Cloud Panel: Life After VMware and the Future of Open Source

Cloud Panel: Life After VMware and the Future of Open Source

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So, we should start. Hi everyone, welcome and  thank you for joining us today for this very   special online panel. We are going to discuss  the most pressing questions about the biggest   topic in Cloud IT and those will be the changes  to VMware licensing and bundling with the Broadcom   acquisition. We want to discuss how it affects  us as technology partners, as business owners,   as cloud service providers, and so on. So, the  focus will be the future of your business. How  

it affects your business, how it impacts the  IT strategies for companies that are buying   and selling cloud. And of course, how any of  those changes have created an even more pressing   need for solutions that are based on Open-Source  technologies? My name is Rony Moyal, I'm your host   from Virtuozzo. We are joined today by three very  special guests. We have not in alphabetical order   we have Tim Timrawi founder and CEO of Sharktech.  Tim raise your hand. Hey. We have Cliff Greenberg   founder and CEO of Livewire and Jimmy McArthur  Director of Business Development at Open Infra   at the Open Infra Foundation. Before I let my  panel introduce themselves some house clearing.  

In this panel, we will answer questions that were  pre-submitted but feel free to send us additional   questions using the QA tool in Zoom if you want.  We can point you to where it is. If there are   still open questions after the panel. Please share  them with us, we will follow up by email later   on. One last thing before we begin this session  will be recorded, so you'll be noticed. We will   share the link of the recording to anyone that  was registered to the panel feel free to share it   with whomever was not registered but still need  the link for this recording. Okay, so we'll get  

started. Let me see kind of where we are. So, we  are at 62 participants I think it shows the level   of interest in those changes, the level of I would  say frustration and opportunity in those changes.   So, I'll introduce Cliff followed by Jimmy and  Tim. Cliff give us a few words about you. My name   is Cliff Greenberg. I'm the CEO and founder of  Live Wire Cloud we're an MSP-centric cloud service   provider providing open-stack, proxmox, and VMware  virtualization technologies in a private Cloud   configuration specifically to the MSP community,  so we have probably a very different perspective   than the other panelists based on who our  end user community is. Yep. Very diverse and   a longtime partner of Virtuozzo as well followed  by Jimmy. Yes, Jimmy McArthur with the Open-Infra  

Foundation. I do business development for the  foundation. I've been here about eight years and   my goal is to spend every day talking to folks  around the world that are using open-stack and   using open- infrastructure software and see how  the foundation can be of assistance. Thank you,   and Tim. Hi, my name is Tim Timrawi. I'm the  founder and CEO of Sharktech. We are a hosting   provider we've been in business for the past 20  years. We started with infrastructure as a service   provider with DDoS protection and we moved into  the Cloud solution provider and now we provide   the public Cloud solution services, and bare metal  services, and private Cloud. Thank you very much,   Tim. So, with that we do have a few questions  that we want to cover, or the discussion will  

have some core questions that we want to answer,  and the first question I want to kind of hand   it off to Cliff. Since I know your background, I  know the type of solutions that you've supported.   What are the main pain points that you've  seen from customers and partners of yours   with the changes in with Broadcom and  VMware and the bundling and prices? Well,   specifically I think the biggest pain is the  new pricing architecture and the degree with   which Broadcom came into the picture and put  aggressive time frames into the modification   of the licensure structure. So yester year before  the Broadcom merger everything was based on you   know vSAN size of pools and memory allocation  and had nothing to do with core count or CPU,   and today everything is based on core count  within each server. Initially there was only a  

single VMware partner tier, and I think one of the  biggest modifications is some existing partners   weren't even able to become resellers. They were  ejected from the community altogether and the ones   that made reseller status had to go and find a  premier partner to procure their licenses from,   so that's a very awkward go buy your licenses  from your competitor because you're unable to meet   the financial milestones created by VMware and  then of course the aggressiveness with which the   program was adopted and the lack of communication  across the industry when is my stuff going to stop   working? Is you know, are they going to honor my  current, you know, subscription program after the   merger? So lots of questions very few answers then  a lot of push back and then to throw insult to   injury they announced that they're selling off the  end-user community computing division to KKR, so   the VMware horizon is now an additional quandary  on top of you know your traditional Vcloud   director and Vsphere infrastructure solutions. So  a lot of pain for a lot of people I think the only   saving grace is they introduced another tier to  the partner communities that is a little bit more   cost-effective but it's caused people to think  dramatically about whether or not they're with   the correct solution and many people aren't going  to be able to afford the new pricing structure.  

