Although it’s no threat to VMware yet, the growth of the Open Virtualization Alliance (OVA) has been impressive. Formally announced in May, the OVA has grown from its original seven founding members — its four Governing Members (Red Hat, Intel, HP, and IBM), plus BMC, Eucalyptus Systems, and Novel (SUSE) — expanding with the addition of 65 new members in June, finally encompassing more than 200 members as of yesterday.
The overriding objective of the OVA is to popularize the open-source Kernel-based Virtual Machine (KVM) so that it can become a viable alternative to proprietary server-virtualization offerings, namely market leader VMware. To achieve that goal, OVA is counting on broad-based industry support from large and small players alike as it works to accelerate the development of an ecosystem of KVM-based third-party solutions. In conjunction with that effort, OVA also is encouraging interoperability, promoting best practices, spotlighting customer successes, and generally raising awareness of KVM through marketing events and initiatives.
Give the People What They Want
While VMware isn’t breaking out in a cold sweat or losing sleep over OVA, it’s clear that many members of OVA are anxious about the potential stranglehold VMware could gain in cloud infrastructure if its virtualization hegemony goes unchecked. In that regard, it’s notable that certain VMware partners — IBM and HP among them — are at the forefront of OVA.
If customers are demanding VMware, as they clearly have been doing, then that’s what IBM and HP will give them. It’s good business practice for service-based solution providers to give customers what they want. But circumstances can change — customers might be persuaded to accept alternatives to VMware — and IBM and HP probably wouldn’t mind if they did.
Certainly VMware recognizes that its partners also can be its competitors. There’s even well-worn industry phrase for it: coopetition. At the same time, though, IBM and HP would welcome customer demand for an open-source alternative to VMware, which explains their avidity for and evangelization of KVM.
An early lead in a strategic market can result in long-term industry dominance. That’s what VMware wants to achieve, and it’s what nearly everybody else — excluding VMware’s majority shareholder, EMC — would like to prevent. Industry giants IBM and HP have seen this script play out in the client-server era with Microsoft’s Windows, and they’re not keen to relive the experience in cloud computing.
VMware’s customer appeal and market differentiation derive from its dominance in server virtualization, a foundation that allows it to extend up and out into areas that could give it a stranglehold on cloud computing’s most valuable technologies. Nearly every vendor with a stake in the data center is keeping a wary eye on VMware. Some, such as Microsoft and Oracle, are outright competitors seeking to cut into VMware’s market lead, while others — such as HP, IBM, and Cisco — are partnering pragmatically with VMware while pursuing strategic alternatives and contingency plans.
Commoditizing Competitor’s Edge
In promoting an open-source alternative as a means of undercutting a competitor’s competitive advantage, IBM and its OVA cohorts are taking a page from a well-worn strategic handbook. This is what Google unleashed against Apple in mobile operating systems with Android, and what Facebook is trying to achieve against Google in cloud data centers with its Open Compute Project. For OVA’s charter members, it’s all about attempting to commoditize a market leader’s competitive differentiation to level the playing field — and perhaps to eventually tilt it to your advantage.
IBM and HP have integration prowess and professional-services capabilities that VMware lacks. If they can nullify virtualization as a strategic asset by commoditizing it, they relegate VMware to a lesser role. However, if they fail and VMware’s differentiation is maintained and extended further, they risk losing a great deal of long-term account control in a burgeoning market.
KVM Rather than XenServer
Some might wonder why the open-source server virtualization alternative became KVM and not, say, XenServer, whose custodian, XenSource, is owned by Citrix. One of the reasons could be Citrix’s relatively warm embrace by Microsoft. When Gartner released its Magic Quadrant for x86 Server Virtualization Infrastructure this summer, it questioned whether Citrix’s ties to Microsoft could result in XenServer being compromised. Microsoft, of course, has its own server-virtualization entry in Hyper-V.
In the end, the OVA gang put down its money on KVM rather than XenServer, seeing the former as a less-complicated proposition than the latter. That appears to have been the right move.
Clearly OVA has experienced striking growth in just a few months, but it has a long way to go before it meets the strategic mandate envisioned by its founders.