VMware has long been the established leader in enterprise virtualization. VMware's vSphere virtualization platform is used in 100 percent of the Fortune 100 companies and VMware has about 70 percent of the enterprise virtualization market. However, that success in virtualization has not necessarily translated into success into the cloud.
In the past, VMware has relied on partners to provide cloud services for its vSphere and vCloud offerings, but that strategy has let competitors like Microsoft, with their Azure services, and Amazon, with its AWS cloud services, to gain a clear advantage in the cloud services market. Both Amazon and Microsoft were able to take advantage of their existing global infrastructure to directly provide cloud services to customers. VMware worked with partners and didn't possess this type of infrastructure themselves. VMware's recent announcements have shown that it intends to expand its cloud presence with a new hybrid cloud offerings and enhanced network virtualization.
VMware NSX: a platform for Network Virtualization
VMware NSX will be the world’s leading network and security virtualization platform providing a full-service, programmatic, and mobile virtual network for virtual machines, deployed on top of any general purpose IP network hardware. The VMware NSX platform brings together the best of Nicira NVP and VMware vCloud Network and Security (vCNS) into one unified platform. VMware NSX exposes a complete suite of simplified logical networking elements and services including logical switches, routers, firewalls, load balancers, VPN, QoS, monitoring, and security; arranged in any topology with isolation and multi-tenancy through programmable APIs – deployed on top of any physical IP network fabric, resident with any compute hypervisor, connecting to any external network, and consumed by any cloud management platform (e.g. vCloud, OpenStack, CloudStack).
The VMware NSX platform is assembled with five basic components: Controller Cluster, Hypervisor vSwitches, Gateways, Ecosystem partners, and NSX Manager.