And then Amazon was removed as one of the premier  partners, so we're going to see a lot of changes   with respect to the way VMware is adopted and who  is using it and how. Thank you. Tim, you want to   give us your perspective. Yeah, I think it's a  situation of the people that are developing the   software are disconnected from the people that  are administering the software and managing the   systems. There seems to be, it is a complex  system. The people that are administering it   are realizing that we're you know being stuck with  solutions that they might change on a dime based   on different corporate interests and we are left  hanging there trying to decipher complex solutions   and complex alternatives instead of you know  focusing on the business core, which is providing   the service to our customers and making sure that  our infrastructure is ready and available for our   customers or our businesses. It's been difficult  because VMware has been a trademark you know   system for the past couple of decades at least  and everybody seems to have you know reached a   point where we're relaxed with the system. It is,  I hope, going to be an eye-opener and able to help  

the community recognize where what is best for us  to move forward without being dependent on single   entities like VMware. Do you see those changes in  cost structure being rolled over to the customer   100% or being absorbed by the cloud service  provider? The cloud service providers are already,   you know, it's very complex time for us right now  and I am definitely sure that whoever is going to   be succeeding and adopting or understanding the  new pricing structures. There it's going to be   sent back to the customers whoever decides to  go into this the problem then is who is going   to be on the other side right who is going to be  ending up recognizing that hey we need to change   and investing their time and resources in finding  alternative solutions and recognizing the cost   effectiveness of the other solutions and seeing  that okay we're going to be able to compete and   that's a beautiful thing about you know CSP’s  right now. We are still a competitive market   obviously for us, not the top three providers, we  are still a competitive market and finding ways   to provide a unique cost-effective solution and  strong solution is still very important. We do get  

some feedback from other markets, so the Americas  the margins are as such that you know some will be   rolled to the customers. From our perspective some  will be staying within the CSP, so the margin will   shrink a little bit but there is enough to sustain  or for VMware to still be relevant, but we do see   in other global markets where VMware was priced  as such that it was just barely sufficient for the   CSP to make any margin because the customers will  not be able to pay more than what they were paying   and with the changes it kind of prices itself  out of the reach of customers even government   entities. Do you guys see that happening  here if you know whoever decides to stay with  VMware? I think I can answer that to some degree.  I really believe it depends on how you run your  

business to some extent. And Capex versus Opex  models and most people have adopted cloud in an   effort to move to a more Opex pay-as-you-go type  of situation, to be able to scale up and scale   down, and to afford themselves the ability to  maintain certain degrees of profitability through   this relationship with the cloud vendors.  And so much of that is being destroyed to   some extent by VMware's aggressive adoption of  three-year commitments as being the only mechanism   to bring your costs to a reasonable level and  so. Also paying for the full capacity upfront,  

