Virtual Computing Environment: Difference between revisions

Revision as of 18:52, 5 December 2021

Revision as of 15:56, 17 February 2022

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| logo = VCE (company) logo.svg

| type = [[Division (business)|Division]]

| foundation = 2009 <br /> 2011 (as VCE)

| industry = cloud platforms

| parent = [[EMC Corporation]]

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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= http://www.zdnet.com/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 web|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>http://www.eweek.com/storage/why-vces-newest-vblock-systems-demonstrate-innovation.html {{Dead link|date=February 2022}}</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>http://wikibon.org/wiki/v/VCE_Drives_Simplification_Past_$1B</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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==== 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 web|url=http://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}}</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">http://www.ventech.com/2012/07/vblock-video-success-story-ms-community-college-board/</ref><ref name="bare_url_f">{{Cite web|url=http://campustechnology.com/articles/2011/09/15/taking-college-it-out-of-the-hardware-business.aspx|title=Taking College IT Out of the Hardware Business -}}</ref><ref>http://blocksandbytes.com/2013/01/27/vce-vblock-1st-year-in-review/ {{Dead link|date=February 2022}}</ref>

===Enterprise-level systems===