Partners said the VMware Cloud On AWS offering is destined to reshape the cloud landscape with pricing that will appeal to customers evaluating public cloud and private cloud alternatives.
The joint service beats on premises private cloud total cost of ownership, and is even in line with public cloud options including AWS, according to partners who have evaluated the pricing model.
Datapipe, an AWS premier partner and VMware cloud provider, said an intitial analysis of the price sheet shows the new offering is "competitive with cloud native and cheaper than on prem (alternatives)," said Datapipe Director of Product Management David Lucky. "They kept telling us [pricing is] going to very attractive."
To be successful reselling the offering, Datapipe – which has been testing the offering for the last six months - needs to be able to show customers that if they use VMware Cloud on AWS to move workloads from their on-premises environments, they'll save money, Lucky said, noting the pricing is "in the band where it needed to be."
Breaking the VMware Cloud On AWS pricing down for customers is no easy task, given the range of options, services and incentives. But Amazon and VMware have crossed the first hurdle with the new pricing model, he said.
AWS CEO Andy Jassy, after joining VMware CEO Pat Gelsinger in a keynote Monday (the same day the pricing was revealed), said that VMware Cloud on AWS is "much more cost effective" than rival hybrid cloud options on the market.
John Blumenthal, vice president of project management at CloudPhysics, a cost-optimization software developer with close ties to VMware, told CRN that by introducing the offering at a relatively low price point, VMware has created a market dynamic that might generate broader adoption of its on-premises software.
The joint offering with Amazon should drive other "hypervisor-based vendors," especially those selling hyper-converged infrastructure, to commit to VMware so they can leverage the hybrid capabilities needed to remain competitive, Blumenthal said.
CloudPhysics has analyzed against thousands of anonymized organizations stored in its IT industry data lake, comparing costs across public cloud providers and on-premises solutions, Blumenthal said.
The conclusion: VMware Cloud on AWS "represents the best available cloud cost structure" for running VMware environments once discounts are applied targeting the virtualization vendor's existing installed base.