so it's not pay-as you-go, it's commit to the  full capacity of your data center correct,   so that first tier of a partnership the premier  tier is 3,500 cores minimum 16 cores per server.   You can imagine we started to look at well what  if we took a processor out of the server you know   and had to start rethinking everything from that  perspective to try to create cost-effective models   for our MSP partners. And when you do that you  degrade the servers performance and the server   ability to support other infrastructure such  as memory, and disk, and PCI bus, and I mean   there's so many affiliated ramifications ripple  effect down the road, so today we're seeing like   on a pay as you go models no less than $35 a  core per month minimum 16 core per servers so a   single server is almost $500 a month in VMware or  lure at our cost under a pay as you go model and   that's a dramatic increase over the prior  licensure model where CPU wasn't relevant at all   in the VSCPP solution provider space. So in a way  it does play to the hyperscalers because it kind   of shrinks the benefit of Opex versus you know  hyperscalers, so correct if it was 30% or more   reduction in cost it shrinks that and it does call  for alternative for CSP’s to be able to maintain   reduce the cost and stay on the pay as you grow  versus buy the capacity and hope you can sell it   correct and then you know over subscription was  a possibility way back when but now none of that   is doable to some extent and neither is the  shrinkage model like what happens if you have   to lay off people you're still stuck in this cost  center at the resource pool that you committed to   so that's a difficult position to put yourself in.  Yep. Okay we'll move to the next question and I'll   start with Jimmy this time do you think that this  do you think that this has created a turning point   for adoption of Open Source based C so from all we  heard in question number one Jimmy you see that as   a motivation for CSP’ss for partners for customers  Enterprise customers to adopt open source or   open-stack? Yeah I think Tim put it best which  is you know it's eyes open a bit this year and   I think you know 2024 is the year we all learned  a valuable lesson which is proprietary and single   vendor open source software single vendor open  source software it makes your business vulnerable   right and I hope what we take away from the end of  the year is that multivendor open- Source projects   with a healthy ecosystem are the way forward you  know the question about you know locking in prices   with VMware for three years you know CSP’s have  to scale up their entire infrastructure based on   what their customer base looks like right and if  you lose one of those but you're still paying for   all that infrastructure for with a VMware license  you're out of business and so you know you you've   got to look at Alternatives you've got to look at  open-source alternatives and in my opinion I think   open sack is the way forward you know it's if you  combine open-stack and the situation with VMware   with other trends in the market like privacy and  data sovereignty and what we're seeing with the   need for greater compute power for AI workloads  open-stack is a natural fit for that kind of thing   and I think you know VMware for better or worse  has sent a message to the to the industry and I   hope everybody learns something from it. Jimmy you  really like took the words out of my mouth on that   one. I really hope so I hope we as a community  start recognizing the difficult positions we're  

putting ourselves in taking the easy way forward.  It is a problem and I hope we recognize this as a   problem and see alternative ways forward. What you  brought in with the AI situation is very important   do you want to end up in a position where you  are locked where you are unable to innovate on   your own when a new technology comes in? Do you  want to be in a position where you are dependent   on a close po Source kind of VMware solution that  will end up put you in a position well I have to   wait for them to develop this solution for GPU  for example, or I can work with I can work on   the open-stack solution that we have developed in  a unique way to provide this type of service cost   wise I mean if you are in a CSP service and you  see the price models that Cliff shared with us   and you think that this is okay I'm really happy  for you this is just not how our industry works   and this tells you the disconnect that VMware  has with the industry this is just not how our   business models ever work we are very scalable  we go up all the time we hopefully never go down,   but you know sometimes we have to be careful about  when we have to go down right we have to scale   down we have to be cognizant about what should we  be doing when we have to scale down in those kind   of scenarios and how difficult it is to scale up  and scale down and the pricing model which really   puts us at a disadvantage this is something to  be taken seriously. Yeah. Thank you guys Cliff   anything to add on this question? I think I'm  going to pass on this one because I for Bose with   the other ones but I will have stuff to contribute  later I promise I'm sure okay so we have our next   kind of item to discuss is considering the current  2024 state of the economy and the it Trends in   general how does open-stack open source provide  a way forward to the business so we answered some   of it but Jimmy I want you to elaborate a little  bit more on that. Yeah, sure and I mean open-stack   is a cloud computing platform that provides  infrastructure as a service whereas you know   Vsphere is a virtualization platform and it's been  a fine solution for a lot of folks for a long time   but if it's not cost effective you've got to start  looking around and I think further you know in   this day and age you should be going cloud native.  It's kind of the natural way of things right now  

