Yawn
We built this year's ago - VMWare ESX on HP server hardware, Windows 7 VMs, running Citrix with Xen desktop plus Netscaler hardware.
Putting it all in a box with a VBlock badge is not innovation.
VCE, the converged infrastructure lovechild of Cisco, EMC and VMware, is starting to get into interesting competitive tangles. The company's founding proposition was that it sells stacks-in-a-box comprised entirely of kit from Cisco and EMC, plus VMware software. Cisco's since reduced itself to a silent partner in the company …
VCE ain't cheap. Requirements for premium support, and other value added price increases over piece meal EMC/Cisco gear. However you get a single rack to install, power and uplinks. Then a single number to call for support L1/L2. With automatic transfers if needed for senior support at the respective OEM. There is value to it. But it depends on the needs of a customer.
What I'd like to hear is what VSPEX and their new BLUE gear means to VCE? Will KVM be an option next?
Cisco got out of the load balancing / ADC business several years ago when it discontinued ACE. Cisco has a strategic alliance with Citrix and this partnership is an important component of Cisco's ACI initiative. VCE is not getting into bed with a Cisco competitor, rather with a partner.