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Bob Venero, the president and CEO of Future Tech Enterprise, a Holbrook, N.Y. VAR 500 power, said he doubts that EMC and VMware will do anything to endanger the astronomical sales being powered by HP -VMware virtualization solution.
"The amount of HP server infrastructure out there dwarfs anything Cisco has out there right now and probably will in the future," said Venero." VMware and EMC are going to be somewhat like Switzerland in this deal. They have to be because there is too much for them to lose by cutting off or hurting HP as a partner here. Is VMware EMC going to walk away from that business for the potential that the Cisco solution is going to take off?"
The percentage of revenue VMware gets from its Cisco relationship is miniscule, while the HP partnership is a huge revenue generator for VMware, said Mark Gonzalez, president of Nth Generation, a San Diego-based solution provider and HP partner.
For that reason, Gonzalez said, partners should ask VMware a couple of questions.
“(Why are there) so many joint announcements between Cisco and VMware if their market share was so low? Aren’t you concerned what that might do to your relationship with HP, IBM, and Dell? It just feels like the risk/reward ratio is just not there, he said.
VMware has no choice but to work with HP or risk loosing a big part of its market share, said Dhruv Gulati, executive vice president of Lilien Systems, a Larkspur, Calif.-based solution provider and HP partner.
This is especially true as VMware moves from its role as the company that spurred the growth of the virtualization market to just another top vendor, Gulati said.
“Around three to four years ago, VMware was it,” he said. “But now the market is maturing. It’s not the game changer it once was.”
That role will continue to change as companies like HP are able to increasingly work with alternative partners such as Microsoft, and increasingly develop their own technology that virtualizes more of customers’ IT infrastructure, Gulati said. He cited as an example HP’s Virtual Connect, which virtualizes part of the networking infrastructure, as well as other technologies that virtualize applications.
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