SolarWinds recently published a blog claiming VMware ceded the SMB market to Microsoft Hyper-V. Unfortunately the SolarWinds blog is not accepting comments, so we are posting our response here. The blog misquotes Gartner, makes incorrect statements about VMware products and packaging and makes unsupported claims on how VMware will play in the SMB market.
Firstly, Gartner’s estimates of hypervisor SMB market share are far different from those made in the blog. The author should back up Gartner’s statements with citations.
Claims made in the blog about VMware are baseless as well.
Claim 1: VMware continues to add enterprise-focused capability to their product, most of which will not be used by SMBs.
Fact: VMware offers Essentials and Essential Plus editions that are designed specifically for small environments, with features that smaller businesses want. vSphere also comes in 6 CPU-pack acceleration kits, targeted at, and priced for SMBs with a range of features, from the basic server consolidation to policy-based datacenter management. VMware has also launched new products and services specifically targeted at SMBs. Examples are vSphere Storage Appliance, and the cloud-based Go service.
Claim 2:, SMBs end up paying more for functionality that they won’t use.
Fact: The Essentials edition is priced at $83/processor (lic only) and the Essential Plus edition is priced at $749/processor (lic only).
SMB do not need to pay for advanced functionality unless they are interested in high end capabilities such as Storage and Network I/O controls.
Claim 3: Unlike Microsoft, VMware doesn’t really have a way to profit from customers using a free version of their product, giving us reason to expect that they won’t be a price competitor with Microsoft in the short term.
Fact: VMware not only has a strong adoption in SMBs, but also the preferred vendor status. VMware’s > 70% market share comment is true and includes SMBs as well. A broad range of projections on VMware’s market share have been made in the past. However, VMware, continued to be the preferred choice of customers of all sizes by focusing on innovation and keeping the technology lead. This fact is supported by the more than 350,000 customers across SMBs and enterprise that are VMware users. VMware also offers a free Hypervisor for users with simple requirements who want to try out virtualization. It can be downloaded with VMware Go, the web-based service that will guide users through the installation and configuration process.
Please refer to VMware products, pricing and packaging at www.vmware.com/products/vsphere/pricing.html