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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 your response to competitors saying VMware is just doing this to increase their bottom line?

I’ll answer that two-folds. Comparing pricing across ISVs is extremely difficult in terms of the ways products are packaged and bundled. Then you add complexity about the actual metric that they’re licensed on. First, I would say we’re trying to align to what we see is becoming an industry standard. So take a look at Microsoft. They already moved completely over to a per-core model. So we feel that by going to a processor with this core tiering, if you will, will help customers better compare our pricing structure relative to what’s out there in the industry.

The second is about moving forward, to make sure that VMware has a competitively comparable pricing structure so I don’t find myself in a scenario where I’m overprice in one scenario and way underpriced in another. So it’s that balanced. I think we’ve got to the point in hardware advancements and so forth where one-size fits all just doesn’t work any more. Again, the likes of Microsoft, Oracle, Red Hat, have already made those moves. I wouldn’t say it’s a “me too”. I think there’s good reason for us to do this. I have to keep ahead of pricing to align the value that we’re providing to the price point that we’re charging.

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