Ancelotti's system worked really well until a point. But last season, it failed. Maybe because of the injury problems mostly. Because they had these issues in defense quite often.
He is still the manager with the highest number of trophies in Real Madrid.

I respect him a lot for that. Xabi Alonso is an old Real Madrid player at the same time. I'm excited to see his performance as well...
For now, I’m leaning more towards Ancelotti, even though his last season wasn’t very successful. I still think he’s a great coach and could achieve better results in the new season. But clubs like Real don’t forgive trophyless seasons.
As for Alonso, he could become a new young coaching talent if he manages to cope with the pressure that will be put on him, because people will expect trophies from him in his very first season. No one will give him time to adapt and rebuild the team.