{"id":11320,"date":"2011-07-15T18:24:09","date_gmt":"2011-07-15T18:24:09","guid":{"rendered":"https:\/\/aidanfinn.com\/?p=11320"},"modified":"2011-07-15T18:24:09","modified_gmt":"2011-07-15T18:24:09","slug":"new-vmware-licensing-really-are-they-mental-or-what","status":"publish","type":"post","link":"https:\/\/aidanfinn.com\/?p=11320","title":{"rendered":"New VMware Licensing \u2013 Really? Are they Mental or What?"},"content":{"rendered":"<p>You may just have noticed a slight pro-Hyper-V bias to this blog <img decoding=\"async\" style=\"border-bottom-style: none; border-left-style: none; border-top-style: none; border-right-style: none\" class=\"wlEmoticon wlEmoticon-smile\" alt=\"Smile\" src=\"https:\/\/aidanfinn.com\/wp-content\/uploads\/2011\/07\/wlEmoticon-smile1.png\" \/>&#160; Yeah, I prefer it because I think it does what I need and there is more focus from Microsoft on what the business cares about: business applications.&#160; But from time to time I\u2019ve said that VMware have an excellent server <em>virtualisation <\/em>product.&#160; Recently I\u2019ve been heard to say that I think VMware got a huge leap on Microsoft by virtually stealing the term Private Cloud in their marketing efforts.&#160; A few of us geeks know what Microsoft are up to.&#160; VMware have been doing huge road shows to reach a much wider audience to say \u201cwe <em>are<\/em> the private, public, and hybrid cloud\u201d.&#160; That might be about to change.<\/p>\n<p>VMware announced their new pricing structure.&#160; It is moving away from a predictable per host model to a model that charges for processors and assigned memory.&#160; <\/p>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"2\" width=\"401\">\n<tbody>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p><b><u>SKU<\/u><\/b><\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p><b><u>vRAM entitlement<\/u><\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p>vSphere 5 Essentials Kit<\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p>24 GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p>vSphere 5 Essentials Plus Kit<\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p>24 GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p>vSphere 5 Standard<\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p>24 GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p>vSphere 5 Enterprise<\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p>32 GB<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"199\">\n<p>vSphere 5 Enterprise Plus<\/p>\n<\/td>\n<td valign=\"top\" width=\"200\">\n<p>48 GB<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>By the way, ESXi 5 (the free one) entitles you to a not-so-massive 8GB of RAM.&#160; An example is a typical DL380 or R710 host with 2 CPUs and 196 GB RAM.&#160; To license it you will need 4 * vSphere 5 Enterprise Plus licenses.&#160; They cost <a href=\"http:\/\/www.vmware.com\/files\/pdf\/vsphere_pricing.pdf\" target=\"_blank\">$3,495<\/a> retail each.&#160; So virtualisation (only) on that host will cost $13,980<\/p>\n<p>Rather confusingly, cloud deployments have a different licensing model for vCloud Director, etc.&#160; They are sold on a VM-bundle basis.&#160; vCloud Director costs $3,750 for 25 VMs.&#160; Not cheap, not at all!&#160; vOperations is more money and the much ballyhooed SRM is seriously mad money.<\/p>\n<p>VMware customers are expressing their dissatisfaction all over the net.&#160; Many are reporting that this vTax (as Microsoft cleverly calls it) is going to increase their virtualisation costs significantly.&#160; And don\u2019t forget, this gives you your virtualisation licensing and nothing else.<\/p>\n<p>Let\u2019s saunter over to the Microsoft alternative.&#160; If you license your Windows VMs correctly (on any virtualisation platform) then you\u2019re probably licensing per host, using DataCenter edition.&#160; That licenses all the host (if required) and unlimited number of VMs on that host.&#160; The retail (and no one pays retail!) price is $2,999.&#160; That DL380 or R710 will be licensed for unlimited Windows Server VMs for $5,998.&#160; <\/p>\n<p>By the way, you can install that Windows Server Datacenter on the host (you\u2019re entitled to) and enable Hyper-V instead of ESXi.&#160; All of the features of Hyper-V are included at no hidden or extra cost.&#160; Clustering, Live Migration, Dynamic Memory are all there.&#160; Hyper-V Replica is on the way in Windows Server 8 (announced this week at WPC) to replicate VM workloads from host to host, site to site.&#160; No need for VMware.<\/p>\n<p>But aren\u2019t VMware the private cloud?&#160; Bollox!&#160; If you want private cloud then look at the <em>service (<\/em>the business application) centric System Center Virtual Machine Manager 2012.&#160; You can get that as part of a bundle from Microsoft called the System Center Management Suite.&#160; You can license a 2 CPU host (and all VMs and applications on that host) for all of Microsoft\u2019s systems management products for $5,240 (retail).&#160; That\u2019s private cloud, virtualisation management, enterprise monitoring, service\/helpdesk management, backup, configuration management, and runbook automation.&#160; In other words, you can manage the entire <em>service<\/em> stack \u2013 the stuff that the business cares about.<\/p>\n<p>Let\u2019s compare the two vendors on a single 2U server with 2 CPUs and 196 GB RAM (my hardware sweet spot by the way).