Virtualization: What's next?

When it comes to virtualization, VMware has built up quite a strong position in the SAP market over time. What's new, what's on the VMware-SAP plan for this year - especially in light of the Dell acquisition?

Reiner Mayer: Together with SAP, we are committed to driving forward what we have achieved. We are currently working on the production release of vSphere version 6.0 for Hana. Compared to version 5.5, we are taking a different approach.

In particular, the release process is to be shortened by means of an already running and self-contained program. Here, enterprise customers, including DAX customers, have been defined to accompany SAP and VMware with large virtualized Hana systems into production, including support.

These customers primarily use SAP Business Suite on Hana and BW on Hana , preferably with certified 8-socket Intel Haswell servers. Here we are talking about large Hana instances with up to 4 TB of compressed data.

The first customers are already live. We are also working intensively with SAP and our partners on the topics of network virtualization and IT infrastructure security as well as Virtual SAN and the automation of SAP operations with our vRealize Automation Suite.

As far as the Dell-EMC acquisition is concerned, I can only speak for VMware. In the past, we acted very independently of EMC - which is also underlined by the many existing partnerships in both the server and the storage environment. This will not change. As far as the product portfolio is concerned, we will continue to operate completely independently.

Will Dell, EMC and VMware's SAP competence centers merge?

Mayer: VMware has a global SAP Alliance team that is managed from the USA. Of course, there are VMware technology specialists and dedicated SAP support at the partner port in Walldorf. From today's perspective, this organization will be retained after the Dell-EMC merger.

VMware has never had a classic SAP CC in the partner port comparable to EMC. If there are customer benefits in the interaction with Dell and EMC, then we will of course act together.

Virtually all SAP partners are hoping that Hana and S/4 Hana in particular will provide new or additional growth impetus. VMware too?

Mayer: Yes, for sure. Our Hana Prod certification around two years ago enabled us to win a very large number of SAP Hana customers. And the number of customers continues to grow steadily. Customers attest that they are achieving cost savings or productivity gains with VMware. For example, 45 percent cost reductions in Hana deployments, in some cases even 60 percent.

This certification enabled us to achieve growth not only in the Hana environment, but also with SAP Classic under Linux. Customers who had been hesitant about virtualization have made their plans more concrete. With S/4 Hana, I expect the virtualization trend to continue.

This is also because the topics of mobile and app management will gain in importance - in addition to the general topic of digital transformation. VMware sees itself in an excellent position in this regard. Because of our Software-Defined Data Center product portfolio, but also because of specific solutions in the end-user computing area that we can offer our SAP customers.

We are therefore able to deliver end-to-end virtualization including end-to-end security. This gives VMware a unique selling point on the market.

SAP is increasingly relying on open source. What if SAP even prefers or pushes KVM or XEN more strongly when it comes to Hana virtualization - for whatever reason? Won't VMware then have to fear for its sinecure?

Mayer: I think a flexible and productive Hana operation is really only possible on the basis of virtualization. The fact that companions are investing in virtualization clearly shows the direction.

Yes, VMware does server virtualization - but it also offers tools and solutions that provide SAP customers with added value in infrastructure virtualization. For example, with VMware, SAP customers can also implement high-availability concepts in conjunction with Suse Linux.

And that simply and quickly. The interaction of OpenStack and VMware is possible without any problems.

How relevant will virtualization be in an S/4 Hana-on-premise architecture?

Mayer: In my view, virtualization will achieve exactly the same significance with S/4 Hana as with the classic Business Suite. I don't see anything specific there. Therefore, S/4 Hana will be virtualized on premise in exactly the same way as classic SAP ERP systems.

And Hana in the AWS or Azure cloud no longer needs virtualization? What is VMware's answer?

Mayer: Virtualization actually always makes sense. The important thing is that customers can decide at any time whether they want to use cloud or which cloud concept. The SAP customer can always decide anew whether to roll out his system at an SAP cloud service partner or in his data center. Quite simply for reasons of flexibility.

If VMware solutions are used, you can switch ad hoc, so to speak. What we find with our vRealize Business Management solution is that SAP Hana customers have similar costs with virtualization as when they use a public cloud solution such as AWS.

Our service provider partners, who build on our stack, can also offer comparable SAP cloud services at Amazon price structures or in a similar price range - and usually at better SLAs.

For example, SAP customers and SAP cloud service providers can achieve up to 60 percent cost savings in the traditional SAP storage area when using VSAN and can automate SAP operations and provide the necessary security and availability SLAs by means of network virtualization with NSX. On top of that, it is a fact that customers can also integrate AWS into our vRealize Automation Suite.