virtualization.info has learned VMware is about to drastically reduce VMware Infrastructure 3 (aka ESX Server & VirtualCenter) price.
In September, possible with a launch at VMworld 2007, VMware will announce a new promotion called Foundation, bundling together three ESX Servers Started Edition and one VirtualCenter (capped to manage those three virtualization hosts) for $3,000.
This move will make harder compete for rivals XenSource (now acquired by Citrix) and Virtual Iron, which are focusing their marketing efforts in providing low cost alternatives to ESX Server.
Just last week virtualization.info published a brief analysis of how VMware strategy is slightly changing to address SMBs needs. This upcoming price reduction is part of that strategy and will possibly give VMware more market shares before Citrix and Microsoft arrival.
Update: VMware just confirmed this promotion through its corporate blog.