VMware is the number-one cited vendor for private cloud IaaS, we believe most customers will view a VMware private cloud (not overall private cloud) as a way to make their existing infrastructure more efficient, rather than creating a platform for net new applications. And despite our positive view that most VMware private clouds will use VMware's vSphere hypervisor as its virtualization layer (similar to traditional), this implies that IT spend on vSphere for private clouds is unlikely to increase materially because most will likely migrate applications using the same (or perhaps fewer) licenses than what they were using in their traditional environment.
Red Hat OpenStack (IaaS) and Red Hat OpenShift (PaaS), which is roughly likely less than 5% of Red Hat?s revenue, is a positive impact to Red Hat as it is net new revenue, which also helps drag along sales of additional Red Hat products such as RHEL and Red Hat Enterprise Virtualization (RHEV). Many enterprises adopting private cloud are typically larger enterprises with significant traditional onpremise environments who likely already have enterprise agreements with Red Hat, resulting in a neutral impact.
Microsoft?s private cloud solution is a combination of three pieces of software, Microsoft System Center (IaaS and management software), Windows Server (server operating system) and Hyper-V (virtualization, Hyper-V is free with the purchase of Windows Server 2012 R2). They also offer Azure Pack, software that allows customers to integrate Windows Server, System Center, and SQL Server to create private cloud IaaS, PaaS, and database as a service for no additional cost. Microsoft often discusses its ability to have seamless management and deployments in hybrid cloud environments. Microsoft System Center lets users provision, automate and monitor workloads on private cloud and Windows Azure, in a consistent management environment.
