B2B Tech Talk with Ingram Micro
B2B Tech Talk with Ingram Micro

Episode · 2 months ago

Opening New Revenue Streams with VMware Cloud Director Service


Cloud providers are always looking to expand their revenue, grow their margin and differentiate their portfolios. The key to that is expanding their offerings.

VMware Cloud Director service lets them do that with speed and at a reduced cost.

Shelby Skrhak speaks with Guy Bartram , director of Product Marketing for VMware Cloud Service Business Unit, about: 

- Cloud Director service

- Opening new revenue streams

- Solving challenges for SMBs

- Additional benefits

For more information, contact the Ingram Micro VCPP team (vcpp@ingrammicro.com ) or visit VMware Cloud Director service. 

To join the discussion, follow us on Twitter @IngramTechSol #B2BTechTalk

Listen to this episode and more like it by subscribing to B2B Tech Talk on Spotify , Apple Podcasts , or Stitcher. Or tune in on our website .

...you're listening to B to B tech talkwith ingram Micro, the place to learn about new technology and technologicaladvances before they become mainstream. This podcast is sponsored by ingramMicro's. Imagine next, it's not about the destination, it's about goingsomeplace you never thought possible. Go to imagine next dot ingram micro dotcom to find out more. Let's get into it. Welcome to B to B tech talk with ingramMicro. I'm your host Shelby scare hawk. And my guest today is Guy Bartram,Director of product marketing for VM ware. Cloud service Business unit Guythrilled to have you here today. Thank you very much for having me. Show me,I'm thrilled to be here as well, definitely. Well, today we're talkingabout opening new revenue streams with VM ware, Cloud on AWS and and the VMware Cloud Director service. But first Guy, tell us about this Cloud Directorservice and what's important to understand about it. Okay, well, clouddirector, first of all has been around for about 10 years now. It celebratedits 10th anniversary last year. So, Cloud Director is a code base is amulti talented public clouds application infrastructure deliverymechanism and it's very popular with service providers because it allowsthem to provide public cloud services and gain real economy of scale on theirinfrastructure. And Cloud Director service is basically the evolution ofCloud Director. It's like the next iteration in the life cycle of CloudDirector if you want to think about it like that. We are keeping them bothrunning at the same time, but basically, Cloud Director service is CloudDirector running as a service in amazon web services. So according to you knowwhat it's running on, you know, there is some, some limitations. So it'simportant to understand that you're not getting absolutely everything thatcloud director can do in your data center because you have a lot morecontrol of your hardware and your infrastructure in your data center.Cloud Director services running in B M, MacLeod and AWS. And hence it is boundby limitations of all that supports. And that's seen in fact that somethings like Tansy for example, one of the M wears big plays around atmodernisation has been supported by Cloud Director for over a year now, butit's only just coming to Cloud Director service with the N word, cloud on AWS,support for Tan Xue. And also the other big thing to bear in mind is claddirect service because it is a a service offering assess serviceoffering. It comes to you via the MSP route to market. So there's two routeto markets in our program. One of them is we call it our rental route tomarket where the service provider owns and operates the equipment and thenrents the software via an aggregator to deliver the services to the customer.The other one is the MSP model where a...

...cloud provider takes up a commitcontract with VM ware. VM ware runs the infrastructure, The cloud provider thenprovides the service and they own the terms and conditions of the customer?So cloud darkest service is a part of the MSP route to market and as such, itrequires a commit contract and you naturally also require a VM McCloughanAWS contract with that does cloud Director versus Cloud Director serviceare their pros and cons for different types of businesses like which, whichwould make more sense for what type of business if you're a service providerand you're looking to, you know, jump start your cloud strategy, you've gottwo choices really. You can either start building actually three choices.You can start building your own data center which is often quite anexpensive task and requires quite a significant upfront capital expenditure.So it's not for everyone. Now, there's additional capabilities with thingslike Dell, VX rail, hyper converged cloud platforms that you can buy andlease from Dell and other providers and you can jump start your cloud in thatrespect as well in your data center. But the way the cloud director servicepositions are sell positions, this solution is that, you know, we'rereally providing you the infrastructure with the McLaren a W s. You know, thatinfrastructure, it's it's VM ware STD C software defined data center and you'venow got all the goodness of cloud director on top without you actuallyhave to deploy clusters, big Capex investments, that type of thing. Soit's a lot quicker to get the market a lot quicker for you to deliver serviceson, that makes sense? Well, so how does the cloud director service help VM ware?Cloud providers really expand their offering an open new revenue streams?Yeah, So this is, this is really key to it and, and you know, when we talk toour cloud providers, we always talk to him about their revenue, their margin,how they're differentiating their portfolio and expanding your offeringis key to that. And like I said before getting that time to market, becausethat really equates to time to revenue. So the faster you can go to market, thefaster you can start seeing revenue and hopefully margin. So cloud directorservice really primarily it removes the reliance on host based model with VMMcCloughan Ws. So by what I mean there is when you as a cloud provider or as acustomer want to buy VM a clown, a W S. You have to buy a host, it's done bythe host. So it's a private cloud delivered to you with a host basedmodel and the hosts are quite expensive. So you know, you're not, you're notlooking at a small amount of money for a year's commit or a three year commit.Obviously the more you buy, the bigger discount you get, but it's still asignificant investment. So what cloud...

