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Summary:

A claim by a third party that PayPal, a big VMware customer, was dumping VMware for OpenStack, touched off firestorm, this week.

So this is weird. On Wednesday night, a VMware exec posted a statement from PayPal on his blog outlining PayPal’s plans to pursue a hybrid cloud strategy.

The statement VMware ran (with permission) from Nat Rajesh Natarajan, PayPal’s VP of platform engineering and operations, appeared two days after stories surfaced here and here about PayPal dumping VMware in favor of OpenStack. That juicy tidbit was part of stories outlining Mirantis’ plans to open source some of its own OpenStack technology. Mirantis is the integrator implementing the OpenStack project at VMware. It didn’t take long for the backtracking to begin.

And then, VMware weighed in, on behalf of itself and Paypal, in a blog by Bogomil Balkansky, VMware SVP of cloud infrastructure platform, with a quote from Natarajan:

 “PayPal is focused on delivering agile platforms that seamlessly scale across multiple cloud environments. Our initiative with OpenStack is intended to enable agility, innovation and choice. We’re not interested in a “rip and replace’ approach. In fact, this collaboration will help us utilize robust virtualization technologies such as VMware. They are a valued PayPal partner, and we intend to continue leveraging their core strengths in our cutting edge cloud environment.”

Oooookayyyyy. Does anyone else find it odd that a VMware senior vice president felt the need to quote a customer saying that VMware remains “a valued partner?”  This just shows how fraught the notion of technology changeovers can be for incumbent vendors. I’ve asked PayPal again for further comment on the VMware blog — which was sent to me by PayPal, by the way — and will update when it comes.

Balkansky went on to write: “Yes, PayPal has given us permission to post Nat’s words. We’d never speak on their behalf … this is their story to tell.”

So now I guess we’ll have to wait for PayPal to tell it.

  1. Vmware is looking really scared and paranoid over this. They must be eyeing the cloud market with deep fear. I know Geltzinger made a speech not too long ago to Vmware partners warning them about how dangerous the cloud is to Vmware and singling out AWS as a major threat.

    From what I can tell none of the major cloud companies like AWS, HP Cloud, Azure, Rackspace, etc use Vmware. They mostly use KVM and Xen, and Microsoft of course uses Hyper-V.

    As more business migrates to the cloud Vmware will get cut out of the pricture. Even in the private cloud market I don’t think Vmware will do so well.

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  2. VMware is expensive and in a slow but losing battle with open source technologies.

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