Does VMware Have a Real Future

We all know that technologies come and go. Sometimes, technology companies do the same thing. I've long thought that VMware's days were numbered, and not because there's anything wrong with its technology.

VMware has dominated the virtualization market ever since that market came into being. It has done so the old-fashioned way: by offering good software and support. What could go wrong Well, price is a big weakness when every player in the market, VMware included, is either offering a free virtualization program or baking one into their operating systems. It's hard to compete with free.

Though VMware provides its low-end offerings for free, it can't stay in the game by relying on those alone; it makes its money exclusively from selling high-end virtualization and virtualization management software. Unlike its competitors, VMware doesn't have much of a revenue stream from operating systems and other products. And when it attempted to overcome that weakness, it was blindsided. More on that in a bit.

VMware's biggest problem is one that has laid other companies low: MicrosoftMicrosoft. Slowly but surely, Microsoft's Hyper-V has been making gains against VMware's ESX . Gartner projects that in 2012, Hyper-V will account for 27% of the market, up from 11% two years ago. Within that projected 27%, Gartner says Microsoft will take 85% of all small businesses that use virtual servers. Alles zu Microsoft auf

On top of that, Windows 8 Server boasts a greatly improved version of Hyper-V. Enterprise customers who believe they can't go wrong buying Microsoft are going to start asking why they need VMware as they move to Windows 8 Server.

But Microsoft isn't the whole story, not even when you throw its buddy Citrix, with XenServer, into the mix. Multiple big IT vendors, including IBMIBM, Hewlett-Packard, BMC Software, Intel and Red Hat, have banded together in the Open Virtualization Alliance to promote an open-source virtualization platform -- Kernel-based Virtual Machine (KVM) -- as an alternative to VMware. Alles zu IBM auf

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