VMware is going to go up against Amazon, Microsoft, Google and presumably Rackspace with its own public cloud Infrastructure-as-a-Service developed as Project Zephyr according to CRN, which thinks it could create some channel conflict for vCloud service providers that will have to compete with VMware.
The story is unconfirmed but the book quotes “sources with knowledge of the matter” saying that VMware has been quietly beta testing Zephyr for the last few months on Cisco USC servers and EMC Avamar storage at a big data center space in Nevada.
Apparently it’s afraid if it waits much longer it’ll be closed out. Market share will depend a lot on how aggressive its pricing is.