and avoiding vendor lock in you know you look no  further than you know obviously VMware, but also   what recently happened with Hashi Corp like we're  in a situation where you know you've got to be   looking at open source and in the same way that  you would like Linux is the defacto open-source   OS like why would you look at anything else I mean  Linux won and I think I hope we look back and see   that everybody has moved on to proper open source  solutions for their infrastructure as well. Thank   you. Tim you want to add to that? Yes, that's also  again Jimmy that's a great point so you know when   we started with Linux long time ago and FreeBSD  and all of those we recognized the open solution   that it provided when now we have reached the  point where we are looking for something that   orchestrates multiple systems at the same time  with infrastructure of networks servers storage   nodes and all of that and we have reached a new  layer in systems management open-stack is key on   that the same as Linux was for operating systems  our ability to innovate on open-stack is similar   to how we were able to innovate back in the day  on FreeBSD on Linux on open BSD without you know   the support of without the FreeBSD for example  Sharktech would not have existed in 2002 when we   when we took on dos protection as a service as  the first company that actually provided that.   And now we're doing the exact same thing and we're  really excited and for the first time you know in   over a decade we our my team has been absolutely  enlightened and happy that we are able to actually   innovate again and we are able to create unique  solutions that puts us out there on a different   level and yes partnering up with companies and  now I'm going to put the plug for Virtuozzo.   Partnering with companies like Virtuozzo that have  dedicated themselves to creating solutions that   are that makes the adoption of open-stack possible  is an important step so open-stack as many know   okay it's not easy it's getting easier it's  getting better but you definitely need guard   rails you definitely need help moving forward  with it and this is when we went with we decided   for years ago to go with Virtuozzo and Virtuozzo  has been that for us the solution that they have   created based on open-stack has been tremendously  helpful for us it provided us the path forward and   the opportunity for us. I would add to that  Tim that there are a number of distributions  

out there Virtuozzo being one of them and for  folks that do need those guard rails that's the   beauty of open-stack right their distributions  their Enterprise grade you can set it up and you   can have the kind of service that you might  have expected from VMware back in the day   but there's also you know just pure open-source  vanilla open-stack and for those folks that are   capable and are interested you can also set up  and run a data center with a few engineers you   know it doesn't there's this idea that open-stack  is so complicated and so hard that you've got to   have this team of 20 or 30 people to manage it and  20 or 30 people to set it up, but that's just not   reality anymore. No, that's a decade ago. Yeah,  right. Absolutely, so a commercialized way I think   that Virtuozzo and few other ones we're not only  one in the market there are aspects source that   you need to commercialize and commercialization  of a product is not in the nature of Open-Source,   open-stack it's more about open it's here  is the kind of the source code here are   the tools to create your own cake just and if  somebody is taking all those great ingredients   and making something that is easy for you to go  to market and reduce your operation cost because   you need smaller team you can focus on selling  to customers collecting from customers I think   there's a service for the likes of Virtuozzo and  again we're not alone there that commercializing   open-stack open source. Absolutely, so one sec  like Jimmy about that so basically we were able   to create a billable hourly rate system a Cloud  solution, a virtual data center environment for   our customers and build them on resources used  on hourly basis basically utilizing the Virtuozzo   tools and open-stack for our customers, so this  has allowed us to bring it on to the commercial   side significantly easier than we have if you  ever have gone straight out to open-stack and   develop and took the time to actually develop the  system directly ourselves. You know, right now we   are at the point where it's a double it's a couple  of clicks on our website and you're done you have   an open Cloud, open-stack solution developed and  provided to you as a customer and you go with it,   and this is amazing. I don't think we would  have been able to do that without the support   of Virtuozzo or open-stack. Thank you. Yeah, I  think I have a slightly different perspective   Ronnie than the other guys. I mean for me, I  view VMware as a virtualization technology,  

but not a multi-tenant Cloud infrastructure  solution and VMware doesn't scale massively.   It can certainly scale in a hyper converge  configuration to some extent but nowhere near   the capability and the ability to introduce  heterogeneous hardware into the stack. VMware   cannot do that and so this is one of the biggest  differentiators between open-stack and VMware.  

