Does VMware vSphere solve IT's worries about Cloud?

For all the hype about cloud computing in the enterprise -- hype that Gartner believes is now nearing its peak -- IT professionals continue to tell cloud-related vendors that the cloud will not be practical until several serious concerns are addressed. VMware, with its vSphere 4 announcement today, is laying the foundation for what it hopes will be a central role for VMware technology in enterprises making use of both public and private cloud computing systems.

VMware vows to overhaul data center with "cloud operating system" 

So, how well does vSphere address the key worries that enterprises have about cloud computing?

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For all the hype about cloud computing in the enterprise -- hype that Gartner believes is now nearing its peak -- IT professionals continue to tell cloud-related vendors that the cloud will not be practical until several serious concerns are addressed. VMware, with its vSphere 4 announcement today, is laying the foundation for what it hopes will be a central role for VMware technology in enterprises making use of both public and private cloud computing systems.

VMware vows to overhaul data center with "cloud operating system" 

So, how well does vSphere address the key worries that enterprises have about cloud computing?

First, a bit of definition on what VMware rolled out today: VMware is positioning vSphere 4, which replaces its current Virtual Infrastructure 3 (VI-3) product, as the "first cloud OS platform."

"It enables enterprises and service providers to take their data centers and turn them into a private cloud," says Raghu Raghuram, VP and general manager of VMware's server business unit. "We are enabling companies to deliver IT as a service."

Keep in mind that the term "private cloud," which is very much in vogue these days, has a different definition depending on what vendor is using it. At its simplest, analysts say, a private cloud can just mean a large number of virtualized servers in a data center. Salesforce.com, Google and Amazon.com, for example, all have their own take on the matter.

VMware's definition: "Step one is you virtualize," Raghuram says. "The next part of it is how do you provide capacity to end users?" In VMware's view, Raghuram says, a highly-virtualized data center does not become a "private cloud" until the IT group can provision services and capacity to users on a self-service basis, automate management tasks and chargeback billing to the business.

IT Faces Crisis of Credibility

Today's vSphere news is the first in a two-part rollout to help customers achieve that private cloud vision. But it won't be until later this year that VMware will debut its products that address the management, automation and chargeback parts of the picture, Raghuram says.

The remaining question, however, is will IT buy into VMware's vision?

At a big-picture level, IT knows it needs to consider and plan for the private and public cloud, says Forrester senior analyst Glenn O'Donnell. "IT is in a crisis of credibility right now," O'Donnell says, noting the wide gulf between the business goals and IT processes at many large enterprises. "All of this is being exacerbated by economic conditions."

If IT does not figure out how to cut costs and improve service to the business via cloud and other virtualization technologies, he says, IT groups will face what he calls "punitive outsourcing," where the business side of the company decides to cut IT out of the picture by shipping the IT work out of house.

VMware currently dominates the virtualization market and will certainly be among the top contenders for IT groups examining the notion of private cloud computing. But some of the key concerns that enterprise IT leaders have about cloud computing remain beyond VMware's control, analysts say.