In this episode we talk with Lee Caswell (@LeeCaswell), Vice President of Product, Storage and Availability Business Unit, VMware. This is the second time Lee’s been on our show, the previous one back in April of last year when he was with his prior employer. Lee’s been at VMware for a little over a year now and has helped lead some significant changes in their HCI offering, vSAN.
VMware vSAN/HCI business
Many customers struggle to modernize their data centers with funding being the primary issue. This is very similar to what happened in the early 2000s as customers started virtualizing servers and consolidating storage. But today, there’s a new option, server based/software defined storage like VMware’s vSAN, which can be deployed for little expense and grown incrementally as needed. VMware’s vSAN customer base is currently growing by 150% CAGR, and VMware is adding over 100 new vSAN customers a week.
Many companies say they offer HCI, but few have adopted the software-only business model this entails. The transition from a hardware-software, appliance-based business model to a software-only business model is difficult and means a move from a high revenue-lower margin business to a lower revenue-higher margin business. VMware, from its very beginnings, has built a sustainable software-only business model that extends to vSAN today.
The software business model means that VMware can partner easily with a wide variety of server OEM partners to supply vSAN ReadyNodes that are pre-certified and jointly supported in the field. There are currently 14 server partners for vSAN ReadyNodes. In addition, VMware has co-designed the VxRail HCI Appliance with Dell EMC, which adds integrated life-cycle management as well as Dell EMC data protection software licenses.
As a result, customers can adopt vSAN as a build or a buy option for on-prem use and can also leverage vSAN in the cloud from a variety of cloud providers, including AWS very soon. It’s the software-only business model that sets the stage for this common data management across the hybrid cloud.
VMware vSAN software defined storage (SDS)
The advent of Intel Xeon processors and plentiful, relatively cheap SSD storage has made vSAN an easy storage solution for most virtualized data centers today. SSDs removed any performance concerns that customers had with hybrid HCI configurations. And with Intel’s latest Xeon Scalable processors, there’s more than enough power to handle both application compute and storage compute workloads.
From Lee’s perspective, there’s still a place for traditional SAN storage, but he sees it more for cold storage that is scaled independently from servers or for bare metal/non-virtualized storage environments. But for everyone else using virtualized data centers, they really need to give vSAN a look.
Storage vendors shifting sales
It used to be that major storage vendor sales teams would lead with hardware appliance storage solutions and then move to HCI when pushed. The problem was that a typical SAN storage sale takes 9 months to complete and then 3 years of limited additional sales.
To address this, some vendors have taken the approach where they lead with HCI and only move to legacy storage when it’s a better fit. With VMware vSAN, it’s a quicker sales cycle than legacy storage because HCI costs less up front and there’s no need to buy the final storage configuration with the first purchase. VMware vSAN HCI can grow as the customer applications needs dictate, generating additional incremental sales over time.
VMware vSAN in AWS
Recently, VMware has announced VMware Cloud in AWS.What this means is that you can have vSAN storage operating in an AWS cloud just like you would on-prem. In this case, workloads could migrate from cloud to on-prem and back again with almost no changes. How the data gets from on-prem to cloud is another question.
Also the pricing model for VMware Cloud in AWS moves to a consumption based model, where you pay for just what you use on a monthly basis. This way VMware Cloud in AWS and vSAN is billed monthly, consistent with other AWS offerings.
VMware vs. Microsoft on cloud
There’s a subtle difference in how Microsoft and VMware are adopting cloud. VMware came from an infrastructure platform and is now implementing their infrastructure on cloud. Microsoft started as a development platform and is taking their cloud development platform/stack and bringing it to on-prem.
It’s really two different philosophies in action. We now see VMware doing more for the development community with vSphere Integrated Containers (VIC), Docker Containers, Kubernetes, and Pivotal Cloud foundry. Meanwhile Microsoft is looking to implement the Azure stack for on-prem environments, and they are focusing more on infrastructure. In the end, enterprises will have terrific choices as the software defined data center frees up customers dollars and management time.
The podcast runs ~25 minutes. Lee is a very knowledgeable individual and although he doesn’t qualify as a Greybeard (just yet), he has been in and around the data center and flash storage environments throughout most of his career. From his diverse history, Lee has developed a very business like perspective on data center and storage technologies and it’s always a pleasure talking with him. Listen to the podcast to learn more.
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Lee Caswell, V.P. of Product, Storage & Availability Business Unit, VMware
Lee Caswell leads the VMware storage marketing team driving vSAN products, partnerships, and integrations. Lee joined VMware in 2016 and has extensive experience in executive leadership within the storage, flash and virtualization markets.
Prior to VMware, Lee was vice president of Marketing at NetApp and vice president of Solution Marketing at Fusion-IO (now SanDisk). Lee was a founding member of Pivot3, a company widely considered to be the founder of hyper-converged systems, where he served as the CEO and CMO. Earlier in his career, Lee held marketing leadership positions at Adaptec, and SEEQ Technology, a pioneer in non-volatile memory. He started his career at General Electric in Corporate Consulting.
Lee holds a bachelor of arts degree in economics from Carleton College and a master of business administration degree from Dartmouth College. Lee is a New York native and has lived in northern California for many years. He and his wife live in Palo Alto and have two children. In his spare time Lee enjoys cycling, playing guitar, and hiking the local hills.