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VMware Announces Intent to Sell vCloud Air Business

OVH Group Acquire VMware vCloud Air

As of this morning, VMware has announced that it will be selling it’s public cloud offering, vCloud Air, to OVH Group.  With the recent announcement of the software giant’s partnership with AWS, this is less than surprising as the company looks to move away from their self-supported public cloud offering.  This bodes well for not only OVH Group, but all vCloud Air Network Partners as they no longer have to compete directly with VMware.  OVH Group, per it’s website, is a French based global cloud provider with 20 datacenters throughout Europe and North America with vCloud Air adding an additional 11 datacenters to their portfolio (many of which are US based) that will surely bolster OVH’s strategy in North America. The company has been a long standing vCloud Air Network partner with more than 200,000 VM’s running on a vSphere based infrastructure throughout their datacenters. OVH’s long standing partnership with VMware, recognized by VMware as “Service Provider of the Year” 2011-2014 and in 2016, is one that will ensure a smooth transition of vCloud Air’s current clients.

For VMware, this solidifies their strategy to innovate and support their Cross-Cloud Architecture and SDDC solutions for the data center, business mobility, and security.  Much like vSphere, vSAN, and NSX’s agnostic approach to the underlying hardware supporting it, VMware will look to embrace, support, and manage disparate public cloud offerings regardless of whether they are built on VMware’s own hypervisor or other industry standard hypervisors.   The company is clearly committed to embracing Hybrid IT with support for not only heterogeneous public cloud offerings, but for industry leading container platform offerings like Pivotal and Docker.  With solutions like NSX, vSAN, and the vRealize Suite, VMware’s goal is to move beyond the physical limitations of the hardware and embrace IT infrastructure (comprised of both private and public cloud) environment that is elastic and scalable, enabling organizations to meet the ever-increasing demands of the business.

I personally see this as a solid move for VMware that will allow the company to return to one of its core values, its agnostic position of providing best in-class software solutions for both on-premise and cloud based environments. Clients and applications will start to use, in some cases demand, a combination of both on-premise and cloud infrastructure services.  These demands will vary greatly and VMware wants to support the business needs to leverage the right services at the right time, regardless of where they reside.

For those of you currently using vCloud Air, VMware has released the following FAQ:

Q: How long will VMware sell and support vCloud Air?

A: OVH US will assume the operating and support of US customers at close and VMware will partner with OVH US to provide ongoing support and services to existing vCloud Air customers. OVH US will communicate their new processes and access mechanisms to sales as of Month, DD, 2017; the services and support transition will be communicated separately.

Q: How will OVH US sell and support vCloud Air?

A: As of the close date, VMware will enable OVH US to sell vCloud Air. Processes and systems to utilize for purchasing vCloud Air after this date will be communicated by OVH US. Support and services are business as usual in the immediate future.

Q: Are there any specific actions customers need to take to ensure a smooth transition?

A: There are no immediate actions required from customers at this time, and it is business as usual for now for support and services; a date for transition to OVH US infrastructure for services, and support will be determined and communicated in advance of any cutover.

Q: How does the acquisition by OVH US affect existing Enterprise License Agreements?

A: Customers should continue to engage with VMware, in business as usual mode for now. A date for transition to OVH US infrastructure for services and support will be determined and communicated in advance of any cutover. Customers will be updated at renewal on the steps to follow to reorder with OVH. VMware account managers can give guidance during the ELA renewal period.

Q: Is VMware going to transfer customer information to OVH?

A: Yes, customer account details will be provided to OVH US so that they can communicate regarding the reorder of this product. VMware will retain customer data provided in connection with this service in order to continue support during the transition period.

Q: How will current vCloud Air customers who were using the VMware Subscription Purchasing Program (SPP) to access vCloud Air move forward after this transaction? What happens to existing SPP Cloud Credits?

A: VMware will continue to manage SPP credits as a payment method for customers who purchased SSP credits prior to [Closing Date]. After [Closing Date], those customer may continue to purchase SPP credits for the vCloud Air Powered by OVH service until migration to an OVH data center.

Q: Will OVH maintain existing vCloud Air service level agreements?

A: Yes

Q: How are customers with data sovereignty requirements impacted by this transaction?

A: As OVH is acquiring the vCloud Air business from VMware, including U.S. and European data center and customer operations, customers and an enterprise-ready support team, there should be no changes for customers with data sovereignty requirements. The OVH data center footprint will actually enable OVH customers with operations in multiple countries greater opportunity to deploy workloads in country to meet sovereignty and/or regulatory requirements.

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