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VMware is the de facto private cloud incumbent and switching costs are incredibly high, and AWS is the de facto enterprise public cloud incumbent with perhaps even higher switching costs and the same kind of inertia as legacy on-premises systems. What this signals to me is that the "hybrid cloud" management voodoo software that's been peddled for years by various vendors isn't sufficient enough to keep VMware viable enough on its own, and VMware wants to partner with the incumbent enterprise public cloud for continued relevance rather than to risk partnering with anyone that's competing against AWS.

GCE has so little of the enterprise compliance and security solutions engineering bureaucracy that enterprises love to spend tens of millions of dollars and years doing POCs with it's just not viable at this time.




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