February 21, 2013, 2:07 AM — VCE, the data center coalition formed by Cisco, EMC and VMware, this week expanded its product portfolio with low-end versions of its integrated infrastructure system, certification to run SAP software and new management capabilities.
The new offerings are intended to address markets VCE has not addressed before. The coalition was formed in 2009 to sell prepackaged Cisco servers and switches, EMC storage and VMware virtualization in an effort to accelerate the adoption of cloud computing infrastructure.
VCE's revenue in 2011 was $600 million, according to Gartner. The coalition is now on a $1 billion run rate and had a 57% share of the $388 million integrated infrastructure market in the second quarter of 2012, according to Gartner.
[ COMPETITIVE PARTNERS: VMware snubs partner Cisco for network virtualization ]
The future of VCE has come under speculation, however, given that the three investor companies are taking an increasingly competitive path individually. Indeed, Gartner states in a November 2012 report on the integrated infrastructure market that "the success of (VCE) is largely dependent on the interests of those individual companies remaining aligned."
VCE executives maintain that they continue to have the full commitment of the investor companies even though individually they become more competitive or divergent.
Up to now, VCE sold high-end versions of this integrated infrastructure with an average selling price (ASP) of around $2 million, according to analysts. The products unveiled this week bring that system to smaller data centers, and branch and remote offices with an ASP believed to be below $500,000.
They include the Vblock System 200 and 100. Vblock System 200 is targeted at midsize data centers and service provider managed customer premises. The Vblock System 100 is aimed at remote office/branch office deployments.