If you are not following the blogs from our recently acquired team at VKernel, you may want to. And I thought I would share this one in particular.
Anyone in the systems management space is aware of "The Big 4". IBM, BMC, HP, CA have all been the big boys in terms of market share, but there are many in the industry that think they are asleep at the wheel when it comes to addressing Virtualization and the impact it has on performance and capacity management.
Have a read and let us know your thoughts. I've basically just copied what Bryan Semple at VKernel wrote.
VKernel's acquisition two weeks ago by Quest sparked some interesting comments on our blog and tweets by analysts. Bernd Harzog’s tweet said it best:
@Bernd_Harzog 16 Nov Software acquires #vKernel https://www.virtualizationpractice.com/news-quest-software-acquires-vkernel-13554/ Good reaction to #VMware vC Ops. #CA, #BMC, #IBM, & #CA remain clueless
@Bernd_Harzog 15 Nov #CA Starts the Race To Self-Destruction Among the “Big Four” in #VMware Management. https://www.virtualizationpractice.com/ca-starts-the-race-to-self-destruction-among-the-big-four-in-virtualization-management-13520/ #IBM, #BMC, & #HP also toast
There is some data to support this. From a statistical standpoint, IDC revealed in their 2010 report on virtualization management software that Quest was number three behind only Microsoft and VMware in virtualization management revenue. The old big four of systems management have been replaced by the “Virtualization Three” or v3– Microsoft, VMware, and Quest. VKernel’s acquisition will only increase Quest’s lead from the other players and solidify our strong number three position from a revenue standpoint. Better yet, Quest offers the only hypervisor neutral platform that can go from spindle to application across not only VMware, but also Hyper-V and Red Hat. It is a powerful product portfolio that the Big Four do not have.
What about the other various start-ups and smaller companies left in the space? The market is clearly consolidating. These struggling companies need to either quickly assemble broader product portfolios and attain critical mass, or they risk the markets evolutionary extinction. Last week we saw a start-up require a $10M infusion of cash to keep operating. If you are not generating cash at this stage of the market development, your future is clearly uncertain.
The key now as VKernel moves forward with Quest is to make the merger additive for both our customers and Quest. We see a path forward to do this across two dimensions. First, Foglight's deep product functionality in application performance monitoring makes a logical complement to VKernel’s expertise in capacity planning. Second, VKernel’s simple to download, affordable applications that provide immediate measurable value complements Quest’s enterprise/field based model. So the acquisition provides both complementary product expertise and complementary sales channels.
The Big 4 are missing in action. The smaller start-ups have significant business risk. The v3 is here to stay and Quest's recent acquisition of VKernel will only increase our lead across multiple dimensions. Long live the v3.