VMware Pricing Controversy: Exclusive User Research
Check out what IT pros had to say about VMware's recent licensing policy change in this InformationWeek.com survey.
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When VMware announced version 5 of its vSphere product on July 12, the technical advances that came with the announcement were universally praised, but a new licensing policy was roundly denounced by users and pundits. To determine user plans for vSphere 5 in the wake of the controversy, InformationWeek asked 410 IT pros about their plans for virtualization in general and VMware in particular. We also asked whether and how the new licensing policy would affect adoption plans. (See "VMware Pricing Controversy: Users Say Microsoft Door Open" for more information.)
The survey reveals that VMware customers intend to continue their efforts to "scale up" by purchasing more capable equipment. But while the move from the predominant two socket systems largely in used today to four socket systems is fairly gradual, the adoption of larger RAM configurations is much more aggressive. The result: While most users may not see increased licensing costs now, it's highly likely that those costs will go up substantially as IT teams adopt subsequent generations of server hardware. As a result of concerns largely arising from pricing and licensing policies, our survey shows that buyers are slowing their adoption plans and considering VMware alternatives. Now that the company charges based on configured RAM use, VMware customers must also re-examine well-established techniques such as over-provisioning, a technique used by many to assure smooth operation of virtual machines. We expect to see competitors ramping up their marketing machines with messages of simpler licensing and better economics. Dig in for a complete look at the InformationWeek.com research numbers.
VMware rules the market. It's likely that since our survey specifically asked about VMware products, we attracted more VMware users. Most estimates put VMware's enterprise market share at about 80%. IDC's numbers put the market share closer to 50%, but its numbers skew low because some competing products are free and probably not in use.
The server virtualization market is a three horse race with VMware well out front.
By far, the most popular server configuration in use today is the dual socket system. Use of quad socket systems is projected to grow by 75% over two years, while blades will grow by close to 50%.
Server memory configurations will shoot up over the next two years. The fraction of servers with 128 to 256 GB of memory will double and those with more than 256 GB will triple. The effect: Many of those who aren't bumping up against VMware's vRAM licensing limits yet will do so in two years.
Server virtualization is well entrenched among respondents. About half the respondents have 50% or less of their workloads virtualized and half have more than 50% virtualized. Most organizations have a tough time getting past 80% virtualized.
In two years, almost half of respondents intend to have more than 75% of workloads virtualized. VMware and others should see substantial growth just from the increased adoption of virtualization during the next two years.
The VMware vSphere 5 announcement has been closely watched. Two thirds of respondents are somewhat or very familiar with it.
Among respondents familiar with the overall product announcement, two-thirds are familiar with licensing changes. This speaks to the strong reactions around the announcement, despite the fact that VMware soft-peddled the licensing in its product rollout.
Only 7% of those respondents who know about the new licensing model say they like it, while six in ten say it's a deterrent. This data was collected before VMware announced changes to the original vRAM licensing policy.
IT pros say they love the new VMware features, but they hate the new licensing model.
Half of those who would have adopted VMware say they are now are looking to scale back efforts. Only 4% say they are ready to jump right in.
Half of those who would have adopted VMware say they are now are looking to scale back efforts. Only 4% say they are ready to jump right in.
When VMware announced version 5 of its vSphere product on July 12, the technical advances that came with the announcement were universally praised, but a new licensing policy was roundly denounced by users and pundits. To determine user plans for vSphere 5 in the wake of the controversy, InformationWeek asked 410 IT pros about their plans for virtualization in general and VMware in particular. We also asked whether and how the new licensing policy would affect adoption plans. (See "VMware Pricing Controversy: Users Say Microsoft Door Open" for more information.)
The survey reveals that VMware customers intend to continue their efforts to "scale up" by purchasing more capable equipment. But while the move from the predominant two socket systems largely in used today to four socket systems is fairly gradual, the adoption of larger RAM configurations is much more aggressive. The result: While most users may not see increased licensing costs now, it's highly likely that those costs will go up substantially as IT teams adopt subsequent generations of server hardware. As a result of concerns largely arising from pricing and licensing policies, our survey shows that buyers are slowing their adoption plans and considering VMware alternatives. Now that the company charges based on configured RAM use, VMware customers must also re-examine well-established techniques such as over-provisioning, a technique used by many to assure smooth operation of virtual machines. We expect to see competitors ramping up their marketing machines with messages of simpler licensing and better economics. Dig in for a complete look at the InformationWeek.com research numbers.
VMware rules the market. It's likely that since our survey specifically asked about VMware products, we attracted more VMware users. Most estimates put VMware's enterprise market share at about 80%. IDC's numbers put the market share closer to 50%, but its numbers skew low because some competing products are free and probably not in use.
RECOMMENDED READING:
VMware Pricing Controversy: Users Say Microsoft Door Open
Users Outraged Over New VMware Pricing Policy
VMware Pricing Outrage: A Closer Look
VMware Blinks On RAM-Based Licensing Costs
VMWare, RIM Risk Blowing Leads?
Licensing Headaches: Is VMware Or Microsoft Worse?
VMware Strengthens Cloud Support With vSphere 5
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