Open-stack is a multi-tenant multi-tiered solution  with wonderfully written SDKs and you guys help   provide those and the proper API interfaces  for it to do it, but the biggest difference is   open-stack scales massively and just gets stronger  and more stable as you do so in better performance   better everything. Tiers of discs I think the  biggest challenge is it's not open to every   other technology out there so there's going to be  technology adoption that are going to influence   some of your strategic decisions in terms of  embracing a virtualization environment right   if you have expertise. I don't think it's part of  the service quotation that VMware is doing to open   open-stack the disruption will cause more of the  ecosystem providers to reconsider open-stack to   be part of open-stack to augment open-stack rather  than focusing on a company that have an interest   to grow which is fine, but have an interest to  have captive audience and to do that you make   sure that you are able to sell them Vista you are  able to sell them products that are working in   your closed garden which is all fine because  this is the motivation of the company that's   why they were brought by bought by Broadcom,  but if you if you bring open source open-stack   into that it's a more noble approach because  it's not about serving one market segment it's   not about serving the need or of the you know the  investors of Broadcom; it's more about serving the   community and if you take the flavor of open-stack  that you need and commercialize it correctly you   answer more use cases than the one that are driven  by your investors. Honestly I don't know why   Broadcom bought VMware but, that's well the only  reason a chip manufacturer with buy virtualization   technology is if they want to embed the technology  into the Chip and latest release this is Broadcom   might buy Intel which that one blew my mind  so that's the latest press release that I read   the other day see I could I could see that like I  could see that fitting more the Broadcom mentality   like I could see them buying Cisco for example  maybe that's like that makes sense. Buying VMware   has never been it never made sense to me it's  but then again it happened and doesn't need to   make sense to anyone, I guess. Time will tell time  will tell. So actually, that leads us to the next   has been telling do you think that Broadcom VMware  changes have created lasting distrust in the real   stability of established platform this is I hope  so perfect segue to that so well I would to. Oh,  

it's Tims turn? Okay good Tim I really I really  hope so you know I'm I really hope that it's   we're reaching the point that we're starting to  recognize how important it is to be cognizant   of the systems that we're using and who is behind  those systems and knowing that you know building a   system that requires specialty hardware specialty  software and being dependent on those and then   saying oh yeah now they're scaling up the price  on us and then increasing the prices on us and   then we're like we're left with a with a situation  that we simply cannot afford because they do not   recognize the type of businesses and the models  that we are providing that's a big problem and   I hope we have reach the point that you know  we learned our lesson and we're starting to   look seriously at open-stack as we did for Linux  back 20 years ago. Okay and Cliff your chance. I   think that you know past behavior is a wonderful  indicator of what your future behavior is going   to be and if we look at Broadcom's past behaviors  and the companies that they bought dismantled and   practically destroyed for a piece of technology  that they were interested in and the list is   fairly lengthy you know computer associates  is the one that comes to my mind initially,   but all of that all those products have you know  evaporated from our technology from the technology   ethers. So, I think the motivating factors of an  organization like Broadcom are kept very close to   the heart and it's not going to be divulged to us  and we're not in sync with them. The communities   that support and provide these services have  different motivating decision-making ideas and   concepts about providing you know infrastructure  as a service and another we are not aligned with   the vendor in our goals and that's the biggest  challenge and I think we were previously aligned   with VMware. I think they recognize their own  strengths to some extent but now I have zero   confidence in the future direction of the product  and we're already seeing them tear it apart even   further and I think I think they missed the boat  in some regard a Tanzu to run Kubernetes and   Docker containers within VMware was a joke I mean  I don't know anybody that embraced it or used it,   but here's another big differentiator with  regards to open-stack it natively supports   you know containers and microservices, which  we all agree is you know is the serverless way   of the future. Right? And so if you don't have  a technology platform that can support future  

solutions that are eminent and being developed  every day then people aren't going to have a   choice but to jump ship and find something that  works to meet their needs at the end of the day. I   absolutely agree with that go ahead no I was just  gonna say it's you know as I mentioned earlier if   you want to go cloud native open sack is the  way to go and you know what we're seeing and   what we see with our users is everyone's running  workloads they're running Kubernetes on top of   open-stack it's a natural fit and you know who's  not running Kubernetes these days and I think you   know that's just the way of the future and you  know unfortunately I think you know it's a sad   tale about VMware but I think it's an opportunity  for open source communities to embrace a bunch of   new users and show people that it's the right way  to move your business forward. Okay now with that   do you see any other leading technologies that  kind of on the precipice of being bought, sold,   changing their kind of DNA is it is it so you know  I don't want to name names but there are few other   technology is around virtualization that have kind  of the same approach you know proprietary hardware   closed garden do you see this wave of companies  being bought changing their DNA, moving from focus   where the a customer partner being the focus to  let's turn it into a cash machine? This is the way   these days, unfortunately, you know. There's a lot  of investors out there there's a lot of business   opportunities out there that they're looking at  a well-established software development companies   to take them on to take them on and basically  take on customers that are already locked in a   solution and taking advantage of it for as much  for as long as they can for as much as they can   it's unfortunately we're seeing it and it's not  only in you know virtualization platforms it's   in a lot of software as a service providers  situation and a lot of customers are ending   up being locked in these situations with really  even when they have an alternative it's extremely   difficult to see it because they are so busy with  the current situation that they are in that it's   difficult for them to see alternatives. Yeah, and  I think it's also I was going to say I think it's  

