Virtual Computing Environment: Difference between revisions

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{{Short description|American computer hardware brand}}
{{Cleanup bare URLs|date=September 2022}}
{{Infobox company
| name = Virtual Computing Environment Company
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'''Virtual Computing Environment Company''' ('''VCE''') was a division of [[EMC Corporation]] that manufactured [[converged infrastructure]] appliances for enterprise environments. Founded in 2009 under the name '''Acadia''', it was originally a joint venture between EMC and [[Cisco Systems]], with additional investments by [[Intel]] and EMC subsidiary [[VMware]]. EMC acquired a 90% controlling stake in VCE from Cisco in October 2014, giving it majority ownership.<ref name=nworld-emcvce>{{cite news|title=Why EMC acquired VCE from Cisco|url=httphttps://www.networkworld.com/article/2837176/cisco-subnet931726/why-emc-acquired-vce-from-cisco.html|access-date=12 October 2015|work=Networkworld}}</ref> VCE ended in 2016 after an internal division realignment,<ref name="cpd"/> followed by the sale of EMC to [[Dell]].<ref name="dellsale"/>
 
==History==
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By the end of 2010, Capellas told analysts the venture had 65 customers, with an average system costing about $2.5 million.<ref>{{Cite news |title= Vblock clouds moisten the data center: Capellas talks up VCE sales and pipeline |author= Timothy Prickett Morgan |work= The Register |date= December 21, 2010 |url= https://www.theregister.co.uk/2010/12/21/vce_acadia_ramp/ |access-date= August 11, 2013 }}</ref><ref>{{Cite news |title= Capellas-led coalition making strides by the Vblock |author= John Webster |work= CNET news |date= December 20, 2010 |url= http://news.cnet.com/8301-21546_3-20026158-10253464.html |access-date= August 11, 2013 }}</ref>
 
