Deploying VMware to enable virtualization has allowed small and medium sized businesses to create additional virtual machines at will, often placing them on the same physical server. This has greatly decreased computing costs, since densities of up to 100 virtual machines on a single physical server are made possible by the use of VMware.
Companies that have been relying on this computing structure, however, would do well to discuss new developments in VMware's licensing plans with the IT consultants helping them to organize information services for their networks. This is because the CEO of VMware, Paul Maritz, has recently indicated the need for a new pricing model for virtualization services. Speaking at the VMworld Europe conference, Maritz commented, "We are going to have to move toward more of a consumption-based model. This is where we are going. We are trying to keep the licensing stable for as long as we can, but in 10 years from now, things will have changed quite radically."
Current Pricing vs. Projected Pricing
VMware is currently licensed on a per-CPU basis. This has been highly advantageous for companies running the software and explains why VMware commands such a huge share of the virtualization market. The projected "consumption-based" pricing model will charge customers according to usage rather than allowing them unlimited usage of VMware on a single licensed physical server.
These changes will not happen overnight, as seen from Maritz's mention of "10 years”, but with such large shifts in pricing being projected, organizations should consider working closely with their IT consulting firms to discuss the best way to move forward with virtualization.