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
Release: Red Hat CloudForms 3.2

May 20th, 2015

Red Hat yesterday announced the release of version 3.2. of its cloud management software, CloudForms. CloudForms allows the management of hypervisors from Red Hat, VMware and Microsoft as well as…

Gartner predicts that Worldwide Cloud IaaS spending will grow around 33 percent is 2015

May 20th, 2015

Besides releasing their annual Magic Quadrant for Cloud Infrastructure as a Service, research and consulting firm Gartner also made some predicitons about the growth of Cloud Infrastructure as a Service…

Gartner releases its Magic Quadrant for Cloud Infrastructure as a Service for 2015

May 20th, 2015

Gartner this week updated its Magic Quadrant for Cloud Infrastructure as a Service (IaaS) for the year 2015. The Magic Qudrant for 2014 was released in May last year (covered…

Red Hat announces the Cloud Suite for Applications

May 19th, 2015

Red Hat yesterday announced a new Suite which bundles its cloud portfolio to manage both Infrastructure as a Service (IaaS) and Platform as a Service (PaaS) workloads. The suite, which…

VMware announces new SaaS offering for building, delivering and managing desktops and applications

May 18th, 2015

A day before the start of Citrix annual Synergy conference, rival VMware announced project Enzo. Project Enzo is the name of a new Software as a Service offering from VMware…

Announcements from Citrix annual Synergy Conference

May 18th, 2015

Last week, Citrix held its annual Synergy conference in Orlando. During the conference Citrix made several announcements which will be summarized in this blogpost.
Citrix Workspace Cloud, which is a…

Is Cisco planning to acquire Nutanix? – UPDATED

May 18th, 2015

Last Friday, Storage Newsletter published an article written by Jared Rinderer a senior research analyst at the Equity Capital Research Group stating that Cisco is planning to acquire Nutanix. While…

Release: Citrix XenServer 6.5 Service Pack 1

May 18th, 2015

During its annual Synergy conference last week, Citrix announced the availability of Service Pack 1 for version 6.5 of its virtualization platform XenServer. Version 6.5 of XenServer was released in…

Infographic: OpenStack adoption in Italy

May 11th, 2015

The IT roadmap throughout the digital transformation process is a journey, long and complex, and must not be underestimated. Like any other journey it starts with a first step which…

.infonews welcomes Alessandro Fontana as a team member

May 11th, 2015

12 years ago, in 2003, virtualization.info started to track virtualization market and, in 2010, cloudcomputing.info was launched as a sister publication with a focus on the cloud computing market.
In…

Microsoft announcements from its annual Ignite conference

May 10th, 2015

Last week, Microsoft held its annual Ignite conference in Chicago, Illinois. Ignite is the new name for a series of technical conferences targeted to IT Professionals, which replaces the…

Release: Update Rollup 6 for Microsoft System Center 2012 R2 and Windows Azure Pack – UPDATED

April 30th, 2015

Microsoft has released Update Rollup 6 for the following products within the System Center 2012 R2 suite: Service Manager (SCSM), Operations Manager (SCOM), Virtual Machine Manager (SCVMM) and Service…

Citrix announces Q1 2015 results

April 28th, 2015

Citrix announced its financial results for first quarter 2015.
The revenues for the first quarter were $761 million for an increase of 1% compared to Q1 2014.
Net income was $29…

VMware results for Q1 2015

April 28th, 2015

VMware released the results about its growth for Q1 2015.
VMware, announced a total  revenue growth of $1.51 billion, for an increase of 11 percent compared to Q1 2014. License revenues were…

 
Monthly Archive