Enomaly buy to fuel new Virtustream exchange

Virtustream is planning an exchange where companies can buy and sell excess capacity from their private clouds

Virtustream's acquisition of Enomaly could help enterprises turn a drawback of private clouds--excess capacity--into a profit center.

On Thursday, Virtustream, an infrastructure-as-a-service provider that also offers software for businesses to build private clouds, announced plans to acquire Enomaly. Enomaly offers software to providers building public clouds but it is also known for SpotCloud, its marketplace where anyone can shop for on-demand compute services from providers that are looking to sell unused capacity, often at a discount.

The companies did not disclose terms of the deal, which they expect to close in the first quarter.

If Virtustream's plans pan out, it will use technology from SpotCloud to build an exchange where enterprises will be able to buy and sell excess cloud capacity from their private clouds. The exchange would help businesses find users for excess servers that they must deploy to accommodate for spikes in traffic.

"What we're hearing [from customers] is an outreach for products that allow them to maximize the use of their own physical assets on premise and also enjoy the benefits of the economics of multitenancy, because no matter how scalable you are, if you're not using capacity you're still paying for it," Kevin Reid, CEO of Virtustream, said.

The exchange would build on Virtustream's concept of an infrastructure unit. An infrastructure unit, as Virtustream defines it, is a way of measuring cloud usage and combines CPU, memory, bandwidth and IOPS. Virtustream prices its IaaS service based on infrastructure units, which it says is more efficient for users.

"That does what the kilowatt did for electricity," Reid said. "It's a unique way of managing and provisioning and billing for workloads based on this normalized unit of measure."

This common unit of measure is key for creating an exchange so that businesses contributing their excess capacity sell that capacity on the same basis. The infrastructure unit will be like a currency for buying and selling in the exchange, he said.

Virtustream has already begun talking to partners about participating in the exchange so that it won't be limited just to businesses that have built their private clouds using Virtustream's cloud software, he said.

Reid did not have a time frame for when this exchange might become available to businesses.

The exchange won't replace SpotCloud, which Virtustream plans to do some work on before launching commercially. For instance, it will incorporate its infrastructure unit as a measurement unit in SpotCloud. SpotCloud is currently in beta release.

Virtustream hasn't yet decided exactly how it will handle Enomaly's cloud software. It could combine the best of its own software with Enomaly's for an integrated product.

In the short term, Reuven Cohen, Enomaly's founder and well-known voice in the cloud startup community, will help with the integration of the companies and from there will determine his position at Virtustream, he said.

Nancy Gohring covers mobile phones and cloud computing for The IDG News Service. Follow Nancy on Twitter at @idgnancy. Nancy's e-mail address is Nancy_Gohring@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags business issuesVirtustreamEnomalycloud computinginternetInfrastructure servicesMergers and acquisitions

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Nancy Gohring

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?