Quoting from the VMware official announcement:
VMware, Inc., the global leader in software for industry-standard virtualized desktops and servers, today announced the VMware Service Provider Program (VSPP), which allows hosting providers such as Web hosting services, telecommunications companies and outsourcing businesses to bring to market new virtual infrastructure as service offerings.
The VSPP incorporates a new licensing model that makes the industry-leading VMware Infrastructure suite available to hosting providers on a per-virtual machine, per-month basis.
Hosting providers can choose to license either VMware Infrastructure Enterprise or Starter, enabling them to provide a broad range of utility computing packages for various customer needs, from high-end managed services to individual Web site hosting…
VMware doesn’t disclose prices applied to its partners for this license, letting them charge customers depending on retail offering.
After applying virtualization to thin computing (with VDI effort), VMware now tries to do the same on the hosting market, basically replicating Microsoft Hosting Program and its Services Providers License Agreement (SPLA).
But while thin computing market may be easier to dominate, because traditional server-based computing solutions, never became too popular, on hosting market VMware has to compete with several consolidated players, including relatively new SWsoft, which is conquering the market with its Virtuozzo.
Russian company is aggressively competing with VMware both in Windows/Linux market both in Apple one, with its subsidiary Parallels. At the sime time SWsoft and Microsoft recently enforced their relationship with a support business agreement.
All of this means now VMware has another front of indirect competition with Redmond giant.