I see pretty significant benefits in these areas, too:
Cost. When built right, a virtualized environment can be expanded with more granularity than their physical counterparts.
Flexibility. It's much easier to adjust resource allocations in a virtual environment.
New service provisioning. No longer do organizations have to wait for new servers resources to arrive before deploying a new service. Now, they can deploy in their virtual environment today.
I think these expected benefits are one of the reasons that VMware's constantly changing licensing policies frustrate me so much. Organizations these days want stability and reasonable expectations in their IT costs. When vendors take it upon themselves to simply shift the paradigm, that introduces uncertainty and confusion into a core service.
Hi Scott, From past experiences, I think that vendors start with a good idea or product and the initial focus is on the functionality or the added value for customers but then when they lead the market, their focus shifts to on how to make more money out of the product!! Thanks Scott for your interesting points.
I agree with your points about market leaders needing to find ways to extract more money from their existing customer base, particularly in a market in which that vendor's share is staying level or declining. I believe that VMware will retain their market lead for quite some time, but it will be eroded by Microsoft with Hyper-V 3.0 when it comes out, especially as VMware continues to increase prices and change recommendations to meet revenue needs.
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