VMware hits back at AWS with Cloud Credits

by CXOtoday News Desk    Jun 20, 2013

Cloud credits

Two weeks after it announced its offerings of hybrid cloud, VMware has now implemented Cloud Credits for its customers to get its hybrid cloud services. With this, virtualization managers “can reduce the rogue IT spend” on public cloud services, according to the program’s explanation on the VMware website, reported Informationweek.com.

“Rogue IT spend” refers to enterprise business units taking their computing needs to a fresh account at Amazon Web Services (AWS). The constant migration of enterprise computing from inside the datacenter, where VMware dominates, to the outside is worrying VMware.

It is to be noted that Cloud Credits came into existence February 26, long before VMware announced plans to open four of its own vCloud Hybrid Service datacenters May 21. The credits’ purpose is to bring the outside cloud spending into one account, where it can be more easily supervised and managed. According to a VMware data sheet, with the credits “you can take advantage of cloud economics and improve business agility while reducing IT capital expenditures on new equipment. [The credits] give you increased budget flexibility and you maintain control and visibility of your cloud spend through your My VMware account.”

Cloud Credits are purchased from VMware to set up a kind of revolving account for cloud use through a vCloud partner. In the U.S., one dollar purchases one cloud credit. In the U.K. one British pound equals one cloud credit for a service provider there. The Australian dollar governs Cloud Credits one-for-one in Australia and the yen in Japan.

There are three vCloud datacenter partners in the U.S., and hundreds of regional vCloud “powered” partners. However, only nine of the vCloud powered partners are approved to take Cloud Credits. The U.S. data center partners are AT&T, Bluelock and CSC. Dell dropped off the list on May 20 when it left the infrastructure-as-a-service business (although it is still listed on the VMware data center partner list). In Europe, Colt is a datacenter partner.

Datacenter partners implement the full VMware vCloud suite and represent the most fully equipped partners to serve VMware customers. Bluelock and Colt are listed as Cloud Credit program participants among data center partners. “VCloud-powered” partners represent a less full implementation but are prepared to take workloads from VMware customers.

There are no markdowns on cloud services or credits earned through the purchase of VMware products in the Cloud Credit program. It’s simply a more flexible way to administer the purchase of cloud services from within the VMware ecosystem. An account is set up in the MyVMware license and permissions management portal. The buyer deposits a Cloud Credit amount purchased from a service provider. The credits are good for one year from the date of purchase, it reported.