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.
via the fine folks at VMware!