VMware acquires CloudHealth Technologies for multi-cloud management

VMware acquires CloudHealth Technologies for multi-cloud management

VMware is hosting its VMworld customer conference in Las Vegas this week, and to get things going it announced that its acquiring Boston-based CloudHealth Technologies. They did not disclose the terms of the deal, but Reuters is reporting the price is $500 million.

CloudHealth provides VMware with a crucial multi-cloud management platform that works across AWS, Microsoft Azure and Google Cloud Platform, giving customers a way to manage cloud cost, usage, security and performance from a single interface.

Although AWS leads the cloud market by a large margin, it is a vast and growing market and most companies are not putting their eggs in a single vendor basket. Instead, they are looking at best of breed options for different cloud services.

This multi-cloud approach is great for customers in that they are not tied down to any single provider, but it does create a management headache as a consequence. CloudHealth gives multi-cloud users a way to manage their environment from a single tool.

CloudHealth multi-cloud management. Photo: CloudHealth Technologies

VMware’s chief operating officer for products and cloud services, Raghu Raghuram, says CloudHealth solves the multi-cloud operational dilemma. “With the addition of CloudHealth Technologies we are delivering a consistent and actionable view into cost and resource management, security and performance for applications across multiple clouds,” Raghuram said in a statement.

CloudHealth began offering support for Google Cloud Platform just last month. CTO Joe Kinsella told TechCrunch why they had decided to expand their platform to include GCP support: “I think a lot of the initiatives that have been driven since Diane Greene joined Google [at the end of 2015] and began really driving towards the enterprise are bearing fruit. And as a result, we’re starting to see a really substantial uptick in interest.”

It also gave them a complete solution for managing across the three of the biggest cloud vendors. That last piece very likely made them an even more attractive target for a company like VMware, who apparently was looking for a solution to buy that would help customers manage across a hybrid and multi-cloud environment.

The company had been planning future expansion to manage not just the public cloud, but also private clouds and data centers from one place, a strategy that should fit well with what VMware has been trying to do in recent years to help companies manage a hybrid environment, regardless of where their virtual machines live.

With CloudHealth, VMware not only gets the multi-cloud management solution, it gains its 3000 customers which include Yelp, Dow Jones, Zendesk and Pinterest.

CloudHealth was founded in 2012 and has raised over $87 million. Its most recent round was a $46 million Series D in June 2017 led by Kleiner Perkins. Other lead investors across earlier rounds have included Sapphire Ventures, Scale Venture Partners and .406 Ventures.


Source: Tech Crunch

Alibaba continues to gain cloud momentum

Alibaba continues to gain cloud momentum

When Alibaba reported its earnings yesterday, the cloud data got a bit buried in other stories, but it’s worth pointing out that its cloud business grew 93 percent in the most recent quarter to $710 million. That’s down a smidgen from the gaudy triple digit growth of last report, but their market share has doubled in just two years, and they are growing fast.

As John Dinsdale, principal analyst at Synergy Research, a firm that keeps a close eye on the cloud market points out, the dip in growth is all about the law of large numbers. Alibaba couldn’t sustain triple digit growth for long.

“Microsoft Azure and Google Cloud Platform have recently seen similar reductions in growth rates, and if you go back far enough in time, AWS did too. The key thing is that the market for cloud infrastructure services is now very big, yet is still growing by 50% per year — and the leading players are either maintaining or growing their market share,” he said.

Back in 2015, when the Chinese eCommerce giant launched a big cloud push as part of an effort to expand beyond its eCommerce roots, Alibaba Cloud’s president Simon Hu bragged to Reuters, “Our goal is to overtake Amazon in four years, whether that’s in customers, technology, or worldwide scale.”

That is obviously not happening, but the company has managed to move the market share needle, doubling from just 2 percent of worldwide cloud infrastructure market share in 2016 to 4 percent today. That’s nothing to sneeze at, according to Dinsdale, but it’s also worth pointing out that most that business is in Asia, and of that, most of it is in its native China.

Like all its cloud competitors, the company is concentrating on some key technologies to drive that growth including big data analytics, artificial intelligence, security and Internet-of-Things, all of which are resource intensive and help grow revenue quickly.

To sustain its growth, however, Alibaba needs to begin to develop markets outside of China  and Asia. Dinsdale thinks that could happen as Chinese customers expand internationally. He also recognizes the political realities that the company faces as it tries to move into western markets. “Alibaba has what it takes to seriously challenge the top four cloud providers — despite some inevitable political headwinds that it will face,” he said.

While Alibaba might not reach the lofty heights of catching AWS any time soon, or probably ever, it has a good shot at IBM and Google Cloud Platform and for a company that just started taking the cloud market seriously in 2015, that’s amazing progress.


Source: Tech Crunch

Google Cloud Platform launches its fourth region in North America

Google Cloud Platform launches its fourth region in North America
 Google’s Cloud Platform now features four regions in North America. The company today announced the launch of its newest Cloud Platform region in Northern Virginia. This region, which answers to the lyrical name of ‘us-east4,’ complements the company’s existing regions in Oregon, Iowa and South Carolina.
In terms of cloud regions, Google has long lagged behind its… Read More


Source: Tech Crunch

Google Cloud adds three new GCP regions

Google Cloud adds three new GCP regions
 Today at Google Cloud Next in San Francisco, the company announced three new regions for its Google Cloud Platform. The Netherlands, Canada and California are set to join the rapidly growing list of host locations. The move benefits users by allowing more flexibility for where users keep their resources. Being able to utilize additional local infrastructure can decrease latency and… Read More


Source: Tech Crunch

Google announces significant partnership with SAP at Google Cloud Next Conference

Google announces significant partnership with SAP at Google Cloud Next Conference
 Google announced onstage today at Google Cloud Next a partnership with SAP to deliver SAP HANA, the company’s in-memory database on Google Cloud Platform. It’s a big deal for a number of reasons. First of all, it gives Google a major enterprise customer for its cloud platform, something that it’s trying to promote in big way. Secondly, it gives them an established… Read More


Source: Tech Crunch