In May Oracle announced the acquisition of Virtual Iron. Just five weeks later the database giant fired most of the employees, terminated the partner program and stopped selling new licenses (with a few exceptions).
The only option offered to Virtual Iron customers is to drop their suddenly-in-end-of-live hypervisor and jump on Oracle VM, which is free but certainly has different capabilities and not a single tool to simplify the migration.
Virtual Iron never detailed how many customers they have, but it’s safe to assume that most of them, if not all, are in the SMB segment. And considering that Virtual Iron had a $3.4 million revenue in 2008, it’s likely that its customers are no more than 3000 as The Register is suggesting (more probably much less than that).
For some reasons these customers must be special if VMware decided to announce a notable 40% discount to those ones that will move to vSphere.
The initiative sounds good but uncommon for VMware, which never took too much care of the SMB market in its history.
Oracle anyway is not too happy about this intromission and immediately answers:
Oracle is dedicated to the on-going support of Virtual Iron customers and has enhanced the support offering beyond what was previously available from Virtual Iron. Oracle is pleased to be able to offer its Lifetime Support program for Virtual Iron products, which will extend sustaining support for these products and the Virtual Iron Enterprise Edition products indefinitely.
At least the VMware disturb activity helped to understand why Oracle fired all the Virtual Iron employees but 10:
Oracle has retained Virtual Iron support personnel, so that people who provided support prior to the acquisition will continue to do so going forward.
So the Virtual Iron customers have to choice between a free virtualization platform (Oracle VM) that is about to drastically change (nobody knows how and when) and an expensive (but discounted) virtualization platform (VMware vSphere) that probably the already evaluated and rejected before adopting what they have today.
It’s safe to assume that they are looking instead at Citrix and its free XenServer.
Update: After a number of days in silence also Microsoft enters the discussion, and easy to guess its primary purpose is to smash the VMware offering:
…But a closer look at the VMware offer shows some serious limitations. These include:
- Only Virtual Iron 4.0 or newer customers are eligible
- Only those with active support subscriptions with Virtual Iron are eligible
- Customers must buy a VMware license for every socket on their Virtual Iron contract. This effectively locks in the customer to VMware for size of their Virtual Iron contract.
- The discount is 40% off the list price of the product but only 10% on one-year of support and subscription, 0% for more than one year of support subscription.
- The offer isn’t valid on all SKUs. This means for Virtual Iron customers who want to keep their Live Migration and CPU balancing capability, they need to buy vSphere Enterprise Plus, the most expensive SKU.
As usual VMware is welcome to rectify if the analysis above is not accurate. This post will be further updated to include they perspective as well.
blog comments powered by Disqus
virtualization.info Newest articles
October 21st, 2016
Citrix announced its financial results for third quarter 2016.
The revenues for the second quarter were $841 million for an increase of 3% compared to Q3 2015.
Net income was $132…
October 19th, 2016
2016 edition of VMworld US has been quite turbulent, on the other hand during VMworld Europe, happening these days in Barcelona, the company announced a few more products for the…
October 18th, 2016
Log Insight is a log aggregation, management and analisys tool, that VMware first introduced in 2013 and now is usually compared with Splunk.
Yesterday VMware announced Log Insight’s new major…
October 13th, 2016
Yesterday Microsoft announced the general availability of Windows Server 2016 which the company defines as a cloud-ready OS.
Beside fancy definitions, one of the most relevant perks of this release…
September 22nd, 2016
During Oracle OpenWorld 2016 the company released version 3.4.2 of its enterprise virtualization solution.
Oracle VM is available for both x86 and SPARC based processor architectures and uses the Xen hypervisor…
September 1st, 2016
Today was the last day of VMware’s flagship conference VMworld in Las Vegas, an highly controversial edition which left a good chunk of the audience disoriented if not properly disappointed….
August 11th, 2016
Last week Gartner updated its Magic Quadrant for Cloud Infrastructure as a Service (IaaS) for the year 2016. The Magic Quadrant for the year 2015 was released in May last year…
August 2nd, 2016
Ansible is one of the four main players in the automation market, younger then the well known Chef and Puppet, has been launched in 2013 in Durham, N.C. and acquired…
July 19th, 2016
Yesterday IBM announced its results for Q2 2016.
If we compare with the same quarter in 2015 earnings per share, from continuing operations, decreased 22%. Net income, from continuing operations,…
June 24th, 2016
Red Hat announced its financial results for the first quarter of fiscal year 2017.
Total revenue for the first quarter was $568 million, with an increase of 18% from the…
June 24th, 2016
Today Red Hat released in beta version 4.0 of its KVM-based virtualization platform Red Hat Enterprise Virtualization (RHEV).
As a major release RHEV 4.0 ships a wide series of enhancements including:
June 21st, 2016
virtualization.info has been following WhatMatrix since its inception and, after 6 months since the website has been launched, we are happy to report that its community is growing and contributing…
June 21st, 2016
DockerCon 2016 began yesterday in Seattle with a number of announcements from Docker and key partners.
Here is a quick summary of the day:
Docker 1.12 with built-in orchestration: starting…
June 14th, 2016
Yesterday, Bellevue (WA) based company WinDocks, released a free edition of its homonymous port of the Docker daemon to Windows called WinDocks Community Edition.
The company, founded by a small…