Oracle and VMware fight over the Virtual Iron customers – UPDATED

Posted by virtualization.info Staff   |   Wednesday, July 8th, 2009   |  

oracle logo

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
Microsoft releases Azure Stack TP1

February 1st, 2016

During Ignite 2015, back in September, Microsoft announced Microsoft Azure Stack as the building block for its hybrid cloud strategy.
What Microsoft is saying with this move is that, despite…

Release: Ansible 2.0

January 14th, 2016

Ansible is an IT automation tool especially popular within the developers’ community, thanks to its simplicity and agentless nature.
Three months away from its acquisition by Red Hat the company announced…

Nutanix goes Public

December 23rd, 2015

Nutanix is a provider of converged infrastructure, basically a physical server containing both compute and storage driven by an Installed Hypervisor of choice, this server, called a node can…

Release: VMware vRealize Automation 7 and VMware vRealize Business Standard 7

December 23rd, 2015

Last week VMware finally completed the first major update of VMware vRealize Suite, its well known cloud management solution, releasing in GA both vRealize Automation 7 and vRealize Business Standard…

WhatMatrix.com goes Live

December 15th, 2015

virtualization.info has been following Virtualization Matrix since its early steps and we recently wrote about its crowdsourced-powered heir: WhatMatrix.
Today we are happy to report that its community, formed…

Microsoft loves Red Hat: The business implications

November 18th, 2015

As you may have heard, Microsoft recently announced its “historical” partnership with Red Hat, something that a number of analysts already claimed as a milestone for both companies but especially for…

Red Hat acquires Ansible

October 16th, 2015

Today Red Hat announced that it has signed a definitive agreement to acquire Ansible, provider of an IT automation tool popular especially within the developers’ community.
The acquisition is rumored…

Dell acquires EMC, owner of VMware and Pivotal

October 12th, 2015

Dell today announced that it signed a definitive agreement to acquire EMC Corporation for a total of $67 billion, making it the largest ever acquisition in the technology industry so…

Red Hat announces earnings for Q2 2015

October 2nd, 2015

Red Hat announced its financial results for the second quarter of fiscal year 2016.
Total revenue for the second quarter ended Augus 31, 2015 was $504 million, with an increase…

Citrix retires XenClient

September 21st, 2015

Citrix on its website announced that it started the End-of-Life process of Citrix XenClient Enterprise, the end of life date will be December 12, 2016.
XenClient consists of two technologies,…

Release: Altaro VM Backup V6

September 9th, 2015

Altaro Software, company specialized in backup for virtualized environments, specifically Microsoft Hyper-V, announced the release of Altaro VM Backup, previously known as Altaro Hyper-V Backup, rebranded to introduce VMware…

Release: CloudPhysics for vSphere

September 9th, 2015

CloudPhysics, provider of a SaaS performance and capacity analytics solution, announced to have released a new version of its SaaS offering allowing now VMware users to preempt and eliminate…

VMware announcements from its annual VMworld US conference

September 2nd, 2015

During its annual VMworld conference held between August 30 and September 3 in San Fransicso VMware made several announcements. During the keynote on Monday several data center related announcements and…

Release: VMware Workstation 12 Pro, Player 12, Fusion 8 and Fusion Pro 8

August 25th, 2015

VMware today released version 12 of its type-2 client hypervisor products for Microsoft Windows: Workstation Pro and Player and version 8 of its client hypervisor products for Mac OSX: Fusion….

 
Monthly Archive