So the "IT Director of a global managed service provider"
is upset that he didn't as good of a discount after signing an ELA?
He needs to direct his ire at whoever was doing the negotiating for his company. WTF?
Also, let's see him supply the justification to switch out of VMware after two years and all this investment.
At the end of the article the Author writes.
"One aspect of VMware's strategy that I've always appreciated is what appears to be a very real concern for the needs of customers"
The un-named IT Director in the SearchVirtualization article didn't do his job,or he would of revealed himself.
No position here. Just watching this roller coaster. As a long time VMWare customer, I will say there is some substance to this article. VMW's sales force has gotten so used to writing up orders, I'm not sure they really know what "sales" really is. As a customer, it's frustrating- they're arrogant. And this stock run isn't helping it. I'm afraid this sentiment they're building will catch up with them over time, when they actually do have to "sell" their product.
I have seen this before with BMC Software. Same exact thing. BMC was very expensive, VMware really is not. If you just do a 10 to 1 consolidation ratio to a 2 processor machine, something which is very easy to accomplish, you are paying around $5K for VMware. That is $250 per node. In a physical world, paying $250 per server is nothing. People have to wrap their minds around that fact. But, the sales force does need to realize who the customer is. No matter how great the product. I agree.
Gosh i'd say this is a great endorsement of the Company and its products - they've signed up for more.
You think they should give them away free?
Look at the money the customer is saving.
Thanks - glad i bought VMW.
Thanks for the article, it summarizes what I've thought all along. And what will take this stock back to the IPO price level. Comp., good product but margin pressure. See you in the 50's by April of '08.
it also shows how much VMware holds the virtualization industry at its mercy. they have a solid grasp on their pricing because everyone needs their product, and they charge a pretty penny too. true, this may change in the future, and there is pressure, but for the next couple years at least, it is smooth sailing for VMW.