As Microsoft gains, VMware insists that it maintains the upper hand
Each year at VMworld, the questions about Microsoft become a little more insistent. With the maker of Windows Server providing virtualization that’s cheaper and good enough for many IT shops, how long can VMware remain king of the hill?
The questions at the latest VMworld conference that began today have been as frequent as ever. But like always, VMware has answers. After VMware this morning announced it’s dumping a controversial pricing scheme, reporters asked if the move was in response to advances that bring Microsoft’s Hyper-V virtualization platform and the System Center management tools closer to parity with VMware.
“Everyone in this room knows you cannot compete against Microsoft on price,” VMware Chief Marketing Officer Rick Jackson said in a press conference. “They are the world’s most profitable for-free company ever. You compete against Microsoft on value.” Simply put, VMware killed its new pricing model (which charged customers for use of virtual memory rather than physical resources) because customers hated it.
