Home Cloud Computing VMware: OpEx is Not a Sunk Cost for Future Business

VMware: OpEx is Not a Sunk Cost for Future Business

VMware: OpEx is Not a Sunk Cost for Future Business

For many years, cloud providers have tried to limit their operational costs to keep margins high and healthy. In recent times, a few ‘competitive’ products have poked their heads above the parapet to try to challenge VMware’s hypervisor market share, through low cost licensing and a ‘good enough’ functional approach. However, whilst the upfront license cost looks attractive at the point of sale the real question is what is the total operational cost (or TCO?)? The service provider market has learned from earlier attempts with various other Hypervisors and cloud platforms that getting seduced with lower upfront costs often results in more expense in the long term in terms of operating cost and difficulty in capturing enterprise workloads, many of which run on VMware today.

So why should cloud providers be looking at ‘best in breed’ Hypervisors and cloud solutions rather than ‘good enough’ do-it-yourself infrastructure solutions? Recently we have seen a trend where the Line of Business (LOB) drive the Infrastructure and Operations (I&O) teams into submission to use highly consumable mega-cloud infrastructure and services to gain agility and speed. This has led to the same internal expectations of I&O services. Mega cloud has beaten and normalised pricing expectations for cloud providers to ground zero – putting massive pressure on their sales with aggressive pricing of their services to be successful. As a result, something has to give.Read the entire article here, OpEx is Not a Sunk Cost for Future Business

via the fine folks at VMware!

VMware VMware is the leader in virtualization and cloud infrastructure solutions that enable businesses to thrive in the Cloud Era. Customers rely on VMware to help them transform the way they build, deliver and consume Information Technology resources in a manner that is evolutionary and based on their specific needs. With 2013 revenues of $5.21 billion, VMware has more than 500,000 customers and 75,000 partners. The company is headquartered in Silicon Valley with offices throughout the world and can be found online at www.vmware.com.

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