VMware react to new vSphere pricing model

VMware had introduced a new pricing model for vSphere 5 licencing. The revised model aimed to give customers the opportunity to move to a more cloud-like, “pay for consumption” approach to IT. The changes to the vSphere 5 pricing model lead to much debate. After reviewing the blogosphere, and after conversations with their partners and customers, VMware has changed their pricing strategy.

In an FAQ, VMware addresses the question of whether the vSphere 5 licensing changes will translate into higher costs for customer by explaining that “the licensing model has been designed to minimise the risk of potential impacts in existing environments while also providing room for growth.”

“vRAM entitlements have been set to provide enough capacity to scale well beyond today’s average consolidation ratios of 5:1. In addition, thanks to pooling, customers will be able to share entitlements among multiple hosts, thereby making more efficient use of available capacity,” VMware further added in the FAQ.

In vSphere 4 and vSphere 4.1, VMware uses a per-CPU licensing model that’s based on the number of server cores. But in vSphere 5, VMware is pegging licensing cost to the amount of physical memory that customers allocate to virtual machines on the host. Customers can pool the allotment, called vRAM, across their entire data center, and VMware isn’t imposing any size limits on the pooling.

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We will be holding an event in the next few weeks which will be focused on server virtualisation, VMware’s new pricing strategy, and how it may affect your organisation. If you have any feedback and/or are interested in this topic, please email us to register your interest, and more details will follow.