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Vmware Infrastructure Sales Reference Card VMware Infrastructure 3.5 http://www.vmware.com/ October 2008 Vendor and Solution Overview VMware Infrastructure 3.5 is a server virtualization suite that includes the ESX hypervisor and associated management tools. Quick Facts VMware has the largest market share in server virtualization, and enjoys strong brand Corporate Profile: awareness as a virtualization provider. Founded 1998 VMware offers free versions of some of its software (e.g. VMware Server, ESXi) to broaden adoption Ownership Public (VMW) VMware was first to create bare-metal x86 virtualization solutions, and has built up its 2007 Revenue $1.33B leading market share while facing limited competition. Given that its solution was built prior to the availability of virtualization-aware processors Employees 6,000+ and operating systems, VMware’s solution features a first-generation architecture that Office Headquarters Palo Alto, CA USA employs a “binary translation” approach to virtualization that tricks an OS into thinking it is running on physical hardware. Regional Offices Worldwide Recent innovations such as hardware virtualization assist (Intel VT and AMD-V) and Market Share 86% (2007) paravirtualization have cut into VMware’s technology lead. Paravirtualization enables full cooperation between the OS and the hypervisor to deliver the best performance. Hardware-virtualization assist refers to virtualization-aware processors which eliminate Related Products VMware Server the need to perform binary instruction translation in the hypervisor’s software stack. VMware Workstation These developments are more and more disruptive to VMware given its reliance on an VMware VDI older architecture, similar to the “Innovator’s Dilemma” effect chronicled in the book by Harvard professor Clayton Christensen. Second-generation solutions like XenServer employ both paravirtualization and hardware virtualization assist. Due to these innovations, VMware now faces significantly more competition. Competi- tors like Citrix XenServer that exploit these innovations are able to develop more ele- gant solutions that can be innovated at a faster pace, and bring them to market at price that is reflective of a more mature, competitive market. Pricing and Packaging Basics Citrix XenServer pricing and packaging is simple and straightforward. Pricing below is for 2 or 4-socket systems. XenServer Express Edition: Free XenServer Standard Edition: $900 per server (includes 12 months of Subscription Advantage) Citrix XenServer XenServer Enterprise Edition: $3,000 per server (includes 12 months of Subscription Advantage) XenServer Platinum Edition: $5,000 per server (includes 12 months of Subscription Advantage) Phone and Web-based support is available via XenServer Preferred ($1,500) or Citrix Preferred (starting at $7,500) agreements. Annual licensing is also available. VMware pricing and packaging for VI3 3.5 is complex and often confusing. The VI3 3.5 product line includes support for either the ESX or ESX 3i hypervisors. ESX is free (as part of VI3 3.5) and custom- ers need to install it themselves on their servers. ESX 3i will be delivered for $495 per two-processor server on-board systems from Dell, HP, and others in 2008. New features in VI3 3.5 include Update Manager, Distributed Power Management (part of DRS), Storage VMotion (part of VMotion), and Guided Consolidation (part of VirtualCenter) Virtual Infrastructure Foundation (previously “Starter”). This version is targeted at smaller organiza- tions. The Foundation edition includes consolidated backup and Update Manager, but lacks high- availability or VMotion capabilities. Prices for this edition start at $995 per server (not including $545 for 1 year of Gold Support and Subscription). Customers can purchase multi-server management via the VirtualCenter Foundation edition for $1,495 (not including support for $545), which is limited to managing three servers or less. VMware VI 3.5 Virtual Infrastructure Standard is targeted at organizations with more than three physical servers. Standard Edition includes high-availability features, but not VMotion. List price is $2,995 per server (for a two-processor server) and includes 1 year of subscription. Gold support includes unlimited phone incidents (5x12 coverage) for an additional $629 per server while Platinum support includes 24x7 cov- erage for $749 per server. Customers also need to purchase VirtualCenter for multi-server manage- ment separately at a list price of $4,995 (not including $1,049 for Gold support or $1,249 for Platinum support). Virtual Infrastructure Enterprise includes all the features of Standard and adds VMotion, Storage VMotion, and DRS features. List price is $5,750 per server (for a two-processor server). Platinum support