Acadia and the Virtual Computing Environment coalition combined into a single entity in January 2011, called VCE, the Virtual Computing Environment Company.<ref>{{Cite web |title= VCE Coalition Combines with Acadia, Simplifies Name to VCE |work= The VAR Guy |date= January 21, 2011 |url= http://thevarguy.com/virtualization-applications-and-technologies/vce-coalition-combines-acadia-simplifies-name-vce |archive-url= https://web.archive.org/web/20140424153658/http://thevarguy.com/virtualization-applications-and-technologies/vce-coalition-combines-acadia-simplifies-name-vce |url-status= usurped |archive-date= April 24, 2014 |access-date= August 9, 2013 }}</ref><ref>{{Cite news |title= VCE Coalition and Acadia Combined and Renamed VCE, the Virtual Computing Environment Company |work= Press release |date= January 20, 2011 |publisher= VCE |url= http://www.vce.com/about/media/news?id=tcm:20-468 |access-date= August 9, 2013 }}</ref> Originally located in [[Silicon Valley]] and [[Dallas, Texas]], an expansion was announced in March 2011 to [[Richardson, Texas]] with an investment from the [[Texas Enterprise Fund]].<ref>{{Cite news |title= VCE, Major Cloud Computing Company, Plans Major Expansion in Richardson |work= Press release |date= March 15, 2011 |publisher= VCE, The Virtual Computing Environment Company |url= http://www.vce.com/about/media/news?id=tcm:20-476 |access-date= August 9, 2013 }}</ref> In October 2011, another office opened in [[Marlboro, Massachusetts]], close to VCE's EMC-owned manufacturing plant in [[Franklin, Massachusetts]].<ref>{{Cite news |title= Cloud computing allows companies to outsource IT services |author= Priyanka Dayal |work= Worcester Business Telegram |date= December 11, 2011 |url= http://www.telegram.com/article/20111211/NEWS/112119983/1002/business |access-date= August 21, 2013 }}</ref><ref>{{Cite news |title= EMC, Cisco, Intel & VMWare Launch Joint Venture in Marlborough |author= Brandon Butler |work= Worcester Business Journal |date= October 13, 2011 |url= http://www.wbjournal.com/article/20111013/METROWEST01/310139999/emc-cisco-intel--vmware-launch-joint-venture-in-marlborough |access-date= August 21, 2013 }}</ref> In July 2012, Cisco executive Praveen Akkiraju was appointed CEO and Frank Hauck as president.<ref>{{Cite news |title= VCE Appoints Praveen Akkiraju Chief Executive Officer |work= Press release |date= July 19, 2012 |publisher= VCE |url= http://www.vce.com/about/media/news?id=tcm:20-2159 |archive-url= https://archive.today/20130809191844/http://www.vce.com/about/media/news?id=tcm:20-2159 |url-status= dead |archive-date= August 9, 2013 |access-date= August 9, 2013 }}</ref> It was estimated VCE had 1200 employees at the time, with undisclosed revenues but accumulated losses.<ref>{{Cite news |title= VCE Taps Cisco Veteran As New CEO |work= CRN |date= July 19, 2012 |author= Chad Berndtson |url= http://www.crn.com/news/networking/240004002/vce-taps-cisco-veteran-as-new-ceo.htm |access-date= August 21, 2013 }}</ref> Publicized customers included [[Babson College]]<ref>{{Cite news |title= Taking College IT Out of the Hardware Business |author= Bridget McCrea |date= September 15, 2011 |work= Campus Technology digital magazine |url= http://campustechnology.com/articles/2011/09/15/taking-college-it-out-of-the-hardware-business.aspx |access-date= August 21, 2013 }}</ref> and the [[Mississippi Community College Board]].<ref>{{Cite web |title= Vblock Video Success Story – MS Community College Board |work= Press release |date= July 11, 2012 |url= http://www.ventech.com/2012/07/vblock-video-success-story-ms-community-college-board/ |publisher= Venture Technologies |access-date= August 21, 2013 }}</ref> The press debated if the venture should be considered a "[[startup company]]", with one headline joking "VCE = virtual cash erosion" and questioning millions of dollars of executive compensation.<ref>{{Cite news |title= Vblocks bleed out EMC money: VCE = virtual cash erosion |author= Chris Mellor |date= August 8, 2011 |work= The Channel |url= http://www.channelregister.co.uk/2011/08/08/vce_losses/ |access-date= August 21, 2013 }}</ref> Others considered the arrangement to be a wise investment.<ref>{{Cite news |title= Is VCE a Flailing Startup? A Study of Snark in New Media |author= Mark Hopkins |work= Silicon Angle |date= August 17, 2011 |url= http://siliconangle.com/blog/2011/08/17/is-vce-a-flailing-startup-a-study-of-snark-in-new-media/ |access-date= August 21, 2013 }}</ref>
 