important to understand why multivendor  open-source projects in a healthy community around   an open source project is the most important thing  when choosing an open source project or choosing   software. You know proprietary is one thing but  when you have a single vendor open source project   that switches the license on the Fly and all of a  sudden you're just as locked in as you would have   been with VMware that's bad as well and so you  know companies that are kind of this is why in   my opinion you know companies that are kind of  masquerading as open-source but they're really   not they don't have an ecosystem built around it  they don't have other partners and organizations   committing to that open-source project and  keeping it healthy then you're going to run into   that problem and you know this is the reason that  pure open-source is the best way to manage to make   software decisions. So, Jimmy, your best advice to  any partner that is looking to move from VMware to   any other solution is don't make the same mistake  twice. Don't jump from one closed garden to  

another closed garden to from one company that was  ripe to be sold to another company that is ripe to   be sold with a closed garden. That is absolutely  my position, and I would say also like there's   you know people kept VMware because it had first  of all it was around forever you know as Cliff   points out there's a big ecosystem around it. I  think those things and that security of having   the service contract and things like that those  things exist with open-source projects it exists   with open-stack you know there's a large ecosystem  around open-stack that does things like backup,   monitoring, metering storage, you know  data recovery those things all exist, but   it hasn't been at the forefront of a lot of those  organizations that they haven't been pushing it   because open-stack for lack of a better word has a  tough reputation and it's something that we at the   open infer foundation and we with our ecosystem  partners are really trying to overcome and I   hope that this is an opportunity for people  to see that this is a safe place to put your   workloads. Open-stack is a safe place and it's  a great place for you to run your infrastructure   so hopefully that message gets through. Yeah,  I'm in agreement with Tim. I mean I think our   job as cloud service providers is to educate  our potential customers on the capabilities   and the best practices to embrace Open-source  technology and I think security is tantamount   to any solution that's out there and I have to  tell you that the virtuoso open-stack is hardened   and has withstood the test of time with respect to  vulnerability and assault and even though you can   layer additional security on top of it you know  that is a really important component to providing   cloud services. I can tell you that the moment  you're exposed and have compromised customers,   yeah that's a very bad day for everybody.  Absolutely Cliff I'd like to add on to that I mean  

this is the most important part right there for  us you know security is a multi-layered approach   security is being able to use independent systems  to protect each other to create a layered approach   into security using something like open-stack we  are able to utilize you know third-party software   third party firewalls appliances in front of these  systems to protect them to analyze the data going   to them and they are completely independent of our  open-stack environments right and we are able to   say okay this is something that right here so in  case of any vulnerability that's going to happen   in the stack it is segmented and we create we  create basically air gap situations where we are   able to address the issues and this is we are able  to do that with open-stack solutions right we're   able with open-source solutions we are actually  able to create unique solutions that us the ones   in the trenches are seeing and recognizing and  we do not have to go back write a recommendation   to a VMware that in all likelihood is not going  to align with their business models or something   they're going to be like, oh yeah we can create  a new system to add on top of this because hey   that's another revenue stream for us. No, we  are able to work with the open-source community,   we are able to develop our own solutions and bring  it in and be a unique solution provider out there   as well. Now quick question. So, the wave of  customers who are looking for alternative to   VMware start somewhere around November 2023 with  the changes being announced a little bit before   but kind of the big wave the front of the wave  was November till today. Do you see the community   of VMware customers or partners that are looking  for alternative. Is it ending? Is it in the midst  

