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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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What’s the main goal here with this licensing change?

One of the overall goals from my organization is to make sure that our value really aligns to the price point that we’re charging. So customers need to get a richer RIO [return on investment]. We want customers to gain a richer RIO from our software. That one-size fits all is potentially limiting us in that regards. The thought was, ‘Hey, let’s go ahead and put a stake in the sand at 32 cores with the realization that’s we’re not really impacting any of our existing customers.’

Really there aren’t many processors with greater with 32 cores out there right now. By in large, everything is underneath that. Moving forward, it will give us the capability to give us more graduality in our pricing structure, thus giving customers more flexibility in making sure that I can have the right price point to the use case that our customer needs.

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