VMware has invested $20 million in Terremark, a sign the virtualization company is moving beyond its traditional market to become a cloud services provider.
According to Network World, VMware and Terremark already have an existing relationship. VMware provides Terremark with its virtualization technology to power its enterprise cloud computing platform.
The VMware platform allows Terremark to provide a private cloud service, which rely on its own data centers and a virtual network to serve clients.
The partnership serves Terremark well. According to Gartner, Terremark ranks as one of the leading North America web hosting companies.
With the investment, VMware more directly competes with Amazon and Google, which provide public cloud sharing services.
What is the Difference Between A Public and Private Cloud?
A private cloud service depends on its data centers and virtual networks to provide client with computing power for its applications. The cloud, in essence, rests behind the firewall. A private cloud is considered to be highly dependent on virtualization technology.
Google’s public clouds use shared resources to power its applications. They maintain there is not the need for virtualization. They do the opposite. They tie systems together to create in essence one, large supercomputer.
According to Google:
.Additionally, enterprise hardware components are designed to be very reliable, but they can never be 100% reliable, so enterprises spend a lot of time and money on maintenance. In contrast, we expect the hardware to fail, and design for reliability in the software such that, when the hardware does fail, customers are just shifted to another server. This allows us to further lower the cost of our servers by using commodity parts and on-board storage. We also design the systems for easy repair such that, if a part fails, we can quickly bring the server back into service.
Who will win out? VMware is banking on the enterprise requirements for data security. And they have their backers.
Jim Whitehurst, president and chief executive officer of enterprise open-source software vendor Red Hat, said last week in Washington that private cloud services provide all the benefits of a public cloud but without the security and privacy headaches.
“What is the benefit of a public cloud? For most large agencies in the government, or even medium-sized agencies, there is a not a lot of purchasing cost advantage with going to a third-party cloud,” Whitehurst said. “The real benefit is getting high utilization of your existing infrastructure and flexibility around that.”