VMWare – Perception is everything

Some time ago VMware changed their licensing model. Since VMWare isn’t one of the cheapest products out there, naturally there were a lot of folks in the communities that did some investigation into the new licensing model and prices.
And guess what happened, since there was an increase in the price a lot of folks were not so happy with it. Some are calling it “vTax”, others “the VMWare fiasco”. It doesn’t matter how you think of it, paying more for something is never a good thing… keeping the same price is acceptable, making it cheaper is even better.
A lot of bloggers went all-out on the new licensing model, one of those I like is from Aidan Finn: New VMware Licensing – Really? Are
they Mental or What?

There even is a thread on the VMware Community page about the new licensing… currently it is 76 pages (!!!) http://communities.vmware.com/thread/320877?start=0&tstart=0
Somehow I get the idea people are not too happy about paying more for something, wondering how that idea came into my head… curious…
Then, a few VMware community members (and VMware themselves as well) came along and explained some things. It seems that the increase will only affect a very low percentage of VMWare’s current customer base.

The competition
But VMWare is just one in a list of companies that develop hypervisors. What about Microsoft and Citrix… have they published something official about what they think of VMWare’s new licensing model?
Asking myself that question, I went to Bing and did a little searching… after not finding anything, I tried Google… same (lack of) result.

Now why is that?
An acquaintance of mine wrote to me some time ago a quote from Napoleon Bonaparte: ”Never interrupt an enemy when he is making a mistake…”
That has to be what Microsoft and Citrix are thinking! They don’t have to make fun about VMware, it seems VMware can do it just fine by themselves 🙂

Perception is everything
Dear VMware, I’m terribly sorry but that little detail, about the new licensing model only affecting few and specific situations, became public far too late! The damage is done!
The internet if now flooded with messages that VMware isn’t the cheapest solution out there (never mind the features they say competitors don’t offer) and that it’s now even more expensive.
With that in mind people will start (just for now?) looking for cheaper alternatives… and we can say hello to XenServer and Hyper-V 🙂

Next time you have the ingenious idea to raise your prices again, do some perception management first… you see now what happens if you don’t.
Give some examples of common cases where you explain the increase doesn’t affect them, and be very thorough in explaining the cases that ARE affected!

Now I would like to thank you since you’ve just made it even easier (like it was hard in the first place…) for my favorite product to convert your costomers.
And yes, that product is, and will remain for some time, Microsoft’s Hyper-V 🙂

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