CIO/CTO Update

Worldwide spending on data center technology infrastructure and services exceeds $350 billion annually, according to McKinsey and Company estimates, with half of that spent on capital expenses and half on operating expenses.

Further, an estimated 70 percent or more of those costs are expended to maintain existing infrastructures, leaving 30 percent or less for new technology initiatives and applications that can provide breakthrough differentiation for businesses.

It is also estimated that approximately $85 billion, or 20 percent of this total market, can be addressed with data center virtualization and private cloud technology by 2015.

Cisco and EMC, together with VMware, have introduced the Virtual Computing Environment coalition, an unprecedented collaboration of three information technology (IT) industry leaders.

Virtual Computing Environment Coalition Charter
The coalition has been created to accelerate customers' ability to increase business agility through greater IT infrastructure flexibility, and lower IT, energy and real estate costs through pervasive data center virtualization and a transition to private cloud infrastructures.

Cisco, EMC and VMware have worked closely over the past year on a shared vision for the future of enterprise IT infrastructure -- private cloud computing. A private cloud is a virtual IT infrastructure that is securely controlled and operated solely for one organization.

It can be managed either by that organization or a third party, and it can exist on- or off-premise -- or in combination. Private cloud computing offers the controls and security of today's data center with the agility required for business innovation at substantially lower costs.

The Virtual Computing Environment coalition offers organizations of all sizes an accelerated approach to data center transformation with dramatic efficiencies that promise significant reductions in both capital and operating expenses. As a result, organizations will no longer have to choose between best-of-breed technologies and end-to-end vendor accountability.

Ecosystem Collaboration and Open Innovation
The Virtual Computing Environment coalition already has partners committed to the coalition. This includes representation from the entire partner ecosystem, including systems integrators, value added resellers, service providers, and independent software vendors.