Virtual Computing Environment: Difference between revisions

Revision as of 05:20, 26 July 2024

Revision as of 23:59, 13 February 2025

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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>

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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= https://www.zdnet.com/article/cisco-emc-tout-vce-market-share-but-report-losses/ |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 Unknown]{{Dead link|date=February 2022| fix-attempted=yes}}</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/>