includes unlimited phone incidents (24x7 coverage) for an additional $1,438 per server. Cus- tomers will need to purchase VirtualCenter for multi-server management separately at a list price of $4,995 (not including an additional $1,249 for Platinum support). Citrix Confidential—Internal and Authorized Partner Use Only Sales Reference Card VMware Infrastructure 3.5 Citrix Confidential—Internal and Authorized Partner Use Only Solution Cost Comparison The following chart compares the bottom-line costs (SRP) of several comparable server virtualization deployments. Citrix XenServer (pricing effective September 2008) VMware VI3 3.5 (pricing effective March 2008) Note: All options include 12 months of Subscription Note: VMware pricing does not include the cost of a second Virtual- Advantage; Citrix Preferred 25 support available in NA Center license required for a disaster recovery site. and EMEA. XenServer pricing is the same for both 2 and 4-socket VMware pricing is typically quoted for 2-socket servers. Pricing for 4- systems. socket systems is 2x the price for 2-socket servers. Option 1: Standard Edition with XenServer Preferred (includes multi-server management, but not XenMotion Option 1: Foundation Edition with Gold Support live migration or resource pools) (does not include high availability or VMotion live migration) 5 pack XenServer Standard Edition—$4,050 1 license VirtualCenter—$4,995 XenServer Preferred Support (5 incidents) —$1,500 Gold Support for VirtualCenter—$1,049 TOTAL—$5,550 (2 or 4 socket systems) 5 licenses VMware VI3 Foundation Edition—$4,975 for 2 sockets Gold Support for 5 servers—$2,725 for 2 sockets Option 2: Enterprise Edition with XenServer Pre- TOTAL—$13,744 (2-socket systems) ferred (includes multi-server management, XenMotion TOTAL—$21,444 (4-socket systems) live migration, and resource pools) 5 pack XenServer Enterprise Edition—$13,500 Option 2: Standard Edition with Gold Support XenServer Preferred Support (5 incidents) —$1,500 (does not include VMotion live migration features) 5 physical servers TOTAL—$15,000 (2 or 4 socket systems) 1 license VirtualCenter—$4,995 Gold Support for VirtualCenter—$1,049 Option 3: Platinum Edition with Preferred 25 5 licenses VMware VI3 Standard Edition—$14,975 for 2 sockets (includes multi-server management, XenMotion live Gold Support for 5 servers—$3,145 for 2 sockets migration, resource pools, and physical and virtual TOTAL—$24,164 (2-socket systems) server provisioning) TOTAL—$42,284 (4-socket systems) 5 pack XenServer Platinum Edition—$22,500 Citrix Preferred 25 (25 incidents)—$7,500 Option 3: Enterprise Edition with Platinum Support TOTAL—$30,000 (2 or 4 socket systems) (includes VMotion live migration features) 1 license VirtualCenter—$4,995 Platinum Support for VirtualCenter—$1,249 5 licenses VMware VI3 Enterprise Edition—$28,750 for 2 sockets Platinum Support for 5 servers—$7,190 for 2 sockets TOTAL—$42,184 (2-socket systems) TOTAL—$78,124 (4-socket systems) 1 licenses VirtualCenter—$4.995 Platinum Support for VirtualCenter —$1,249 Two 10 packs XenServer Platinum Edition—$80,000 20 licenses of VMware VI3 Enterprise—$115,000 for 2 sockets 20 physical servers Citrix Preferred 25 (25 incidents)—$7,500 Platinum Support for 20 servers—$28,760 for 2 sockets TOTAL—$87,500 TOTAL—$150,004 (2-socket systems) TOTAL—$293,764 (4-socket systems) VMware Areas to Question Summary: VMware has historically faced little competition, thereby allowing them to capitalize on a closed, proprietary product design. The weaknesses from its legacy, early-generation design are starting to show. The next-generation, open design of XenServer (backed by a trusted vendor like Citrix) creates increased competition for VMware providing real choice for customers and solution providers. VMware continues to charge a premium for its products, which is a holdover from the days when it faced little to no competition. For example, VMware charges customers extra for its multi-server VirtualCenter Value management console. For site failover/disaster recovery (one of the key business drivers of server virtu- alization), VMware requires customers to purchase VirtualCenter twice—once for each site. VMware’s desktop virtualization offering only support the VMware hypervisor, offering clear evidence of Desktop Virtualization Lock-in their aim to “lock in” customers to their platform. By comparison, Citrix XenDesktop supports Hyper-V, XenServer, and VMware, thereby allowing customers much broader choice. VMware is experiencing a classic case of “innovator’s dilemma” finding it difficult to prioritize its engineer- ing investment between support for legacy products and exploiting new architectures. VMware’s technol- ogy is based on “binary translation,” an approach which pre-dates both virtualization-enabled
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