Through 2012, there was a mixture of some success (with speculation of layoffs), and continued confusion due to products from competing partners such as [[NetApp]] FlexPod and [[Xsigo Systems]].<ref>{{Cite news |title= The VCE Gamble: You Got To Know When To Hold 'Em, Know When To Fold 'Em |author= Chad Berndtson and Joseph F. Kovar |date= November 26, 2012 |work= CRN |url= http://www.crn.com/news/data-center/240008994/the-vce-gamble-you-got-to-know-when-to-hold-em-know-when-to-fold-em.htm?pgno=2 |access-date= August 13, 2013 }}</ref><ref>{{Cite news |title= Cisco's 3-ring circus: Xsigo CEO on bait and switches |author= Chris Mellor |work= The Register |date= February 24, 2012 |url= https://www.theregister.co.uk/2010/12/21/vce_acadia_ramp/ |access-date= August 13, 2013 }}</ref> Cisco had announced its own "framework" called CloudVerse in late 2011 that was not specific to VMware.<ref>{{Cite news |title= Cisco's Bigger Bundle of Networking |work= New York Times Bits |author= Quentin Hardy |date= December 6, 2011 |url= http://bits.blogs.nytimes.com/2011/12/06/ciscos-bigger-bundle-of-networking/ |access-date= August 13, 2013 }}</ref><ref>{{Cite news |title= Cisco CloudVerse: Build One Private Cloud, Multiple Hypervisors |work= Information Week |author= Charles Babcock |date= December 8, 2011 |url= http://www.informationweek.com/cloud-computing/infrastructure/cisco-cloudverse-build-one-private-cloud/232300123/ |access-date= August 13, 2013 }}</ref> In August 2012, EMC announced a VSPEX reference architecture and partnership with [[Lenovo]] and other distributors that was seen as competing with a lower-cost option.<ref>{{Cite news |title= EMC Lenovo Deal Raises Questions For EMC-Cisco VCE Partnership |author= Joseph F. Kovar |date= August 2, 2012 |work= CRN |url= http://www.crn.com/news/storage/240004893/emc-lenovo-deal-raises-questions-for-emc-cisco-vce-partnership.htm |access-date= August 13, 2013 }}</ref><ref>{{Cite news |title= EMC hands disties licence to assemble VSPEX: Tells resellers to build it themselves or get someone else to do it |author= Paul Kunert |work= The Channel |date= August 15, 2012 |url= http://www.channelregister.co.uk/2012/08/15/emc_vspex/ |access-date= August 13, 2013 }}</ref><ref>{{Cite web |title= EMC Intends VSPEX for Data Center Flexibility |work= Channelnomics |date= April 12, 2012 |author= Larry Walsh |url= http://channelnomics.com/2012/04/12/emc-intends-vspex-data-center-flexibility/ |access-date= August 13, 2013 }}</ref>
 
In a November 2012 report by [[Gartner]], VCE had a 57.4% share of integrated infrastructure systems in the second quarter of 2012 based on revenue.<ref>{{Cite web |title= Market Share Analysis: Data Center Hardware: Integrated Systems, 1Q11-2Q12 |publisher= Gartner |author= Adrian O'Connell |date= November 30, 2012 |url= http://www.vce.com/asset/documents/gartner-market-share-analysis-report.pdf |access-date= August 9, 2013 }}</ref> Gartner had previously tracked server, networking, and external controller-based storage as individual markets. VCE was named one of the “2013 Virtualization 50” by ''[[CRN Magazine]]''.<ref name="crn13">{{Cite news |title= 2013 Virtualization 50 |work= CRN |date= May 24, 2013 |url= http://www.crn.com/slide-shows/virtualization/240155351/2013-virtualization-50.htm?pgno=43 |access-date= August 9, 2013 }}</ref> In May 2013, VCE estimated a $1 billion annual sales rate with more than 1,000 Vblock Systems sold.<ref name="bets" /> However, in US [[Securities and Exchange Commission]] filings, EMC accounted for a cumulative loss of over $430 million by September 2012, and Cisco a loss of $457 million by early 2013, since revenues are recorded to the owning companies, not VCE itself.<ref>{{Cite news |title= Cisco, EMC tout VCE market share, but report losses |author= Larry Dignan |work= Between the Lines |publisher= ZDNet |date= February 21, 2013 |url= httphttps://www.zdnet.com/article/cisco-emc-tout-vce-market-share-but-report-losses-7000011627/ |access-date= August 11, 2013 }}</ref> EMC reported an investment of $667.2 million in cash and $13.2 million in stock-based compensation to VCE, for a stake of about 58%.<ref>{{Cite web |title= Quarterly Report for period ended September 30, 2012 |date= November 2, 2012 |work= Form 10-Q |publisher= SEC |author= EMC Corporation |url= https://www.sec.gov/Archives/edgar/data/790070/000079007012000154/emc-2012930x10q.htm |access-date= August 11, 2013 }}</ref> Cisco reported a gross investment of $457 million, for a stake of about 35%.<ref>{{Cite web |title= Quarterly Report for Quarter ended January 26, 2013 |date= February 19, 2013 |work= Form 10-Q |publisher= SEC |author= Cisco Systems, Incorporated |url= https://www.sec.gov/Archives/edgar/data/858877/000085887713000013/csco-2013126x10qq2.htm |access-date= August 11, 2013}}</ref>
 
