Do you think VMware ESX will lower its price after Hyper-V R2 goes GA?

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After Hyper-V R2 goes GA, do you think VMware ESX will lower its price? Why or why not? Hannah Drake and Bridget Botelho discussed this, among other topics (including what's ahead at VMWorld) with John Gilmartin of VMware -- you can listen to the podcast here.
ASKED: August 24, 2009  6:50 PM
UPDATED: September 16, 2009  6:21 PM

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Well, considering that ESXi is completely free to use in a standalone model, and that VMware has stated that ESX is not the way of the future, then the answer is no, I don’t think they <b>can</b> lower the price. It would be nice if they paid us to use it, but I doubt that’s going to happen.

Smarmyness aside – do I think that VMware will lower the <b>licensing</b> costs to manage ESXi and the various other components? No, I don’t. In fact, with the release of vSphere earlier this year, they’ve gone and raised prices for comparable functionality if I’m not mistaken.

I don’t agree with it, in light of rising competition, but at this stage of the game, I think they can afford to. They have products and features that are mature and proven, whereas Microsoft, et. al. are in pure catch-up mode, and have to keep their pricing low in order to attract those organizations who focus solely on the bottom-line and are OK with vendor lock-in in Microsoft’s specific case.

In a year or two (perhaps sooner), we may see VMware start giving away licenses for certain products (maybe VMotion or DRS, both of which require use of a vCenter Server, which they can still charge for and make a tidy profit on) or build the functionality into a base product and hide the cost. But I’m speculating, and wishing too (did you hear that, VMware???).

I dont think they will lower the price. What they will do is try to bundle up products and offer better discounts.

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