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Forget Azure Appliance. Think Azure Services From Dell And HP: Page 2 of 2

Ottaway was quick to point out that SMBs could use Microsoft products such as Windows Server 2008, Hyper-V and System Center Virtual Machine Manager Self Service Portal 2.0 to build an on-premises cloud at a scale a cost that is more in-line with SMB requirements. Other options of course include RedHat's Cloud Foundations to build a private cloud on RedHat's Enterprise Virtualization or VMware.

Dell's Kris Fitzgerald CTO of Dell Services, said the company is planning on offering a suite of services that range from providing on-premises private cloud, migration and transfer services of workloads to Dells off-premises private cloud,  a hybrid model where processing and storage was split between on-premises and off-premises cloud services, and using Dells own Azure cloud service to host your applications.

There are options for building a private, on-premises cloud, but the Azure appliance isn't one of them for a large majority of data centers. Rather, the announcement is more about Dell and HP's plans to offer a cloud services based on Azure.