VMware's hosted cloud service will come in two varieties. One is the vCloud Hybrid Service Dedicated Cloud, for workloads that do not vary much in computational needs. This service will provide physically isolated and reserved compute resources, starting at US$0.13 cents an hour for a virtual machine with one processor and 1GB of memory, in a yearly contract.
The second offering, the multitenant vCloud Hybrid Service Virtual Private Cloud, is designed for variable, or bursty workloads. It will start at 4.5 cents an hour for a virtual machine with one processor and 1GB of memory.
VMware offers a vCloud Connector plug-in to extend vSphere management to the VMware cloud. Customers will be able to use other VMware management tools for jobs in the cloud as well, such as VMware vMotion, High Availability and vSphere Distributed Resources Scheduler.
In addition to VMware itself, channel partners, service providers and integrators will also be reselling and customizing VMware's cloud service, targeting specific geographies or industries. "We see this as the most partner-friendly hybrid cloud," Gelsinger said. VMware also announced that it will offer SAP software, including Hana in-memory analytics, as a service that can run in this cloud.
Launching the service will be challenging in a number of ways, industry observers have noted. VMware could potentially compete with partners, such as Verizon Terremark. It also must play catch-up with more established cloud services in the marketplace, such as Amazon Web Services and Rackspace's OpenStack-based service.
Earlier this week, Dell bowed out of the cloud service market, discontinuing a cloud service using VMware's technologies in favor of handing business to partner providers.
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