Enterprise technology is at a pivotal moment as companies manage the rapid convergence of generative AI, cloud computing and evolving infrastructure demands.
The move from traditional systems to cloud-based solutions is more than just a technology upgrade; it fundamentally changes how businesses operate and compete. As organizations embrace these advancements, they are not only rethinking their strategies for scalability and efficiency, but also redefining the very fabric of how they operate in a digitally-driven world.
TheCUBE's John Furrier, Rob Strechay and Dave Vellante discuss enterprise technology.
“While the market is moving to industry solutions and the AI generation is changing the game, there are risks that are increasing the risk factor,” said John Farrier (pictured left), executive analyst at CUBE Research. “There's a big dynamic in the market right now where cloud is the next generation to be specific, which means if your infrastructure is underperforming, you're going to have serious problems.”
Farrier spoke with Dave Bellante, principal analyst at theCUBE Research (right), and Rob Strechey, principal analyst at theCUBE Research (center), during VMware Explore, exclusively on SiliconANGLE Media's livestreaming studio, theCUBE. The two discussed how enterprise technology is undergoing a major transformation as companies adapt to the convergence of generative AI, cloud computing and evolving infrastructure, highlighting the need for companies to rethink their strategies and maintain operational stability amid this change.
The changing dynamics of enterprise technology
Traditional models of enterprise IT are being re-evaluated as companies look to leverage new technologies and move away from legacy systems to more dynamic, scalable, cloud-based environments. This shift is seen as necessary to remain competitive, especially as generative AI continues to impact how companies approach problem solving and operational efficiency.
“That's because the old legacy products are declining faster than the new ones are growing,” Bellante said. “But IBM has great data technology with watsonx and the full resurgence of Watson for data and governance. I'll partner with them. To me, that's the strongest strategy.”
Instead of engaging with a broader ecosystem, efforts are now focused on catering to top-tier customers who are leading the adoption of these new technologies. This shift marks a potential inflection point in the industry, where older ways of operating are being replaced with a more streamlined, efficient approach, according to Vellante.
“This is a completely different event. The focus is on our top customers,” he said. “The idea is to understand the entire VCF stack. The vibe at this year's show is totally different.”
Challenges and Opportunities in a Cloud-Driven World
Another key aspect is the challenges enterprises face as they make this transition. Cloud service integration, especially in the context of VMware's VCF stack, is seen as a double-edged sword. On the one hand, it offers great potential for growth and innovation. On the other, it comes with big challenges, especially in maintaining the vibrant ecosystem that has traditionally supported enterprise IT, Strechay says.
“I think everyone was focused on how to manage VMware,” he said. “Now I think it's about how to manage VMware in a cloud sense and all the different pieces that come with that. Maybe you're using a private AI stack, maybe you're not. Maybe you're using some of the Microsoft OpenAI on (Azure VMware Solution) instead. And I think that's going to be an opportunity for the channel.”
The future of enterprise technology will involve greater integration of AI and cloud services. However, this transition is not without risk. Companies like VMware are at a crossroads and will need to adapt quickly to maintain their market position. Partnerships and strategic alliances, especially in areas like data management and AI, can be critical to staying competitive in this rapidly evolving environment.
“I think the opportunity for VCF is to say, 'We're a private cloud operation that complements public cloud architecture and sets up an edge configuration that's coming soon,'” Furrier says. “We're not dismissing the AI opportunity, given the licensing dynamics, but we're going to focus on cost of ownership. We're definitely going to demonstrate value by showing tangible cost savings and total cost of ownership.”
Below is the full video interview, which is part of SiliconANGLE and theCUBE Research's coverage of VMware Explore.
Photo: SiliconANGLE
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