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
Citrix announces Q1 2014 earnings

April 24th, 2014

On April 23, Citrix announced its financial results for first quarter of fiscal year 2014, ended March 31, 2014.
Citrix announced a total revenue of $751 million, for an increase…

VMware results for Q1 2014

April 23rd, 2014

On April 22, VMware released the results about its growth for Q1 2014.
VMware, announced a total  revenue growth of $1.36 billion, for an increase of 14 percent compared to Q1…

Release: Splunk App for VMware 3.1

April 17th, 2014

On April 15 Splunk announced the availability of Splunk App for VMware 3.1, the system that is competing with VMware Log Insight solution to provide administrators with a real-time…

Release: Ubuntu 14.04 LTS

April 15th, 2014

Today Canonical announced the new Ubuntu Linux 14.04 LTS with a press release intriguingly focused on its role as an OpenStack platform.
This release, that will be available on…

VMware introduces vCloud Hybrid Service – Disaster Recovery

April 15th, 2014

VMware vCloud Hybrid Service (vCHS) is the VMware’s owned and operated public Infrastructure as a Service (IaaS) platform, launched in 2013 in the US and extended to Europe in February…

Paper: 3D Graphics for Virtual Desktops Smackdown

April 11th, 2014

PQR, a dutch technology company has released a paper titled:"3D Graphics for Virtual Desktops Smackdown". The paper which contains 139 pages is written by virtualization experts, Benny Tritsch, Ruben Spruijt,…

Microsoft releases preview of Microsoft Azure Automation

April 10th, 2014

Microsoft has announced the release of a preview of Azure Automation. Azure Automation provides an orchestration engine for use within Microsoft Azure. Azure Automation allows you to automate the creation,…

Release: Citrix XenClient 5.1

April 10th, 2014

Citrix has released version 5.1 of its client hypervisor XenClient. XenClient consists of two technologies, the XenClient, which is a type-1 client hypervisor running on selected hardware and the XenClient…

Release: Microsoft Virtual Machine Converter 2.0

April 10th, 2014

In October 2012 Microsoft released version 1.0 of its Virtual Machine Converter tool (MVMC) allowing the conversion of VMware based virtual machines (VM’s) to Hyper-V based VM’s and virtual hard…

Paper: What’s New in VMware vSphere 5.5 Networking

April 9th, 2014

VMware vSpere 5.5 was released in September 2013 and introduced a couple of improvements to the networking capabilities of the vSphere platform.
These enhancements could be resumed as follows:

More…

VMware announces Horizon 6, adding Server Based Computing as a solution

April 9th, 2014

VMware today announced the release of version 6 of its end user computing suite: Horizon.
Starting with this version VMware not only provides a Virtual Desktop Infrastructure (VDI) solution based…

VMware elects Paul Sagan in the board of directors

April 8th, 2014

Yesterday VMware announced that David Goulden, CEO of EMC Information Infrastructure and CFO of EMC, has left the board of directors.
Goulden will be replaced by Paul Sagan, former Akamai’s…

VMware announces Q1 vExperts 2014

April 2nd, 2014

VMware vExpert is the program, started in 2009, that “rewards” the individuals who has been recognized as active contributors of the community that rotates around the VMware ecosystem.
The program…

Red Hat releases beta of Enterprise Virtualization version 3.4

April 1st, 2014

Red Hat has released a beta for an upcoming release of Red Hat Enterprise Virtualization (RHEV) platform version 3.4. Red Hat Enterprise Virtualization (RHEV) is Red Hats virtualization platform based…

 
Monthly Archive