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VMware Licensing VP: CPU Pricing Change Has ‘Zero Impact’

‘AMD has a few levels above 32 cores. For those that are, we tried to be as flexible as possible in giving customers a fair amount of time to grandfather them in with the goal being zero impact to our existing customers,’ says VMware’s Ryan Knauss, vice president of licensing and pricing.

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Why did VMware make this licensing change?

If we look at some of the recent moves from Microsoft, Oracle and others, it seems the core is becoming the primary industry metric for infrastructure software. We’ve been looking at our licensing model on an ongoing basis since I’ve been here almost 13 years. This is something that we’ve contemplated back to 2007 as whether or not a processor remodel made sense for us or if we wanted to go down the core path. We stayed on the processor path for good reason, we wanted to keep things simple and really just move in this direction is a play around simplicity. Some of the challenges you can image with a generic all-you-can-eat model around processor is that it doesn’t give us the ability to really customize pricing for specific use cases. So folks that have lower core density are paying the same price as folks who are now deploying on really rich, robust products. From that angle, having this one-size-fits all pricing can lead to scenarios where we are way over-price in one case, and way underprice in another case.

 
 
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