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NEWS, ANALYSIS AND PERSPECTIVE FOR SOLUTION PROVIDERS AND TECHNOLOGY INTEGRATORS





SCALE COMPUTING CEO JEFF READY SLAMS VMWARE LICENSING INCREASE

‘I’d imagine that there’s a lot of customers who are scratching their head over
what this means for them and perhaps opens the doors for us and our partners
when those customers come up for renewal,’ says Scale Computing CEO Jeff Ready
in an interview with CRN.

By Mark Haranas February 05, 2020, 10:59 AM EST
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Jeff Ready: VMware’s Licensing Change ‘Strengthens Our Story’

Scale Computing CEO Jeff Ready says VMware’s plan to increase the cost of its
CPU software licensing for customers who have more than 32 cores will open new
doors for his company and help further differentiate Scale Computing at the
edge.

“I’ve seen a bunch of customers that want to move over to those
higher-core-count types of CPUs. Now all of a sudden, ‘Oh, one VMware license
doesn’t cover you anymore. You’re going to need two, or four, or whatever amount
of licensing it works out to be.’ While that hurts everybody, it’s evidence that
maybe VMware doesn’t understand the edge computing in the midmarket where we
play,” said Ready in an interview with CRN. “I give the marketing department
props for coming up with some spin, but at the end of the day it’s a price
increase.”

Effective April 2, 2020, VMware is changing its per-CPU pricing model in which
any software offering that VMware licenses on a per-CPU basis, VMware will
require one license for up to 32 physical cores. If a CPU has more than 32
cores, additional CPU licenses will need to be purchased. The Palo Alto,
Calif.-based company said the change “moves VMware closer to the current
software-industry-standard model of core-based pricing. This approach will make
it easier for customers to compare software licensing and pricing between VMware
[using per-CPU with up to 32 cores] and other vendors [using per-core pricing].
It also helps us keep our pricing simple and relevant to where the hardware
market is going.”

At the broadest level, Ready says the licensing change “is a punch to the nose
to AMD.”

Here’s what Scale Computing’s CEO has to say about VMware’s licensing increase
and its effect on the market.

 

 
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