implementation on Ubuntu. Tozzi writes, “It seems a safe bet that Canonical’s vision for Ubuntu OpenStack deployability goes beyond the specific partnership with Pivotal. Even though the company may be using that agreement to lead the charge, it is eager to build a strong partner ecosystem of OpenStack PaaS providers throughout the channel.”

Lastly, Datacenter Dynamics’ Penny Jones explains the software-defined datacenter. In her article, “Who Buys Software Defined?” Jones states, “The DevOps movement is paving the way for the software-defined data center, and this means the sale is starting to swing for vendors in the space.” She goes on to describe her takeaways after catching up with some of these vendors at VMworld Europe in Barcelona last month.

Stay tuned for our Weekly News Recap next Friday and be sure to follow @VMwareNews and subscribe to the VMware Company Blog to stay up to date with all VMware news and announcements throughout the week.

VMworld Europe 2013: News Summary from Barcelona

Today in Barcelona, CEO Pat Gelsinger and the VMware team made a series of announcements from the stage at VMworld 2013 Europe. Complete details of each announcement is highlighted in a post on the VMware Company blog and below is an overview of today’s announcements.

VMware Cloud Management Solutions: Announced today, new capabilities and enhancements across the portfolio of cloud management solutions will simplify and automate management of IT services for multiple clouds and platforms. New product releases include VMware vCloud Automation Center 6.0, VMware vCenter Operations Management Suite 5.8, VMware IT Business Management Suite, and VMware vCenter Log Insight 1.5. Read the full post VMworld 2013: Cloud Management Launch by Ramin Sayar, senior vice president & general manager of the cloud management business unit.

VMware vCloud Hybrid Service: VMware is expanding the vCloud Hybrid Service to Europe and will roll out vCloud Hybrid Service in the United Kingdom with a new data center location in Slough. VMware vCloud Hybrid Service is expanding in the US and this new data center addresses UK and European data locality, privacy, security and sovereignty. Also announced was the availability of the new vCloud Hybrid Service Online Marketplace, providing a platform where customers can discover, download, test-drive and buy solutions for vCloud Hybrid Service with access to 3,800 pre-qualified applications and rich online resources.

End-User Computing: VMware today announced the acquisition of Desktone, a pioneer and industry leader in the desktop-as-a-service space. End-user computing executive vice president and general manager Sanjay Poonen provides complete details in his blog post on the acquisition of Desktone. Additionally VMware is introducing new product offerings and capabilities across its end-user computing product portfolio to broaden IT support for the mobile workforce. New product releases include version updates to View and Mirage (Horizon View 5.3, Horizon Mirage, 4.3), ThinApp (version 5.0), new VMware Ready smartphones from Sony, the availability of the vSAN for Horizon View public beta and a new crowd sourcing feature in Socialcast.

VMware vSphere Data Protection Advanced: Included in the details of the Cloud Management news, powered by EMC Avamar, VMware vSphere Data Protection Advanced delivers industry-leading storage-efficiency for backups, unique capabilities to accelerate recovery and unparalleled integration with VMware vSphere. Announced today, VMware vSphere Data Protection 5.5 Advanced will feature new capabilities including network-efficient backup data replication, integration with EMC Data Domain, a new Microsoft SharePoint agent, and automated backup verification.

Subscribe to the VMware Company Blog and follow @VMwareNews on Twitter to stay up to date with the latest news and announcements from VMware.

vCloud Hybrid Service Now Available in Santa Clara, CA and Sterling, VA

I’m delighted to announce that VMware added new locations for vCloud Hybrid Service (vCHS) in Santa Clara, CA and Sterling, VA today. You can purchase cloud capacity in both locations immediately, benefiting from greater resiliency and proximity to your customers, partners and your existing data center locations. Pricing for both locations is identical to our current prices in Las Vegas, NV, and is posted on our website here.

We call each location a Region, and existing customers will see that we’ve added new sections to the web console to allow you to see regions and your virtual data centers across all regions. You’ll continue to get a single view of all of your cloud resources from the web console, and you can programmatically manage your cloud via the API URL shown in the console. Massimo Re Ferre, one of our consulting architects, has two blog postings on how to use vCHS via APIs here and here.

Today’s announcement was cross-posted on our vCloud blog. Going forward, make sure to follow the vCloud blog to keep you up to date with developments and new capabilities. We make updates to the service every 4 to 6 weeks, so this provides an important channel to keep you up to date with what’s new, and you can subscribe with RSS. We have a packed roadmap and we’re excited to be able to deliver far more rapidly than is possible with traditional software.

This week at VMworld Barcelona, attendees can learn more about vCHS in my Spotlight Session, Everything you wanted to know about vCloud Hybrid Service but were afraid to ask on Wednesday at 11.00. We tried something new this year, basing the content on questions asked by you, our customers, via Twitter and other online forums. It was the number 4 session by attendance in San Francisco, and I hope to see you in Barcelona. I’ll be answering the questions posed by customers online, and will be joined by Angus Gregory and Andreas Antoniou from London-based software company Biomni. They were one of the earliest customers of vCHS outside the US. They’ll talk about their experiences adopting the service and how they were able to improve responsiveness to their clients as well as reducing costs.

VMworld attendees can also take the full vCHS “Jump start”, five sessions designed to fit together to give you a complete understanding of how to get the most out of the service, from the basics to topics like advanced networking. You can also get your own hands-on experience with vCHS at the VMworld Hands On Labs.

Introducing vCloud Hybrid Service

Bill Fathers, senior vice president and general manager, Hybrid Cloud Services Business Unit, VMware

A public cloud without compromise. Today it becomes reality. We are excited to unveil vCloud Hybrid Service, an infrastructure-as-a-service (IaaS) cloud built and operated by VMware that will enable our customers to achieve the benefits of the public cloud with the applications, skills and management tools they already trust.  Built on the foundation of VMware vSphere® and leveraging VMware’s software-defined data center technologies, vCloud Hybrid Service will  provide an easy, fast path for VMware customers to achieve the agility and efficiency of the public cloud.

As we talk to customers, we consistently hear that they want the benefits of a public cloud environment, but can’t afford the risk, cost and time of starting over. They want a credible option that is built on trusted, enterprise-grade technology that can be easily deployed. They also want a partner who can give them a platform that delivers the agility expected by the business and the security and reliability IT demands.

We know there are many cloud offerings to choose from, but only vCloud Hybrid Service is built on the same platform that VMware customers use in their own data centers.  Those customers have expressed a desire for a cloud offering that is completely compatible with what they are deploying internally and is built on the trusted, reliable foundation they have come to expect from VMware.  And vCloud Hybrid Service was designed to support all of their existing applications as well as the development of any new ones – without requiring any change.

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