AWS On-Premise a Disadvantage for Legacy Hardware Vendors

Cloud Computing

AWS-300x189 AWS On-Premise a Disadvantage for Legacy Hardware VendorsThe VMware-Amazon Web Services (AWS) relationship seems to be growing significantly since the announcement of a partnership between the companies two years ago.
The AWS Re: Invent event held earlier this week has witnessed the companies announcing the AWS Outposts servers who will be running customers’ on-premises data centers in the coming days, creating a disadvantage for legacy hardware vendors like Dell. In the interaction round, the CFO of Dell Technologies, Tom Sweet has downplayed this idea which states that AWS Outposts will cut through Dell’s networking and server businesses.
Later, during the VMware’s earnings call, CEO Pat Gelsinger expressed that this Outpost announcement is the third chapter three in the company’s relationship. VMware officials anticipate that by 2020 the company’s revenue will grow by 12 percent because of increased sales from their hybrid cloud. He also mentioned that the new VMware Cloud on AWS customer also includes TEPCO, Whirlpool, JetBlue, and IHS Markit. This is not only in the AWS environment but also for on-premise as well.