By 2013, some of the same press writers that initially criticized VCE came to view the structure of VCE as being good business for investors.<ref>{{Cite news|url=https://www.theregister.co.uk/2013/03/06/emc_vce_losses/|title = EMC loses half a BEEELLION on VCE ... But it's NOT what it seems|website = [[The Register]]}}</ref> Other press highlighted VCE as a source of innovation and financial performance for investors.<ref>[https://archive.today/20140401155400/http://www.eweek.com/storage/why-vces-newest-vblock-systems-demonstrate-innovation.html {{Dead link|date=February 2022}}Unknown]</ref><ref>{{Cite web|url=http://www.itbusinessedge.com/blogs/unfiltered-opinion/vce-stars-in-emc-financial-results.html|title = VCE Stars in EMC Financial Results|date = 13 February 2014}}</ref> Total VCE for 2013 has been reported at over $1B with over a 50% year-over-year growth rate.<ref>{{cite web | url=http://wikibon.org/wiki/v/VCE_Drives_Simplification_Past_$1B | title=VCE Drives Simplification Past $1B - Wikibon }}</ref>
 
In October 2014, EMC announced that it had acquired majority control of the VCE venture, with Cisco maintaining a 10% stake.<ref name=nworld-emcvce/>
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}}</ref>
 
On September 7, 2016, EMC was acquired by Dell.<ref name="dellsale">{{Cite web|title=$67 billion Dell-EMC deal closes today|url=https://social.techcrunch.com/2016/09/07/67-billion-dell-emc-deal-becomes-official-today/|date=2016-09-07|access-date=2022-04-28|website=TechCrunch|language=en-US}}</ref> The Converged Platform Division of EMC is currently known as the Converged Platform and Solutions Division of Dell EMC.
 
By February 2018, Dell EMC announced VxBlock System 1000<ref>{{cite web | url=https://www.zdnet.com/article/dell-emc-unveils-new-vxblock-system-1000/ | title=Dell EMC unveils new VxBlock System 1000 | website=[[ZDNet]] }}</ref> as a perpetual architecture<ref>{{cite web | url=https://www.dell.com/en-us/dt/converged-infrastructure/converged-systems.htm#tab0=0&tab1=0 | title=VxBlock Converged Infrastructure Systems }}</ref> and the Dell Technologies converged systems business achieved $6.51B USD of market sales during 2020 according to [[International Data Group]].<ref>{{Cite web|url=https://www.dell.com/en-us/dt/converged-infrastructure/converged-systems.htm#tab0|title=0&tab1VxBlock Converged Infrastructure Systems|website=0&pdf-overlay=//www.delltechnologiesdell.com/asset/en-us/products/converged-infrastructure/industry-market/idc-business-value-vxblock-white-paper.pdf {{Bare URL PDF|date=September 2022}}</ref>
 
==Products and services==
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[[File:EMC Vblock 300 FX.jpg|thumb|alt=A Vblock 300 FX at CA World|Vblock 300 FX at VCE (company) booth during CA World 2011.]] Vblock systems consist of storage and provisioning from [[EMC Corporation|EMC]], switches and servers from [[Cisco]], and [[VMware]] virtualization software running on the servers. In addition, Vblock system customers' support calls are handled by VCE.
 
