At the close of Day 3 of VMworld 2013, theCUBE hosts Dave Vellante and Stu Miniman met to wrap-up the day and discuss their impressions of VMworld, VMware, and the future of the industry.

According to Vellante, VMware’s vSphere is its core and is very strong. The company is continuously launching new capabilities from that core, producing new revenue opportunities, and those opportunities are increasingly becoming centered around the concept of a software-defined data center. Outside that core, however, they have more work to do. VMware is an ambitious company, and what they are trying to do with networking is not trivial.

Miniman chimed in and said that Cisco has two-thirds of the market in networking, a dominant position. They have a lot of revenue at their disposal. He gave the example of VMware’s impact on server hardware purchasing. People are still buying hardware, but virtualization has helped make use of that hardware more efficient. VMware may find a space within the networking market that does not disrupt Cisco’s, allowing the two to coexist.

Despite that possibility, explained Miniman, there is still risk for Cisco regarding NSX, VMware’s network virtualization platform. For VMware, it is a once in a 15-year opportunity to take a chunk out of Cisco’s stronghold on networking, so there is still potential for competition between the two.

Vellante then praised VMware’s success, stating that the company is growing at 15 to 19 percent, faster than the overall marketplace. They have the “wind at their backs right now,” he said. Miniman described it as “a great time in the industry to watch all of these dynamics. It’s exciting times.”

Vellante closed by saying that it is imperative for VMware to maintain strength at their core, keep investing, innovating, and giving people a reason to go out and buy their more expensive product. Customers want to see the concept of a software-defined data center executed. They want to see proof of its viability, and VMware will need to demonstrate that.

Watch the full wrap-up video below: