A Golden Globe: How VMware can help resellers expand their Sphere

Advice 2009-08-19 16:18
Ratmir Timashev, president and CEO of

The channel has an opportunity to use virtualisation as a way to claw back revenue in low margin lines such as PC and server sales, says Ratmir Timashev, president and CEO of virtualisation management expert Veeam. Here he talks about how resellers can best take advantage of the opportunities offered by VMware’s vSphere.

Virtualisation is taking over the universe: IDC recently predicted that virtual machines will already outnumber physical servers by the end of 2009. The reasons for virtualisation’s rise even in a time of economic uncertainty are clear: by allowing multiple machines to run on a single physical box, IT departments can significantly cut hardware costs as well as reduce management time. Users of virtualisation products typically see a saving of 50 – 70 percent on resource costs: so with figures like these, the channel has had a fantastic opportunity to use virtualisation as a way to claw back revenue in low margin lines such as PC and server sales.

The latest hot virtualisation product to promise business for the channel is VMware’s vSphere, announced this April. vSphere is designed to bring virtualisation to SMEs as well as the large organisations that have been its traditional users, greatly expanding resellers’ potential market for virtualisation. Beyond this, VMware has used vSphere to put its stake in the ground as a platform for the much talked about Cloud Computing model. So by now even the deepest and darkest corners of UK IT communities must be aware of virtualisation and the potential benefits it can bring. Moreover, the noise generated by the launch of vSphere offers resellers a prime opportunity to make their own virtualisation hay.

As always, this doesn’t mean customers will automatically race to buy vSphere: there are a number of potential hurdles resellers must cross first. Potential first-time virtualisation customers may be put off by stories about the difficulty of managing large virtual infrastructures. Large enterprises may be unwilling to move on from their perfectly serviceable VMware environments. And many SMEs may just prefer to adopt virtualisation from the already familiar Microsoft brand and its Hyper-V technology. Nonetheless, resellers shouldn’t let this inertia discourage vSphere uptake. The real opportunity lies in making the transition to virtualisation as painless as possible. Put simply it’s all in the packaging. Like the way Apple now uses the App store to bring to life the capabilities of the iPhone, the same can be true with business-focused IT products: by bundling proven management tools with the core product, resellers can make the step up to vSphere a far more attractive prospect.

Hence where vSphere alone may appear to be a costly upgrade or risky new investment, the right packaging can address these challenges. For example, one major pain point for IT departments is managing virtual machine sprawl – thousands of ‘unknown’ virtual machines performing any number of critical tasks. In fact in a recent Vanson Bourne survey, 67 percent of IT directors claimed not to know how many virtual machines were on their systems. Bundling tools that allow customers to easily identify, categorise and track each machine across the IT estate will quickly address these very immediate concerns. Throw in the ability to easily back up the virtual environment and you’ll demonstrate how virtualisation can remain a long-term strategic asset to the company. Similarly, SMEs with smaller IT teams will want to ensure they have a predictable environment from day one. Packaging vSphere as a platform with advanced tools that allow customers to quickly identify and fix problems allows resellers to sufficiently differentiate vSphere.

Ultimately, bundling management tools that highlight how IT departments can ensure longevity of their vSphere investment is a well rounded sales strategy for the channel. By making the transition as attractive and painless as possible, resellers can make vSphere a much more tempting prospect for their customers.

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