On 3 November 2009, Cisco Systems, EMC and VMware jointly announced that they will collaborate to create the Virtual Computing Environment (VCE) coalition. The announcement included four elements:

• Joint technology known as Vblock Infrastructure Packages, which integrate Cisco’s Unified Computing System (UCS) servers, Nexus 1000v switches, Cisco MDS, EMC storage (VMax or CLARiioN, depending on the model) and VSphere 4.0 from VMware
• Joint presales, professional services and customer services
• Acadia, a separate joint venture to build, operate and transfer Vblock technology for customers
• A framework to establish an ecosystem of system integrators and channel partners that Acadia will have to engage to deliver on VCE

This combined offering may be a precursor to future activity between these three vendors, which are all data center giants in their relevant domains. But their collaborative effort also highlights potential gaps and dependencies:

• It does not include a holistic, comprehensive management toolset of sufficient pedigree to displace an incumbent vendor. Too much dependence on BMC Software and other tool providers will position this offering against tools already available from the vendors and currently used by prospective customers.
• The coalition must generate activities with independent software vendors (ISVs) to validate solutions on Vblocks and the VCE architecture as they become proven within the market.
• The tightly integrated Vblock could potentially polarize the market for or against the three vendors, making it incumbent on these vendors to maintain and enhance their existing partners and ISVs.
• This offering does not sufficiently recognize or address the needs of mixed virtual and physical infrastructures that prospective customers have had to develop.

VCE is a major development in the two-year collaborative relationship between Cisco, EMC and VMware, delivering the fabric-based integration of computing, storage and network capability promised at the launch of Cisco's UCS. This is a serious offering that is suitable for massively replicated virtual machine deployments, and could enable the channel partners of all three companies to sell a complete infrastructure solution; however, its suitability for broader enterprise deployment will depend on its endorsement by key third parties. VCE could potentially force alternative providers such as Microsoft, HP, NetApp and Citrix to form competing joint ventures or alliances.

• Consider this solution if Cisco, EMC or VMware are strategic vendors for your virtualization implementation.
• If you are using solutions from other IT providers, validate this alternative against your existing solutions and needs.
• When evaluating this solution, focus on management and tool issues, which potentially will increase transition costs that could offset any potential savings.
• Challenge channel partners to demonstrate that they are able to accommodate technologies from three different vendors.

• "Vendor Focus for Cisco: Strategy Moves to a Five-Pronged Approach"— Cisco's execution on its five key initiatives — including virtualization, collaboration, video, Cisco 3.0 and globalization — will determine the company's fortunes during the next decade. By Ken Dulaney
• "Hype Cycle for Virtualization, 2009"— Although the disruption that virtualization causes among IT users and providers leads to significant levels of hype, the technology can improve utilization of resources and is shifting toward greater agility. By Brian Gammage and others

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