Vblock had two series based on the following compositional elements:<ref name="bare_url_b">{{cite web| url=http://vmackem.co.uk/?p=553 | archive-url=https://web.archive.org/web/20161208004416/http://vmackem.co.uk/?p=553 | archive-date=2016-12-08 | title=VCE Vblock Update}}</ref><ref name="lightreading">{{Cite web|url=http://www.lightreading.com/video.asp?doc_id=216883|title=MakingRecent ofvideos Cloud&#124; Megapage Test1 --of 69 Cloud&#124; DataLight CenterReading}}</ref>
* EMC provides storage and provisioning
** VNX
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==== Customers ====
No confirmed numbers were announced publicly by VCE or its investors until 2013 <ref name="crn">{{Cite web|url=http://www.crn.com/news/networking/240004002/vce-taps-cisco-veteran-as-new-ceo.htm|title = VCE Taps Cisco Veteran as New CEO|date = 19 July 2012}}</ref> but when it was disclosed the numbers were provided conservatively as being over 800 customers in almost 60 countries with nearly 2000 VCE manufactured Vblock Systems sold.<ref name="vce">{{Cite web|url=http://www.vce.com/about/media/news?id=tcm:20-18846|title=Converged Infrastructure (CI)}}</ref><ref>{{Cite press releaseweb|url=httphttps://www.prnewswire.com/news-releases/vce-surpasses-2013-goal-of-1-billion-in-annual-sales1-accelerates-growth-in-q1-2014-258445551.html|title=VCE Surpasses 2013 Goal of $1 Billion in Annual Sales(1), Accelerates Growth in Q1 2014|website=www.prnewswire.com}}</ref><ref>{{Cite web|url=http://siliconangle.com/blog/2014/04/11/vce-passes-1b-with-50-year-to-year-growth/|title = VCE passes $1B with 50% year-to-year growth|date = 11 April 2014}}</ref> Because of the lack of a manufactured physical and logical build on an actual VCE manufacturing floor, previous deployments in 2009 and early 2010 of what were called or referred to as Vblock (often with various use of upper and lower case spelling) are not considered to be Vblock by some pundits and infrastructure professionals <ref name="bythebell">{{Cite web|url=http://www.bythebell.com/2010/10/customers-embracing-vblocks-but-vce-sales-harmony-a-work-in-progress.html|title = Customers embracing Vblocks, but VCE sales harmony a work in progress|date = 19 October 2010}}</ref> since these so-called reference architectures varied greatly from project to project when compared to late 2010 manufactured Vblock. Anecdotally, institutions and companies using Vblock have been involved in published testimonials.<ref name="ventech">{{cite web| url=http://www.ventech.com/2012/07/vblock-video-success-story-ms-community-college-board/ | archive-url=https://archive.today/20130205212638/http://www.ventech.com/2012/07/vblock-video-success-story-ms-community-college-board/ | url-status=dead | archive-date=February 5, 2013 | title=Unknown}}</ref><ref name="bare_url_f">{{Cite web|url=httphttps://campustechnology.com/articles/2011/09/15/taking-college-it-out-of-the-hardware-business.aspx|title=Taking College IT Out of the Hardware Business -|website=Campus Technology}}</ref><ref>{{cite web |url=http://blocksandbytes.com/2013/01/27/vce-vblock-1st-year-in-review/ |title=VCE vBlock – 1st Year in Review {{!}} blocksandbytes |website=blocksandbytes.com |url-status=dead |archive-url=https://web.archive.org/web/20130302112731/http://blocksandbytes.com/2013/01/27/vce-vblock-1st-year-in-review |archive-date=2013-03-02}}</ref>
 
===Enterprise-level systems===
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==References==
{{Reflist|30em}}
 
== External links ==
* {{Official website|http://www.vce.com/}}
 
{{EMC}}
 
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[[Category:Dell EMC Corporation]]
[[Category:2014 mergers and acquisitions]]
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[[Category:Defunct computer hardware companies]]
[[Category:Defunct software companies of the United States]]
[[Category:Software companies established in 2009]]