...director service does is introduces thesame cloud Director multiple multi tendency capabilities that you get inyour data center and cloud director, which means you can run multiplecustomers securely on the same piece of hardware. So rather than having toisolate each customer of physical host level, you can do it actually at the VMlevel at the virtual level. So we remove that reliance, which means thatthe entry criteria for customers drops considerably. You know, you no longerhave to buy a whole host, you can buy a VM, you know, that can be a very, verysmall unit of consumption to trial a service perhaps. And then the uniquecharacteristics around Cloud Director, which we'll get to in a bit is we canbring high levels of flexibility, we have, you know, this true multi cloudcontrol plane now where you can using Cloud Director, you can deliver cloudservices in via McCloughan, AWS in Cloud Director on premises and V centerEndpoints of a BcF being MacLeod Foundation in points as well, all fromthat single pane of glass, that single Cloud Director service view. So it'sreally helping address customers main initiatives and main goals around multicloud, we will talk about it, but actually having a single operationalmodel across multiple clouds is unique to VM where there aren't any otherproviders out there to do that. And it's also a big kind of play for CloudDirector services and Cloud Director, you know, when I talk about thesethings, I'm talking about them, really, they're the same thing. So, selfservice is a big ticket item that we've always had with Cloud Director, theextensive bility framework that we've had with. Cloud Director Enables aservice provider to deliver 3rd party ecosystem marketplace services andtheir own if they want and they can do that now as VMS also as containers withhelm charts so you can complete that deV ready cloud lifecycle by deliveringthe infrastructure in a multi tinted way, delivering the applications. Alsodelivering the kubernetes clusters as you would as well because you will needthose for Dave ready and then delivering the application portfoliosfor Ci Cd pipeline, which means the developers then have the infrastructureto do their coding their tests and stuff like that. They check in andcheck out of code and then when they want to push to production they canpush to a catalogue which would then also run in the cloud Director serviceor greedy see the or virtual data center. So we're really bringing thewhole life cycle for Dave really cloud expansive service portfolio, bringingin the app launch pads and bitten army applications. So there's tons of thingsto for a service prior to play with. And the last point really isgeographical expansion. So if you have a customer who's got an office or apresence in West coast usa and they also have a what they acquire a company,let's say on the East coast and they...

...want to get the company using the samecloud applications and cloud infrastructure they used today inVienna MacLeod Ws Well, Cloud Director Service, we can connect those two SDDcM points together and still provide them that single access pane of glass.Single one point to come into their cloud infrastructure, whether it's Eastor West Coast. So as long as the latency requirements are in within theboundaries of good performance, we can link up those data centers and providethat single unified pane of glass to the customer. So let me ask withoutCloud Director service, what would that process be like? How would that be doneor how difficult would that be to do without Cloud direct service? Youbasically have two different entry points. You wouldn't have that abilityto just jump into your other sdc. You'd actually have to go into a wholeseparate UI and then authenticate with that. You try and log in and itwouldn't be as seamless as as it is. We can basically present the resourcesfrom new york's together as one thing. So to a customer just looks likethey're accessing one instance of cloud director. So small and midsizebusinesses, they've always had to do more with less. But the pandemic hasreally raised that tense agree. So what challenges does cloud Director servicehelp solve for these customers for those businesses? Yeah, let me just goback to that point I made earlier about splitting up that host model, um makingthat more affordable. So I think one of the challenges is clearly is cost right,everyone wants to go to cloud, but everyone then suddenly starts realizingclouds more expensive and they thought, and cloud direct services, that gamechanger to give small businesses the opportunity to start very small onbeing McCloughan aws and grow and shrink as they need and when they'regrowing and shrinking, you have a kind of challenge that you typically havewith a host based model is you have Either too much or too little ofresource and it's not very flexible. You have to, you know, if you want tohave more resources, you've got to buy a whole new host, although you onlymaybe using 1/10 the capacity of the host. So flexibility is anotherchallenge that cloud Director service solves. And when I say flexibility,there's the flexibility to have the resources that you want for the workclothes requirements. So if you've got a database, for example that requires ahigh amount of memory, then what cloud director can do is carve up resourceswithin a resource pool or provide a T shirt sized BM allocation model and beable to kind of be very precise about how much resource you're given and howmuch you can pay up to and then what you can accelerate over and above. Soit's extremely flexible in its resource...

