Ok, I am a technician. Not an engineer, not a software developer, and certainly not a business man.
I did just conplete the introductory course to VMware. I found it very intersting. With the latest VMware a company can build a virtual network that spans in-house data centers and the cloud. The power and cost savings as well as resiliency of this type of data center architecture is so far ahead of what we have had that it is a Macro Economic step change.
Quick overview of virtualized server centers as VMware builds them. VMware uses their EXSi software as a hypervisor. It runs directly on the bare metal machine. The machine is called a host. The hypervisor hosts several Vitual Servers. I think it is now up to 4096 per host, but this would be significantly more than the resources of the machine could handle.
These hosts might have storage in them, and some may have none and use a Storage Area Network (SAN). VMware can take the storage on the hosts and create a vSAN. This mskes things nice a VMware csn then move servers and shut down host as it needs. It can also add and remove storage from servers as the need arises.
Finally, it has been discovered that when you have thousands of servers in a data center and they are all virtualized there is a great deal of traffic between them. This traffic between virtual servers, often sitting on the same piece of hardware, is called east-west traffic. The traffic leaving and entering the hosts is called north-south traffic. VMware has a software called NSX that builds a virtual network for the east-west traffic. By doing this they can run vitual lans at the data layer, ethernet, rather than at the IP layer. What is more these connections and networks can be brought up and taken down very quickly.
However, the north-south traffic is still being built using integrated routers. Arista is addressing this part of the data center.
When you look at what virtualization is doing to the data center and how Nvidia is compressing the need for server space, you can begin to understand how companies like Talend can use this falling, (and no longer capitalized) expense to do amazing things.
What is happening in the data center is really quite amazing. Pure Storage is selling the storage, Arista is selling the north-south highways, Talend is selling the tools, Amazon is renting the compute.
There are two other essential things needed in a data center, we are not invested in them.
One is power, none of the neato wowie blinky blinky stuff works without steady clean power. This means, generators, switch gear and battery plants.
Two is air conditioning. Without AC most of the equupment overheats and dies. Cooling server centers is as critical as powering them.
Qazulight (The VMware course is free, poorly organized, and difficult.)