VMware Has Tougher Fight In Store After Microsoft And Oracle Partnership
June 29, 2013
Grazed from Trefis. Author: Editorial Staff.
VMware, which is already grappling with slowing growth due to a number of reasons, has one more reason to worry. This week, one of its major rivals, Microsoft (NASDAQ:MSFT) has announced a collaboration with Oracle. As per the terms of the deal, Microsoft’s Windows Azure cloud-computing service and Hyper-V virtualization software will be supported by Oracle’s Java, Database, Linux and WebLogic Server.
The move will improve Microsoft’s public and private cloud offerings vis-a-vis VMware and could present new challenges for the latter. The business environment has weakened in the U.S. in the last couple of months due to budget sequestration even as persistent weakness in the European markets has been weighing on the growth. Dell recently announced that it would cease its VMware-powered public cloud service…
Gartner’s Magic Quadrant report states that virtualization workloads will grow five-fold by 2015, and this is a very large growth opportunity for companies like VMware and Microsoft. [1] Competition from Microsoft, Citrix, Oracle and more recently Openstack has already taken some market share away from VMware and we expect this trend to continue. However, according to a recent survey, VMware continues to remain the preferred private cloud supplier with Microsoft’s Hyper-V coming in at second place. [2] Further, open source cloud initiatives like Openstack have not received traction as strong as expected. [2] VMware still holds about 60% market share among medium-sized companies as well as a decent market share among large companies…
Read more from the source @ http://www.trefis.com/stock/vmw/articles/193653/vmware-has-tougher-fight-in-store-after-microsoft-and-oracle-partnership/2013-06-28