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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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Everything You Need To Know About VMware’s Licensing And Pricing Change

VMware’s leader for licensing and pricing says the virtualization star’s recent price change to its CPU software licensing for customers who have more than 32 cores will have “zero impact” on existing customers and paves the way for pricing simplicity and flexibility for VMware channel partners and customers.

“We really architected this to have zero impact on our existing install base, that’s why we set the threshold at 32 cores,” said Ryan Knauss, vice president of licensing and pricing, who’s helped lead VMware’s licensing strategy for nearly 13 years. “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. I think we’ve accomplished that.”

Effective April 2, 2020, VMware is changing its per-CPU pricing model in which any software offering that VMware licenses on a pre-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.

In an interview with CRN, Knauss explains the reasoning for the licensing change, the percentage of customers that will be impacted, his message to competitors and if VMware expects to make any more software licensing changes in 2020.

“Increasingly, subscription, non-perpetual licensing – being it on-premise or some type of hybrid offer that’s in the cloud and on-premise but still licensed on a non-perpetual basis -- I think will become a bigger part of our business,” Knauss said.

 
 
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