The Virtualization Room

Jul 7 2009   7:59PM GMT

Why does VMware care about Virtual Iron customers?

Colin Steele Colin Steele Profile: Colin Steele


Good news, Virtual Iron customers: In the words of Tom Petty, you don’t have to live like a refugee.

VMware is reaching out to Virtual Iron users, following Oracle’s decision to kill off the Virtual Iron product line last week. (Oracle acquired Virtual Iron in May.) As my colleague Alex Barrett reports today, VMware is offering Virtual Iron customers 40% off the list price of vSphere and vCenter.

The offer is an apparent attempt to keep Virtual Iron’s customers from moving to Oracle VM (which is what Oracle wants them to do). But that raises the question: Why does VMware care?

There are only about 2,000 Virtual Iron customers out there, and Virtual Iron had less than a 2% share of the market. On top of that, Oracle’s market share is even smaller, by most estimates.

Even if VMware were to successfully woo all 2,000 Virtual Iron customers, their effect on VMware’s market share and profits (especially with this discount) would be minimal. And on the flip side, even if they were all to move to Oracle, Oracle would still be nothing more than a bit player in the market.

VMware clearly sees Larry Ellison’s deep pockets as a threat. It’s good to recognize that, but letting it become a distraction — like this Virtual Iron discount program — could lead to problems down the line.

And since I got the song in your head, here’s Tom Petty and the Heartbreakers with “Refugee”:

2  Comments on this Post

There was an error processing your information. Please try again later.
Thanks. We'll let you know when a new response is added.
Send me notifications when other members comment.
  • Gulliver1
    Thanks for the insightful article and for the great song, it's been a while since I last heard it.
    0 pointsBadges:
  • Colin Steele
    Thanks, Gulliver. That's one of my favorite Tom Petty songs.
    4,215 pointsBadges:

Forgot Password

No problem! Submit your e-mail address below. We'll send you an e-mail containing your password.

Your password has been sent to:

Share this item with your network: