Constellation Insights

VMWare launches on Amazon Web Services: After shuttering its own public cloud plans, VMWare inked a deal last year with AWS to implement its software-defined data center computing fabric on the cloud giant's server farms. Now the first delivery of that plan has arrived:

VMware Cloud on AWS is powered by VMware Cloud Foundation, the unified SDDC platform that integrates vSphere, VMware VSAN, and VMware NSX® virtualization technologies with VMware vCenter management. This means customers can use familiar VMware tools to manage their applications, without having to purchase any new or custom hardware, rewrite applications, or modify their operating model. With VMware Cloud on AWS, customers can leverage AWS's breadth of services, including compute, databases, analytics, Internet of Things (IoT), security, mobile, deployment, application services, and more.

VMWare made the announcement at its VMWorld conference in Las Vegas. Initially, the new service will be available in AWS's US West region with more to follow during 2018, according to a statement. Early customers include Cerner, MIT, Sysco and Moody.

POV: Along with full global availability, VMWare is still working out its pricing model for the service, which means many initial deals will be on the smaller side until enterprises get a better sense of both its robustness and how term pricing could benefit. Right now, it's priced hourly according to active usage, with one and three-year subscription options coming later. Customers would realize significant savings over on-demand pricing, with up to a 50 percent discount for a three-year deal, according to VMWare's pricing page. VMWare also wants to incentivize existing on-premises customers, as it will offer discounts to those with on-premises vSphere, NSX or vSAN licenses.

What enterprises should watch for now are the experiences of early adopters, says Constellation VP and principal analyst Holger Mueller. "If this fully works, CIOs have no excuse in regard to moving VMWare loads to the cloud," he says. "But let's see if this works." After all, he notes, customers weren't eager to adopt VMWare's failed attempt at public cloud, vCloud Air.

Oracle hiring up for the cloud: When it comes to accelerating cloud revenue growth, the best answer is attracting the right talent, and lots of it. That's what Oracle believes, in any case. The company said this week it will hire more than 5,000 engineers, consultants, sales and support personnel into its cloud business.

Under the direction of CEO Mark Hurd, Oracle had already been hiring and training new college graduates as cloud salespeople. That will continue, but the hiring push is also targeting experiences sales staff and engineers, Oracle EVP Joyce Westerdahl said in a statement.

POV: Cloud revenue shot up 58 percent to $1.4 billion in Oracle's most recent quarter. That represented 13 percent of Oracle's overall revenue. In contrast, new on-premises license sales were down 5 percent to $2.6 billion, but maintenance revenue actually rose 2 percent to $4.9 billion—46 percent of overall revenue.

In short, while Oracle is keen on growing cloud sales, on-premises licenses and maintenance remain lucrative and substantial businesses. Oracle has crafted its new-hire training program carefully, with seasoned account executives skilled at negotiating complex, multimillion-dollar on-premises deals essentially mentoring green salespeople while sharing in their success.

Constellation believes, however, that the best sales tool is the ability to point to successful customers. With Oracle's massive OpenWorld conference coming up in about a month, it will present an opportunity for the company to do just that.

Panelists resign from Trump's cybersecurity council: Eight members of the U.S. National Infrasructure Advisory Council have resigned, saying that recent actions by President Donald Trump have threatened the nation's cybersecurity. In a group letter obtained by Nextgov, the departing panelists explained their rationale:

Your actions have threatened the security of the homeland I took an oath to protect. These actions include your remarks given at a press conference on infrastructure reform on August 15,2017. When asked about the horrific violence in Charlottesville, you failed to denounce the intolerance and violence of hate groups, instead offering false equivalences and attacking the motives of the CEOs who had resigned from their advisory roles in protest. You have given insufficient attention to the growing threats to the cybersecurity of the critical systems upon which all Americans depend.

POV: The departures represent more than 25 percent of the panel's membership, but are to some degree partisan in nature. At least three Obama-era officials are among the ones leaving. Trump has also taken recent steps to highlight cybersecurity as a priority, elevating the Pentagon's Cyber Command to a more prominent organizational status. Still, with cybersecurity being a more important topic by the day, any sort of political turmoil is counterproductive to the mission. Here's to hoping the panel can be restaffed quickly with a bipartisan mix of officials capable of working well together.