vmwarecloudVMware (NYSE: VMW) continues to flex its muscle in the virtualization and private cloud markets. Want proof? During a recent discussion with The VAR Guy, a Global 2000 software industry executive said his company plans to focus a core product line on public clouds because it's too darn difficult to compete against VMware in the private cloud market. But don't forget: A VMware public cloud push is under way, too. Here's the chatter.

The conversation occurred about a week ago. The executive, who competes with VMware on some fronts, said the virtualization company had "gained critical mass" in the private cloud market. "Why would I try to displace VMware on premise in private clouds, especially when the public cloud seems to be more open to multiple software vendors?"

Hmmm... Interesting stuff. Let's be clear here: VMware has strong competition in the private cloud market, but the company's momentum remains in place. For its Q3 2012, VMware said revenues rose 20 percent to $1.13 billion. CEO Pat Gelsinger credited VMware's software-defined data center strategy (which virtualizes network, compute and storage resources) for the momentum.

Toni Adams, VP of global partner and alliance marketing, offered deeper details about the software-defined data center strategy in this FastChat Video:


[youtube width="300" height="256"]http://www.youtube.com/watch?v=9Y1125T7rP0[/youtube]

The bigger question: Can VMware extend its private cloud success out to the public cloud?

Hmmm... Anecdotal evidence suggests VMware and the vCloud Suite are catching on with cloud services providers. As of September 2012, VMware had 8,500 vCloud Service Providers on board. One prime example:  iland, a global cloud infrastructure provider and the VMware Service Provider Partner of the Year Global 2012, in December 2012 said it is leveraging "VMware network virtualization to reduce operational costs and increase service velocity."

No doubt, VMware will face plenty of competition in the public and private cloud markets. But some rivals, including a key Global 2000 software executive, seem to be retreating from the on-premises war and hoping to reload for the public cloud battle.