Virtustream Blog

Enterprise Moves to the Cloud

in Business, Executive

Enterprise-ready, data durability

We founded Virtustream in 2009 when we saw an unmet need in the marketplace for a public cloud service capable of handling the mission critical workloads of large enterprises. Traditional enterprise applications such as enterprise resource planning or supply chain management require better performance, guaranteed service levels and true consumption economics that are not generally available from public cloud providers like Amazon Web Services. Eight years later, our vision is being rewarded as large enterprises are moving to the cloud in spades.

In FY18, Virtustream is striving to achieve $1 billion in Committed Contract Value Order Bookings. This significant milestone says as much about the maturity of the enterprise cloud market as it does about the maturity of our business.

Today, the market for enterprise cloud solutions is growing faster than industry analysts predicted even one year ago. According to research firm Forrester, half of enterprises expect to use public cloud platforms by the end of this year. Analysts at Gartner report that half of all applications hosted in public clouds by next year will be considered mission-critical.

Look at the cloud service provider marketplace at large and you’ll see that it is pivoting toward the enterprise. That’s our wheelhouse, where we have a huge head start over general purpose public cloud providers. Five years from now, we believe there is a good chance that our addressable market opportunity will grow to be larger than $25 billion. The amount of market share we can take in a $25 billion infrastructure as a service segment really depends on how well we execute as a team — and within the broader team of Dell Technologies.

When we set out to launch our business back in 2009, we didn’t seek to copy AWS. As entrepreneurs, we didn’t see too many examples of new IT companies that had been successful simply following the tail lights of a frontrunner on the industry’s racetrack. We knew the market needed something more and different than just was another general purpose cloud utility like AWS.

So we did something unique. We took a different track and made it our mission to become the leader in the market for running mission-critical applications in the cloud. While AWS focused on serving scale-out cloud native applications, we architected our cloud platform to solve a different engineering problem: to run scale-up, I/O-centric enterprise applications that require higher availability and security. We created a public cloud service with private cloud attributes and attracted enterprise customers from the likes of Coca-Cola, Cargill, GE, Estee Lauder, Hershey’s, Domino Foods and many more, along with Federal government agencies such as the U.S. Department of Defense, the U.S. Department of Interior, the USDA, etc.

Our customers value Virtustream’s differentiated technology that competitors do not have. And the rich array of value added services we offer sets us apart from other cloud providers. Large enterprises want experts to help them through a challenging cloud journey. They need knowledgeable partners who can get them to their destination and minimize risk along the way.

Now, as a member of the Dell Technologies family of businesses, our growth strategy relies upon scaling our already successful business and expanding into new territory around the world and into new segments. This month we announced a new cloud solution for the health care market and greater integration between Virtustream and VMware cloud infrastructure to better serve growing demand for hybrid cloud deployments. We are also working on deeper integration between our infrastructure as a service offering and Pivotal Cloud Foundry as well as a Virtustream edition of Enterprise Hybrid Cloud built upon a Dell EMC hyper converged infrastructure appliance that will offer true hybrid cloud, optimized across on-premises enterprise private clouds, Virtustream’s public cloud, and third-party service provider clouds that leverage Virtustream’s cloud management and orchestration software, xStream. Leveraging these Dell Technologies assets will make us an even more formidable player in the marketplace. Our ambition is to be “the” leader in the market for running mission critical applications in the cloud for large enterprises. That is precisely where we see the market headed, and with the support of Dell EMC and Dell Technologies, we are very confident in our ability to get there together.

- Rodney
Connect with me on Twitter @rjrogers87

1 Source: Forrester, “Benchmark Your Enterprise Cloud Adoption, Benchmarks: The Cloud Computing Playbook” January 3, 2017
2 Source: Gartner, “Planning Guide for Cloud Computing”, Mindy Cancila, Douglas Toombs, Alan D Waite, Elias Khnaser, October 13, 2016