VMware has estimated that the software-defined data centre, end user computing and the hybrid cloud market globally has a total addressable market opportunity of $50 billion by 2016.
This was revealed by Andy Hunt, VMware's EMEA VP for partners and general business, on the sidelines of the VMworld 2013 Conference, in Barcelona, yesterday.
Hunt noted that the company wants to use its channel to drive revenue in IT as a service in these three key areas - software-defined data centres, hybrid cloud and end-user computing.
He explained that, by 2016, the company estimates the total addressable market globally to be $28 billion for the software-defined data centre, $14 billon for the hybrid cloud and $8 billion for end-user computing.
According to Hunt, VMware now has 33 000 partners across the EMEA region, up from 27 000 in the previous year. He pointed out that it is working with the partner ecosystem to understand the software-defined data centre concept. Two thirds of VMware's revenue is driven by channel partners, while the other third is driven by OEM partners, he noted.
The company recently appointed Dave O'Callaghan as senior VP for channel and alliances to drive growth, Hunt said.
O'Callaghan, who also attended the session, pointed out that VMware's go-to-market model starts with the customer. However, he said to reach out to the customers, the company relies on partners, who do 95% of the business in EMEA.
"Our goal is to ensure that partners build relationships with customers," said O'Callaghan. "Partners own customers through relationships." He added that VMware is actively investing in the value channel. "The more we jointly work together, the more we will be jointly rewarded. The more a channel partner invests in VMware, the greater the reward."
O'Callaghan revealed that the company has changed the way it registers partners, pointing out that, previously, a prospective partner would simply go online and register, but now they require a special enrolment programme to ensure certain competencies are met before being promoted to a professional partner, enterprise partner or premium partner.
Also speaking during the session, Juergen Kuehlewein, VMware's senior director for EMEA channels and general business, noted that the company has come up with definitive rules of engagement when dealing with customers. According to Kuehlewein, whereas in the past VMware dealt directly with its enterprise customers, now partners are involved in this segment too alongside the general business segment.
"It is important that we discuss rules of engagement with partners, as this gives them full authority on things like pricing," he noted. The VMware Partner Network is the framework for collaboration between VMware and its partners, offering a wide range of benefits, certifications, accreditations, and rewards to ensure mutual success, he added.
The VMware Partner Network encompasses a broad range of partner types to meet the needs of every customer, Kuehlewein concluded.
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