* Posts by dsellens

1 publicly visible post • joined 1 Feb 2016

VMware says vSphere in decline, new multi-cloud plan will ensure growth


Re: Price

Yes and no. The primary factor is not cost, it is the increasing size (number of cores) in new Processors. Companies are replacing 6-core procs with larger ones and consolidating the size of their datacenters instead of adding new machines. We recently replaced the 3 servers at one of our customer sites with 3 newer (still used) machines instead of adding a 4th machine to their cluster and saved them money. Note that they already owned the fourth machine that would have only required a memory upgrade. So yes, it was price as well as technology that drove this.

Second, the basic virtualization market is nearing saturation. There just isn't that much growth left. Many companies are 100% or nearly 100% virtualized and will not be buying any new licenses. And due to the factors above, may actually be cutting licenses in future years.

On the price side though, I am just about convinced that VMware is moving to abandon the small business customers that don't need their high-priced NSX, VSAN, and Hybrid products. Their continued push to the Linux based vCenter appliance will further drive customers to Hyper-V. There a huge number of small businesses out there that do not have any Linux expertise and are not about to hang the entire future of their business on something that they have no ability to support. They will go to Hyper-V long before they will even consider going to the vCenter appliance. And with Microsoft putting network and storage virtualization along with hybrid features right into Windows, VMware is looking at huge competition at the small end of the market where what they are selling for their high dollars are not needed. Windows 2012r2 was a big move, 2016 moves the bar forward again. Even small businesses with only 3 or 4 hosts are already buying Windows Datacenter to allow them unlimited Windows servers, so they are already paying for all the Hyper-V features. By this time next year, when VMware maintenance costs come due, there will be more and more people looking and Hyper-V.