&#160; We\u2019ll also assume that there are 50 VMs on this host:<\/p>\n<table border=\"1\" cellspacing=\"0\" cellpadding=\"2\" width=\"611\">\n<tbody>\n<tr>\n<td valign=\"top\" width=\"118\"><strong><u>Product<\/u><\/strong><\/td>\n<td valign=\"top\" width=\"114\"><strong><u>Microsoft<\/u><\/strong><\/td>\n<td valign=\"top\" width=\"103\"><strong><u>VMware<\/u><\/strong><\/td>\n<td valign=\"top\" width=\"274\"><strong><u>Comments<\/u><\/strong><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"118\">\n<p>Virtualisation<\/p>\n<\/td>\n<td valign=\"top\" width=\"114\">Free<\/td>\n<td valign=\"top\" width=\"103\">4 * vSphere 5 Enterprise Plus $13,980<\/td>\n<td valign=\"top\" width=\"274\">Hyper-V is included in Windows licensing so it\u2019s free.&#160; The Microsoft option is already $13,980 ahead.<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"118\">Windows for Unlimited VMs<\/td>\n<td valign=\"top\" width=\"117\">2 * Windows Server DC          <br \/>$5,998<\/td>\n<td valign=\"top\" width=\"112\">2 * Windows Server DC          <br \/>$5,998<\/td>\n<td valign=\"top\" width=\"274\">&#160;<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"118\">Monitoring<\/td>\n<td valign=\"top\" width=\"117\">System Center Management Suite DC          <br \/>$5,240<\/td>\n<td valign=\"top\" width=\"112\">\n<p>vCenter Operations (25 VM pack) * 2<\/p>\n<p><a href=\"http:\/\/store.vmware.com\/store\/vmware\/en_US\/pd\/productID.227748100\/?resid=TiCCkQoHArEAAEvO9HIAAAA3&amp;rests=1310753425590\" target=\"_blank\">$7,564<\/a><\/p>\n<\/td>\n<td valign=\"top\" width=\"274\">Not a good comparison: MSFT option includes licensing to use all of Microsoft\u2019s System Center products and it\u2019s still around 1\/3 cheaper!<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\" width=\"118\">Total<\/td>\n<td valign=\"top\" width=\"117\"><strong>$11,238<\/strong><\/td>\n<td valign=\"top\" width=\"112\"><strong>$27,542<\/strong><\/td>\n<td valign=\"top\" width=\"274\">MSFT is $16,304 (59%) cheaper, doesn\u2019t limit your RAM assignment to VMs, and includes all of their management products.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>What is a private cloud?&#160; It\u2019s a mechanism where end users will freely deploy VMs as and when they need them, with no restrictions placed on them by IT.&#160; We can measure and optionally cross-charge.&#160; But do we really want to get into the whole \u201cwe can\u2019t use that much RAM because it\u2019ll add another $4K tax on our virtualisation.&#160; Sorry the business will need to do without!\u201d.&#160; Not good.&#160; <\/p>\n<p>If I\u2019m a customer, I have to seriously revisit the Microsoft option.&#160; It\u2019s 59% cheaper, does way more across the entire application stack, and the focus is on the business application in the private cloud, not on the irrelevant (yeah I said it) hypervisor layer that can probably fit on a tiny disk.&#160; And with all those cash savings, I can refocus my budget on taking advantage of all those management systems.<\/p>\n<p>If&#8217; I\u2019m a consulting company, I look at what I make margin on.&#160; You\u2019re lucky to make 10% margin on software.&#160; Services are where the money really is.&#160; If you\u2019re selling VMware to your customer then you\u2019re getting them to spend 59% more on software that you\u2019ll make 10% margin on.&#160; If you sold the MSFT alternative then you know that customer has 59% extra budget that can be spent on services.&#160; They\u2019ll have all that System Center licensing goodness that you can revisit to deploy and engineer.&#160; That\u2019s 70%+ margin on human effort.&#160; What sounds better and more profitable?&#160; And you know what: more of your competition are taking advantage of this.&#160; Why aren\u2019t you?<\/p>\n<div style=\"padding-bottom: 0px; margin: 0px; padding-left: 0px; padding-right: 0px; display: inline; float: none; padding-top: 0px\" id=\"scid:0767317B-992E-4b12-91E0-4F059A8CECA8:7c41b1d7-9f87-4386-95e6-2b1b3ec01449\" class=\"wlWriterEditableSmartContent\">Technorati Tags: <a href=\"http:\/\/technorati.com\/tags\/VMware\" rel=\"tag\">VMware<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Hyper-V\" rel=\"tag\">Hyper-V<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Private+Cloud\" rel=\"tag\">Private Cloud<\/a>,<a href=\"http:\/\/technorati.com\/tags\/Virtualisation\" rel=\"tag\">Virtualisation<\/a>,<a href=\"http:\/\/technorati.com\/tags\/System+Center\" rel=\"tag\">System Center<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>You may just have noticed a slight pro-Hyper-V bias to this blog &#160; Yeah, I prefer it because I think it does what I need and there is more focus from Microsoft on what the business cares about: business applications.&#160; But from time to time I\u2019ve said that VMware have an excellent server virtualisation product.&#160; &hellip; <a href=\"https:\/\/aidanfinn.com\/?p=11320\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;New VMware Licensing \u2013 Really? Are they Mental or What?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[46],"tags":[181,88,193,195,103],"class_list":["post-11320","post","type-post","status-publish","format-standard","hentry","category-virtualisation","tag-hyper-v","tag-private-cloud","tag-system-center","tag-virtualisation","tag-vmware"],"aioseo_notices":[],"jetpack_featured_media_url":"","amp_enabled":true,"_links":{"self":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts\/11320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=11320"}],"version-history":[{"count":0,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=\/wp\/v2\/posts\/11320\/revisions"}],"wp:attachment":[{"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=11320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=11320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aidanfinn.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=11320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}