VMware Announces vCloud Hybrid Service™ – Reaction to the news

Yesterday VMware announced (click here to see the recording) their new vCloud Hybrid Service, for those living under a rock for the better part of the last year, its VMware’s IaaS offering; their answer to AWS, Azure, and the glut of smaller but still very good vendors such as GoGrid, Softlayer and ProfitBricks.  While it is an IaaS offering, I think it will be positioned as an “enterprise” cloud versus a consumer cloud meaning you should expect better SLA’s and equipment with a focus on allowing current VMware customers an easy path to expanding their infrastructure (while making VMware some recurring month to month revenue – not a bad thing at all by the way).  This announcement was really no surprise, we all knew at a high level what was coming (I uploaded a video of the beta version last October to YouTube) but lets review what was released.
Pricing on the service can be found here; during the announcement they said it would be a very simple and straight forward pricing model, however at first glance is utterly confusing – am I paying per hour on compute, storage bandwidth and IP’s?  It says on the page that those items are inclusive so is the chart listing cost over a certain amount?  A pricing calculator like Amazon offers would have been a handy add-on to their pricing page.  If the pricing works out to be similar to the vCloud Service Evaluation Beta pricing would start at roughly $30/month for 1 CPU, 512MB RAM, 50GB of storage based on 730 hours of use.
My brain not working (or the pricing page actually being confusing) aside, I have a love/hate relationship with this announcement.  For an on-premise solution, there isn’t a better hypervisor/virtualization platform than VMware.  They make great software for managing all these resources but can they really