The foundation for VCE is a shared vision for the future of private clouds -- virtual IT infrastructures securely controlled and operated by one organization that can be managed internally or by a third party and can exist on or off premises, or both. The vision includes Vblock Infrastructure Packages that work to integrate virtualization, networking, computing, storage , security and management technologies backed by end-to-end vendor accountability.

Cisco and EMC also introduced Acadia, a joint venture focused on accelerating build-outs of private cloud infrastructures by service providers and large enterprise customers. Also capitalized by VMware and Intel , the companies said Acadia's model for delivering Vblock solutions will offer choice, flexibility and cost advantages. But will the new deal hurt the companies involved if it fails?

What's Different About VCE?

VCE exists to drive sales of the members' various technologies and to make real their vision of private cloud computing, but the most significant part of the announcement is the coalition itself, according to Charles King, principal analyst at Pund-IT. While the IT industry as a whole loves the notion of collaboration, he said, the shape of most such relationships is conventional in the extreme, focusing on simple product interoperability and customer issues.

"By comparison, the VCE coalition allows Cisco, EMC and VMware to present clients a single face and common responsibility while preserving the partners' independence," King said. "That is, while the three will contribute significantly to VCE, they will also continue to work closely with various partners and with clients who prefer other vendors' products."

King said organizations can benefit from VCE's Vblock architecture and solutions through Intel-based, industry-standard computing and the partners' well-established technology solutions, along with significantly reduced risk and cost via the coalition's rigorous pre-integration and validation process. In addition, King said, VCE's unified sales, service and support strategy offers clients the same benefits as a single vendor's "one throat to choke" services and support.

All Stand to Profit

As King sees it, VCE will run into competition from established system vendors and their allies. But if VCE even nominally succeeds as designed, Cisco, EMC and VMware all stand to profit, as will Intel, both from the coalition's leverage of its Xeon server technologies and VCE's focus on industry-standard business computing.

At the same time, he said, the coalition is not absolutely critical to any of the participants' long-term success. Whether enterprises significantly move toward VCE-enabled private cloud computing, he added, Cisco, EMC and VMware will remain leaders in their respective markets and areas of expertise.

"In essence, by leveraging their unique talents and technologies along with a common vision, the coalition should allow Cisco, EMC and VMware to explore and enable the future of enterprise computing while remaining firmly rooted in the here and now," King said. "That qualifies as a win-win for VCE's partners and cloud-bound enterprise customers."