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The Factors That Accelerated VMware’s NSX Traction

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NSX strategy to capture a bigger piece of the cloud space pie

Earlier in the series, we discussed VMware’s (VMW) performance in fiscal 3Q18. Its partnership with DXC Technology and the VeloCloud acquisition is expected to benefit NSX. The VeloCloud acquisition, which was completed in December, is expected to complement NSX. It could enhance the company’s network strategy by extending its network potential from the data center to endpoint implementations. The acquisition has not only upped VMware’s position in the SDN (software-defined networking) space but has put the company in an adjacent position with Cisco Systems (CSCO) in the SD-WAN (software-defined wide-area network) space.

NSX was initially optimized for VMware’s vSphere suite of server virtualization offerings.

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In 2016, NSX-T was launched. NSX-T is a version of NSX that not only addresses the surge in emerging data center technologies but also increases the adoption of public clouds. It supports other hypervisors such as open source KVM. KVM is a default hypervisor in OpenStack that’s owned by Red Hat (RHT).

New versions of NSX launched with enhanced features

In August 2017, VMware launched VMware NSX Cloud. NSX Cloud is a service that provides security and networking for applications running in multiple cloud environments through a common API (application programming interface) and a single management console. That enables the expansion of NSX beyond the walls of the local infrastructure to major cloud providers. In simpler terms, NSX expands on-premise into the cloud.

VMware Cloud on AWS (Amazon Web Services), an offering that is the result of the VMware-Amazon (AMZN) partnership, is powered by VMware Cloud Foundation. NSX, vCenter Server, and VSAN form VMware’s Cloud Foundation, which is part of VMware’s cross-cloud architecture.

In November 2017, VMware released NSX-T 2.0 and added native support for micro-segmentation and containers. It’s expected to follow up with NSX 2.1 by February 2018.

NSX for vSphere and NSX-T are the two versions of VMware NSX. According to Pat Gelsinger, VMware’s CEO (chief executive officer), VMware’s vSphere has an 80% market share in the corporate data center space. NSX-T is focused on cloud-native environments and multi-hypervisors.

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