VMware Pricing Always Comes Up But Does VMware Offer More Value Per Dollar?

VMware pricingWhat is the price at the “PUMP” for VMware?

Does VMware offer more value per dollar than its competitors?

Ten years ago if you were comparing Honda and Toyota to Chevy and Ford there would be no debate. Toyota and Honda would win hands down on quality, dependability and price. The same goes for VMware…

In today’s virtualization market, VMware definitely has the lead in virtualization innovation and is buying up every product on the market that even looks like it offers value or complements their current VMware product-line.

Aren’t Leaders the Best?

That said, does being the leader make you the Best? Let’s consider Apple is the leader and does make the best tablet, iPad – right? I would even say VMware is the “leader” and the “best” at server virtualization…

In my years of managing virtualization I have worked with sales teams to review and negotiate ELAs and SOWs. In the end it always comes down to “NEED” versus “GET” so don’t be taken advantage of by smooth talking sales-speak.

For example:

If you are paying 10M for a bunch of products that you are not ready for or don’t need, is it a better deal to “GET” unlimited licenses for vCenter and ESXi at 20% less (plus freebies)?

The alternative would be 7M (3M less) and only end up with what you “NEED”. Sure this could be cutting it close and will take proper forecasting and trending but it does save you 3M.

What About the VMware Freebies (Shiny New Objects)?

What about all the “Freebies” you are not getting if you decide to only rightsize your cost?

My question is this – are you really ready for the “Freebies” and will you need to purchase 10M in additional network, storage and server hardware to install them?

Not to mention properly setting up vCloud or View takes months to do it correctly (if you are a medium to large shop). How will that impact other more important projects and not become a shiny new object for you and your team to be distracted with?

Success Costs Time, Manpower (Womenpower) and Money!

You don’t just throw products like vCloud or View into your infrastructure without planning for success. Success costs time, manpower (womenpower) and money!

So lets reveiw the questions again:

  • Is 10M less than 7M?
  • Do you do proper forecasting and capacity trending?
  • Are you ready for vCloud or View (Freebies)?
  • How much more hardware, time and manpower will it cost (capex/opex)?
  • Can you just add “Shiny New Objects” when you are ready? Let’s say later you need more vCenter, ESXi and other licenses, or do decide to add View and you end up paying 3M more to get it. Is 10M for what you need – later – more expensive than 10M for what you may not have need – now?*
*VMware wants your business and they will renegotiate your ELA to get it.

Caveat (When in doubt, CYA):

On the flip side of my point, if you are a shop that sets up servers without planning or you are growing very fast and still don’t have mature capacity planning processes then by all-means get the unlimited ELA to save you time and frustration (When in doubt, CYA).

Here’s a good article I found that may help you decide: Microsoft, VMware offer deep discounts to gain virtualization market share (note the point in the article about VMware “Counter Punch” of giving away View and Management Tools – but remember – longer term you will have to pay for support on freebies.

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