Is VMware the new Tall Poppy?
Here in Australia we have this phrase called "The Tall Poppy Syndrome". It is the "social phenomenon in which people of genuine merit are resented, attacked, cut down, or criticised because their talents or achievements elevate them above or distinguish them from their peers."
Seeing a bit of the fallout of the VMware licensing for v5 I wondered if VMware were the new Microsoft and we felt that they just needed to be brought down a peg or two.
My view is that part of this is due to a cultural change in how Virtualization is used within organizations today. Back in the day VMware was used to remove other costs within a project, it helped drive the ROI. Due to consolidation, which was it's big use case, every dollar you spent on VMware licenses was saving you many other dollars on physical hardware. We would drive every cent out of that physical hardware but the VMware portion looked like good value for money.
In today's world we have moved onto new models. We have seen "virtual first" become standard (certainly in my region) and VMware be a standard base cost for doing IT. At the same time we have seen the base hypervisor become a commodity item. Therefore the hypervisor has become like all the other elements of a solution, people need to squeeze every spare cent out of it, just like their storage, networking and compute hardware. VMware has entered main stream and is being treated accordingly by consumers.
Yet to stay leader of the pack and continue to deliver the eco system of products and tools around the base hypervisor VMware need to recoup their costs and they are going to price accordingly.
My take on the pricing backlash is this is more about VMware being treated just like all the other products and vendors in the stack. The glory days of consolidation savings are over, it's now the new norm. Time to refresh the value prop and get used to the backlash no matter what they do, just like Microsoft.
P.S. First post from my new iPad. Maybe this might get me posting more.