...consumption models, whether they'rehard allocated or or flexible models and therefore you get the performancethat you want for the workloads. So really, rather than in hyper scalewhere you have to commit to buying a certain t shirt science and then if youdon't need that t shirt size or you require less resource, a smaller tshirt size, perhaps you have to go and sell those yourself. So it's yourresponsibility, you own assets, so to speak, well clad direct service, wejust shrink their resource pool boom, you know, you don't have to worry aboutany of this marketplace stuff and I think nothing to bear in mind is speed.One thing the pandemics clearly showed us is, you know, speed to delivery isvery important and you know, it really means the life or death of, of anorganization, the more you're not delivering, the more you're not gettingpaid. So Claude eric service delivers that that self service, self resourceand you know, it's the same skills, it's the same underlying VM wareinfrastructure. So you've got some some big advantages there, I think thatClaude ERIC service with the McLaren Aws solves for small to mediumbusinesses so that ability to adjust technology solutions to scale, that's agreat point that you're, you're able to shrink or expand as needed. Does thatalso apply to the size of the business because say that a business is growingexponentially and all of a sudden they, they've taken on a whole lot of clientsand they need to scale very, very quickly, that's also the speed and easethat we're talking about, right. Yeah, absolutely. So tendency is basicallythe underlying characteristic we're talking about here and cloud directorhas always been a multi-10anted solution. So it does the tenancy, notat the host level, like I said, but it segregates them at the network layer.So you can securely isolate and firewall workloads between differentcustomers on the same physical host and multi tendency is, you know, if you'vegot a customer that's expanding fast and using up all the resources of ahost in um, a non VM where cloud director environment, you would likelyget what we call noisy neighbors syndrome, which is basically yourneighbors clamoring for resources and getting the resources and yourapplication may not be getting the resources that you've been paying for.And it's a little known fact that besides compute which is around thecapacity and performance, storage capacity and external networkthroughput, Cloud director can also manage storage biopsy, which is theinput output, read operations per second and it can do that at a verygranular level at the virtual disk level. So by doing that, we're able tocontrol noisy neighbor syndrome, which means that we can securely and from aperformance perspective guarantee performance of multiple customers onthe same host when, when they're...

...expanding when they're perhaps runningtheir billing cycle or there month, end cycle, they've got a particular spikein retail. Those are the times when, you know, you really want the power andyou know, you shouldn't be taking that power away from someone else becauseyou're running in a multi tenant environment. And it's key to rememberbecause a lot of the other environments that you would run public cloud in,they don't do noisy neighbor controls like this. What they do is throttleback the resources. So when you look at the performance charts, you're neveractually gonna get exactly what you thought you were going to get, youmight be allowed to burst up to it at some points. But the difference with VMware, VM cloud Director is we're actually giving what we say, we'regoing to give to you and we're putting the controls in place to make sure youget that performance. So yeah, I mean big customers, they may have differentrequirements and they can scale very quickly with a resource pool. You know,I think, I think VM where clown Aws has a 15 minute S L. A for new hosts. Don't,don't quote me on that one. But it's fast so they can spin up a new host andyou can extend that resource pool in a matter of minutes to absorb those newcompute resources, storage resources and memory resources. And what cloudproviders do is they'll they'll provide tiers of service. So as an organization,you will have what we call all V D. C. S or virtual data centers and those arebasically what they say they are, there are virtual data centers withinfrastructure compute storage memory and all of the things that you you needto run your workload. And what cloud providers do is offer different tiersof storage and different tiers of compute capacity in those resourcepools. So therefore we can not only eliminate that noisy neighbor. We wecan guarantee and provide Tesla's on different types of resource pools anddifferent types of allocation model. So it's very clever in the way it doesn't.Also, I read that cloud Director service reduces time to provision newvirtual data center resources and makes multi region expansion easier. That maysound uh you've you've pointed to some of those uh, you know, virtual datacenter resources but you know, what does that mean to mid sized businessesand uh without the Cloud director service, what would that entail? Yes.If you didn't have cloud direct service and you wanted to spin up additionalresources perhaps in different availability zones of different regions,then you need to first of all set up an agreement to procure hosts in thatregion, then configure the resources. Configure the access to resources andthen you'd be jumping from one tree to another. Like I said before. So we'vecloud director and that that late and sea boundary as long as the late andsee is within the performance...

