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Scale Computing CEO Jeff Ready Slams VMware Licensing Increase

‘I’d imagine that there’s a lot of customers who are scratching their head over what this means for them and perhaps opens the doors for us and our partners when those customers come up for renewal,’ says Scale Computing CEO Jeff Ready in an interview with CRN.

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Jeff Ready: VMware’s Licensing Change ‘Strengthens Our Story’

Scale Computing CEO Jeff Ready says VMware’s plan to increase the cost of its CPU software licensing for customers who have more than 32 cores will open new doors for his company and help further differentiate Scale Computing at the edge.

“I’ve seen a bunch of customers that want to move over to those higher-core-count types of CPUs. Now all of a sudden, ‘Oh, one VMware license doesn’t cover you anymore. You’re going to need two, or four, or whatever amount of licensing it works out to be.’ While that hurts everybody, it’s evidence that maybe VMware doesn’t understand the edge computing in the midmarket where we play,” said Ready in an interview with CRN. “I give the marketing department props for coming up with some spin, but at the end of the day it’s a price increase.”

Effective April 2, 2020, VMware is changing its per-CPU pricing model in which any software offering that VMware licenses on a per-CPU basis, VMware will require one license for up to 32 physical cores. If a CPU has more than 32 cores, additional CPU licenses will need to be purchased. The Palo Alto, Calif.-based company said the change “moves VMware closer to the current software-industry-standard model of core-based pricing. This approach will make it easier for customers to compare software licensing and pricing between VMware [using per-CPU with up to 32 cores] and other vendors [using per-core pricing]. It also helps us keep our pricing simple and relevant to where the hardware market is going.”

At the broadest level, Ready says the licensing change “is a punch to the nose to AMD.”

Here’s what Scale Computing’s CEO has to say about VMware’s licensing increase and its effect on the market.

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