Microsoft To CIOs: “Virtualization Is Too Expensive”

At the European CIO summit, Barbara Gordon, Microsoft’s EMEA VP for Enterprise Sales stated that Microsoft sees price as a differentiator in the virtualization market.

“What I hear is that users need to take out cost from their environments and virtualization is the credible approach. You have to ask if virtualization today is delivering cost effective value? And that it justifies the costs that are being charged?” She added, “Price is a differentiator. Existing players are quite expensive. Microsoft can add value to this market with a server play and an application play.”

Asked if the Microsoft Hyper V would have different versions that would offer different levels of functionality similar to those offered by VMware Gordon would not be drawn, according to Australian PC World.

“The time of individual point products is lessening. Our approach will be take a look at the environment, and make sure that the right virtualization functionality fits that environment. The fact is that it is the technologies that work well together and have good functionality that will let the user spend time adding value. So we’ve got a very broad offering.”

Martin Niemer, Senior Product Marketing Manager at VMware (yes, also the one that said Dell would soon start shipping servers with VMware ESX Server 3i included free of charge, said:

“We’re not seeing any signs that customers don’t understand all of the issues associated to moving to virtualization. They understand that what it comes down to is that even the hyper visor is zero cost, which Hyper V won’t be, the question is how many virtual machines can you run on a server. If you can’t run that many you still have to run it on two servers and that doubles your cost. That’s really going to be the decision point. It depends on what users want. If you want basic partitioning you can buy a server with a Vmware ESX 3i integrated hyper visor or buy a foundation version of ESX. And if you want additional functionality such as high availability you can buy a slightly more expensive licence.”

Niemer said he didn’t foresee Vmware being forced to adjust its pricing when Hyper V came to market.

We’ll see.