...guidelines that we give, which they arepretty much within a continent. So, you know, East and west us, You can use onecloud director instance and hit both in europe. You can pretty much cover mostof europe as well when you start getting to things like, you know, canJapan communicate with Sydney and probably not, you know, the latency isgoing to be quite high and we use we use natural cloud director capabilitiesof association to actually join the VCS and the and the C D s, the clouddirector service instances together. And by doing that, then you've got thatkind of that unified for you. You've got that single pane of glass and Ithink for larger customers who have more of a multi cloud requirementhaving a common service delivery framework and operational model is, iskey to their growth. They don't want to retrain their employees, they want thespeed of delivery and they also want cloud economics, which is crucial fortheir success and security. Of course security. So the McLaren, L A W Soffers a lot of this already. But with the addition of cloud direct service,they're getting that ability to provide access to infrastructure and you know,there's a component include direct service called LP or apple launch pad.And the whole point about launchpad is you can give it to a user and they knownothing about underlying computing networks and security. They just want aweb server or a database server. So you can give them this catalog and thenjust one click, I want one of these and it's automatically provisioned with allof these sizing that you've already pre specified the security, the networkconstraints. So you're really driving consumption of your platform, but alsogiving the organization, your customer the tools for them to fulfill theirbusiness, which is critical. So as we start to wrap up this episode, uh, youknow, we asked for one the same question because they are really havetheir pulse on on technology and what is ahead and their and their niche. So,uh, where do you see technology going in the next year? Okay, that's a goodquestion. Um, so I think there's no doubt that, you know, cloud has nowbecome the de facto place to try and run your applications. However, thereis still a lot of legacy in on premise. And you know, that's not going to goaway quickly. I think what VM ware is now offering is a very attractivesolution to be able to manage your on prem. I'm going to call it a legacy,but you know, it might not be legacy. Just maybe all applications that arefairly difficult to move. We can now move those across to cloud seamlesslyto be um, a cloud on AWS with zero downtime. And, you know, technologieslike Hc X, which comes with your via MacLeod AWS subscription. That's what'sproviding that underlying capability to...

...move. Now, getting your you as anorganization into cloud is one thing, Once you're in there, you know, youwant then start focusing on your applications. You can almost breathe asigh of relief. I've I've made it, I've managed to shut down my data center,you know, I've managed to move my my legacy applications as they are into Acloud and check box one deliver into cloud has been achieved. And you know,I've done that within my timeframe. Perhaps the next kind of big hurdle isdeciding what you want to do with the workloads that can modernize and how tomodernize them and whether to modernize them at all. You know, you need to lookat the kind of five ours that VM I talk about to understand what to do withthose work clothes. And I think in the next year we'll see more legacyapplications moving to cloud and more customers being able to shut their datacenters. Now that we have introduced a lot more edge capabilities, we're goingto see a prolific growth of cloud at the edge where you know, as a cloudprovider. For example, if you want to provide your customers edge processingfor applications that have latency restrictions, then now you can do that.But you're able to do that in a cloudy manor with technology that Vienna isdelivering, enabling and Dell for example and a a W s you know, you'reable to run that VM ware cloud endpoint in a remote region and have all of thatday, zero day one day two lifecycle management taken care of which isessential to your operating costs and and going forward you deliveringservices. So I think we'll see a lot more on the edge, we'll see a lot moremigration to cloud. And I think from our perspective, certainly we're goingto be expanding the number of 10 points that cloud director can support. CloudDirector service will become that central hub for delivering applicationsand infrastructure into different endpoints. Someone new hyper scaleear's which we have relationships with into hopefully into Cloud Director onpremise and into our premises as well. So building on that vision of thatsingle control plane and single control point to multiple clouds. Well,fantastic. Uh if our if our listeners want to find out more about what wetalked about today, how can they reach out? Sure, well we have our website andprobably best to use the Bentley link, which is B I T dot L y slash c D S dashMSP. But we also have a lot of materials on our cloud solutions site.So cloud solutions dot gmail dot com. Fantastic stuff guy, Thank you so muchfor joining me. You're welcome. It's been a pleasure. Thank you for givingthe opportunity to talk. Absolutely. And thank you listeners for tuning inand subscribing to be to be tech talk...

...with ingram Micro if you like thisepisode or have a question, please join the discussion on twitter with thehashtag B two B tech talk. Until next time I'm Shelby skirt Talk. You've beenlistening to B to B Tech Talk with ingram Micro, hosted by Kerry roberts.This podcast is sponsored by ingram Micro's. Imagine Next B two B Tech Talkis a joint production with Sweet Fish Media and ingram Micro. To not miss anepisode. Subscribe today on your favorite podcast platform. Mm.

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