Shulou(Shulou.com)06/02 Report--

At VMware, for example, the virtual machine giant reported that its second-quarter revenue rose 13% year-on-year to $2.17 billion, and the company's revenue and earnings per share beat expectations.

When people talk about the achievements of emerging cloud computing manufacturers such as Salesforce and Amazon, the established manufacturers represented by VMware, HPE and Cisco are also carrying out their own transformation and changes, and have made some progress. At VMware, for example, the virtual machine giant reported that its second-quarter revenue rose 13% year-on-year to $2.17 billion, and the company's revenue and earnings per share beat expectations.

In addition, these established vendors have made breakthroughs in the relatively emerging market of cloud system management. For example, analytics company IDC ranked VMware as the global leader in cloud system management market share based on its 2017 revenue. However, IDC's latest figures do not mean that VMware has an insurmountable lead in this young market.

According to IDC, VMware had a 22% market share, or about $907 million, by the end of 2017 because the company succeeded in getting businesses to use its vCloud suite and vSphere operations management services to build a private cloud. Analyst Stephen Elliot, one of the authors of the IDC report, said this week: "in the past few years, they [VMware] have really honed their sales strategy to the market."

However, VMware's position does not reflect its progress in competing with Cisco, another established supplier, which provides enterprises with the tools to interface public cloud workloads with applications running in the data center. However, many products related to public cloud connectivity provided by suppliers are too new, and IDC has not done any more research on this.

IDC said Cisco had about 6 per cent of the cloud systems management market, in part because it would complete the acquisition of AppDynamics in early 2017. The application performance management software provided by AppDynamics is becoming more and more important in maintaining cloud software.

IDC also expects Cisco and VMware to continue to lead the systems management market as enterprises significantly increase the use of public clouds to run business applications. The research firm expects global spending on public cloud services to grow at an annual rate of 22% between now and 2021, reaching $277 billion by 2021.

Cisco and VMware are facing strong competitors.

IDC believes that other vendors will compete fiercely with Cisco and VMware. Microsoft, for example, ranked second with a market share of 14% in 2017. Its success is due to the number of enterprises that apply SaaS Operations Management Suite (OMS) and Microsoft Azure cloud management services. OMS supports local IT systems, Azure and AWS public clouds.

Elliot said that as a software provider and one of the three major public cloud service providers, Microsoft's influence in the market will continue to grow. And the management tools built by Microsoft, AWS and Google on their platforms will affect the future development of cloud system management products.

Using the systems management tools of cloud providers may mean that companies spend less on third-party software. However, the money saved poses a problem.

"it's important to note that you have to use their platform to get it," Elliot said.

The total size of the cloud system management market grew 18% last year to $4.2 billion, according to IDC. IBM ranks third with 9 per cent, followed by BMC, Cisco, New Relic and HPE. Suppliers other than the top seven account for 35% of the market.

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