For all the talk about how server virtualization's day has finally come for the x64 server platform - and how the economic meltdown has finally given customers the impetus to go virtual with their iron - VMware couldn't grow both sales and profits in the final quarter of 2009. It is probably safe to blame Microsoft's Hyper-V R2 …
As fully paid up 3.5 Ent with SnS I wanted to upgrade to ESX 4.0 Ent+. When asked to jusitfy cost against benefits blah blah - gave up (even with the promotion).
With MS on-site and our EA - VMware, help me out here. I love ESX but senior management look at one thing.
P.S : Over my dead body does ESX get decomissioned. Problem is I'm not immortal ;)
Too late now, I know, but...
Apparently VMware had an end of year sale going on until Dec 15, 2009.
They offered to upgrade our 3.5 Ent to 4.0 Ent+ for an absolute pittance. We jumped on that about as fast as I could convince the beancounters.
It helped that other organisational "silos" were rolling out all kinds of bloated new enterprise systems and we were able to demonstrate in testing that by going to 4.0 we could keep a steady CPU count, whereas with 3.5 we would have needed to add more iron. The performance gains for 4.0 were surprisingly really that big, in our own benchmarks.
Maybe you should also go see if any departments are lusting after some new ERP or eDRMS systems? :)
Even though VMware Professional Services grew 50%, it is clear that VMware does not want to grow their Services too big. This may show the shareholders that having a services revenue that is too big, may show that the software is flawed. With Virtualisation that is not the case, it needs more services introducing a different approach to IT services. In a lot of cases it is a culture change withing the organisations.
VMware is cost wise still the better choice, even though Enterprise+ licenses are expensive. When you follow VMware best practices and include all operational costs involved you will find that. Having said that, please have a good look at the features required to run your IT on Virtualisation. Maybe you don't need Enterprise + licenses and save even more money.
VMware still has a strong software suite, despite what the competition is trying to sell. Only VMware has to be careful of the 'good-enough' effect, that may kill their business in a snap. Look at the laptop market and what happened when Netbooks got introduced.
What's the story?
So in bad economy, VMware still reports growth. Just not enough growth to keep those idiots in Wall Street happy - who caused the problem in first place... Is the beginning of collective memory loss?