of it? is it depending on where your contract is  done when you need the hardware refresh what's the   feel? I think I can take that one I think the big  fear was what's going to happen on like I think   it was originally April 4th is when you know the  transaction concluded and supposedly the former   licensure was completely supposed to be coming  null and void. A number of European organizations   got together and started a class action against  VMware and they really ruffled the waters and   then VMware started to backpedal a little bit and  started pushing out deadlines, so far we haven't   seen anything be rendered un-operational so we're  not seeing license revocation or anything ugly   like that so I think that the I think they're  going to leave it alone and I would recommend   that they leave it alone and let people do the  appropriate level of due diligence on alternative   solutions if cost is the you know driving factor  behind the change that they want to see coming   forward. And then they created, I didn't get  to mention this before they created the Vsphere   Foundation licensure program which is a much less  expensive tier to the cloud foundation tier of   licensure. And so there's still a very a lot of  questions in the air as to where you can adopt  

each one of these two license programs and how you  can use them and who's allowed to use them and so   on and so forth I think much of those questions  are still trying to be unraveled from the licensed   providers. And remember now you're going to a  premier provider who has to go to VMware or to   a tier above him and then, so they VMware pushed  or Broadcom pushed all of the support down to the   partner community that is a major modification  to what they were doing before and hence you've   seen huge layups within the organization and I  think that's just going to be their demise to   be honest with you because what compelling reason  does my competitor have to properly support me or   provide the correct answers to remedy a problem  when you know. I think it's a preposterous design   in the first place. But I it was a stop gap it  wasn't meant to be to start with they created a   vacuum and then they figure out okay there's a big  vacuum what do we do in the meantime before we do   the real thing and then they put those aggregators  or in between tier just to help, I wouldn't call   it to help, but to help themselves prevent even  bigger erosion. Do you guys see it the same way?   Yeah, I think going back to your original question  Rony, I think that you know we're the start of the   wave VMware has for 45% market share and you  know we're seeing interest from every company   that we talk to and in fact we recently pulled  our member companies and 82% of them have already   received interest from organizations seeking a  VMware alternative and 61% of them have already   migrated VMware customers to open-stack and we're  seeing interest globally that's 13 countries   in five continents and I think you know we're  at a spot here where we're going to see massive   interest coming in the through the rest of 2024  if not 2025, that's my opinion. It's definitely   I think it's the time of the opportunity right  like the time for opportunity for people that   are looking, recognizing what going on and  deciding okay this maybe is the time for us   to take action the earlier you are and this the  better you are positioned in the market and the   better that you are at adopting this technology  and benefit your benefiting your business. Yeah,  

okay thank you guys very much we do have few  questions from the audience if you don't mind   I'll go through them and we'll try to answer  them again if anybody at the audience have more   questions please feel free to post them if we want  to have time to answer all of them we will answer   them via email. So VMware has been a market leader  in virtualization this is a question that we got   earlier today VMware has been a market leader  in virtualization for nearly two decades and it   integrates with many other software and hardware  products how long will it take open source   community to replicate the features functionality?  Jimmy, sorry Cliff you want to start? Sorry I was   typing an answer could you repeat that question?  fare has been the market leader in virtualization   for nearly two decades and it integrates with  many other software and Hardware products how   long will it take open source to replicate? So  that's a tough one right this is all about which   vendors want to hang their hat on a cart right  and this was what I was inferring to before in   our world, managed service provider world, as it  professionals we hook ourselves to various carts   and create tool sets that we educate our team  members on and invest time and energy in embracing   and learning and optimizing and using those  tools to the benefit of our and user customers,   right. And so when you make those investments  in tertiary products that are married to your   virtualization technologies you're you’ve locked  yourself in to some extent there monetarily and so   it's got to be us who drive the change and put the  requests out to the Veeams of the world and Zertos   and you know whatever other you know tertiary  add-on third-party technology you've adopted   RMM and PSA tools and other things I mean at the  end of the day we have to continue to support our   end user requirements and make sure that their  stuff is rock solid and safeguarded and the   virtualization technology shouldn't really be the  biggest component in that decision-making process   right because at the end of the day, I think  reliability is your number one. Reliability and   security are your number one considerations and  I would add scalability to that. I agree except  

