VMware's Private Cloud Pivot: What IT Leaders Need to Know

The technology landscape is constantly evolving, and VMware has undergone a significant strategic shift in recent years. Once known as a leader in hybrid cloud virtualization, the company is now doubling down on its private cloud offerings, presenting both opportunities and challenges for IT decision-makers. 

VMware's pivot towards private cloud is driven by a fundamental change in the company's market positioning. Rather than positioning itself as a hybrid cloud provider, VMware is now laser-focused on delivering a comprehensive private cloud solution that can rival the capabilities of public cloud platforms. This shift is rooted in a belief that public cloud offerings, while attractive in certain use cases, can be prohibitively expensive and lock customers into vendor-specific ecosystems. By contrast, VMware sees private cloud as a more cost-effective and flexible solution, allowing organizations to maintain greater control over their infrastructure and data. 

To understand VMware's private cloud strategy, its important to first define what we mean by "private cloud." In this context, private cloud refers to an on-premises, software-defined data center (SDDC) that functions within a cloud operating model (e.g., self-service provisioning, automated resource allocation and pay-as-you-go billing). 

Unlike traditional on-premises infrastructure, a private cloud is designed to offer the agility and scalability of public cloud, but with the added benefits of increased security and visibility, data sovereignty, and cost control. This model appeals to large, enterprise-scale organizations with multiple business units and a need for a more centralized, cloud-like operating model. 

Should you buy VMware's private cloud solution or build your own? 

When it comes to building or buying private cloud infrastructure, IT leaders must consider several important factors. Building a private cloud from scratch is an extremely complex and costly endeavor, requiring significant resources and expertise. Conversely, purchasing a private cloud platform, such as VMware Cloud Foundation (VCF), can dramatically decrease the time needed to architect, design, validate and operationalize the overall environment. Nevertheless, it is important to recognize that adopting a platform like VCF still necessitates substantial effort and planning.

While VCF offers a solid foundation, IT leaders should be aware that there are essential components not included in VMware's offering that will inevitably be required to fully realize a private cloud environment and can vary depending on the specific needs of the organization. It is imperative for organizations to understand that purchasing and deploying a platform like VCF alone does not equate to having a complete private cloud solution. Thoughtful consideration must be given to the peripheral services and integrations necessary to support and enhance the core platform. Examples of these additional items include certificate authority, identity and access management, backups, cyber resilience, etc.

Navigating the transition 

For IT leaders considering VMware's private cloud offering, it's crucial to carefully evaluate the potential benefits and drawbacks against their organization's specific needs and constraints. While the private cloud model may offer significant advantages in terms of cost, control and security, the transition can be complex and disruptive. 

To navigate this transition successfully, organizations should consider the following steps: 

• Establish clear and measurable goals:  The possibilities are near endless when building a private cloud. Avoid scope creep by having defined outcomes that are written down and can be validated.
• Assess IT maturity and readiness: Evaluate current infrastructure, operational processes and organizational culture to determine if a private cloud approach aligns with the organization's goals and capabilities.
• Understand the total cost of ownership: It is important to factor in not only the upfront costs of the VMware solution but also the ongoing operational expenses and the potential need to replace existing tools and systems.
• Evaluate vendor lock-in risks: Carefully consider the long-term implications of committing to VMware's private cloud stack and how it may impact the ability to adapt to future technology changes.
• Prioritize workloads and use cases: Identify specific applications and workloads best suited for a private cloud environment and consider how they align with the organization's strategic objectives.
• Develop a comprehensive migration plan: Establish a clear roadmap for transitioning to the private cloud, including timelines, resource requirements and change management strategies.
• Adopt a cloud operating model: In a cloud operating model, business units must adapt to the capabilities of the cloud platform rather than expecting custom solutions from IT. This requires a cultural shift, where business units work closely with IT to leverage the cloud's features and make necessary compromises. Plan for the needed operational changes and train staff to embrace a new way of managing and monitoring IT services in a cloud environment.

By taking a thoughtful and strategic approach to VMware's private cloud offering, IT leaders can navigate the challenges and capitalize on the potential benefits. 

The future of private cloud 

As VMware continues to refine and expand its private cloud offerings, it's clear that this model will play a significant role in the company's long-term strategy. For organizations that are well-suited to the private cloud approach, the benefits can be substantial, including improved cost control, enhanced security and greater operational agility. 

Looking ahead, the private cloud landscape will likely continue to evolve. As VMware refines its private cloud platform and integrates new capabilities, organizations will have an increasingly robust set of tools and services to choose from. This could open the door for more widespread adoption of private cloud, as the barriers to entry become lower and the benefits become more tangible. 

At the same time, the competition in the private cloud space is likely to intensify. Other private cloud solutions, such as HPE GreenLake and Apache Cloudstack, have already established their own private cloud offerings, and they will undoubtedly continue to innovate and refine their solutions. This could put pressure on VMware to stay ahead of the curve, both in terms of product capabilities and pricing. 

Ultimately, the success of VMware's private cloud pivot will depend on the company's ability to address the key challenges and concerns that organizations face. Offering a seamless, cost-effective, and low-risk path to private cloud adoption can position VMware as the go-to partner for IT leaders looking to harness the power of cloud-like infrastructure on their own terms.