HP CTO Martin Fink: 12 Reasons Cisco's Intercloud Is A Bad Bet

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Challenging Cloud Economics For Cisco, VMware

Increasingly customers are saying, 'Why would I pay for a virtual machine? It is commodity. KVM gives me everything I need, so why would I go pay for that?'

So you get the cloud economics. So the challenge that I think Cisco and VMware are going to run into is when a customer goes to actually build a full cloud at scale with tens of thousands of virtual machines, for example, and then build the app, the economics will start to fall apart because you can't charge the traditional license fees that their whole business model is built on.

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