that the S&P Marketplace is typically a smaller  ecosystem and so scalability from that perspective   isn't as important to the end user. There are  Enterprise grade solutions out there that need   massively scalable Solutions and yes Virtuozzo  open-stack has the ability to scale to thousands   of nodes and there is hardly any other products  out there today that can accomplish that objective   so do you thank you Cliff do you see the pressure  building up on the likes of VM Zerto and others   to adopt open source as a venue for their  products? Where if we look at Vim for example   they were very much locked into VMware they had  no interest they actually actively pushed back on   adopting open-source or being open to open-source  do we see pressure mounting on those companies   to adapt open source to open themselves to  open-stack? It's a business you know I mean   at the end of the day it's a business right is  it in your business interest as VM to actually   have an open-source solution and to what end is  that are you going to end up closing that open   source solution eventually we've seen that happen  before on Linux as well it's at the end of the   day it's a business so if you're going for that  I hope you that your trust is put in the right   place here because at the end of the day it's  a business model. Yeah, that's very concerning.   Dirty secret VM actually has open-stack backup,  so just for the record its they just don't talk   about it but… Well they do have it but it's  agent based not agentless so to for 100%   replication of what they've done with VMware if  there were would have been 100% replication into   open stack I think that it will allow them  to maintain their market domination if not   they will lose a lot of customers yes. I mean I  think that's the way the market's going and it   that's to Cliff's point is it's these companies  are going to have to adapt right as open sack   adoption increases I would like to address your  original point though Rony about like how long   does it take to replicate these features for  open-source? And I would argue that open-stack   is already there you know there it's not maybe  it's not agentless beam but there are backup   solutions there are recovery solutions there are  storage solutions monitoring solutions like that's   all this all exists and in fact open sectors had  its 29th on time release built by more than 70   organizations. I would say that that open-stack  is as rock solid and flexible and nimble as and   if not more so than VM wherever was. You know  it's I wouldn't say that it's because or it's for  

any lack in open stack it's a just a commercial  business decision by the likes of him and others   that they want to be able to maintain their close  garden relationship with VMware but now where this   garden is kind of breached and customers are  running away do you want to lose this market   share just because of convenience I or do you want  to open yourself up? For sure open-stack have all   the features to bring in the likes of women  to enable their functionality on open stack,   but it takes two to Tango in this case we have  another question does open stack have a bright   future after red hat gives up supporting it in  favor of open shift? Jimmy, I think I'll hand it   to you. Sure, so first would say that you know  as I mentioned open-stack is mature and fully   baked and we've got a broad ecosystem with the  support of over 700 organizations and a community   of 110,000 people that are working on looking at  using part of the ecosystem. It's not just red   hat that is part of open-stack now red hat played  a big part in it sure but so have organizations   like over the years Rackspace, Intel, Vex host. I  mean the amount of contributors and the amount of  

organizations that have been a part of building  the open-stack software is huge I would also add   open shift runs on open-stack or at least open  shift can't run without open-stack so it's to   me that's kind of a non- question, but I get that  that's the market perception that yeah and also I   think open-stack reached a momentum and a critical  mass that is self- sustained so it does require a   lot of support from other technology providers,  but it can diversify with technology it can grow   on its own inertia. Yeah, absolutely. Yeah. So,  we are about four minutes to the hour and we have   plenty of questions so we'll answer the rest  of the questions and the ones that are in the   webinar itself via email via communication that  we will send to you. With that I would like to   thank my panelist partners panelists for their  time and the audience of course thank you for   taking an hour from your time and joining us. We  had at the top we had about 76 participants from   across the world. That's quite surprising. I know  that it's not a very comfortable hour in a lot of   other time zones, so thank you all for joining us  and we will try to make more of those webinars to   kind of educate on the progress of open-stack  and how we can commercialize and drive a better   adoption of open-stack to the customer needs.  Thank you guys. Thank you. Thank you everyone.

2025-01-02 23:52

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