VMware Introduces New Virtualization Offering for Small- to Medium-Sized Businesses

VMware has announced a new virtualization offering aimed at small- to medium-sized businesses (SMBs), following criticism that its flagship product was too expensive and feature-rich for their needs.

The company's new vSphere Express is designed as a cost-effective solution for organizations requiring essential virtualization capabilities. This move comes after many SMB customers reportedly felt pressured by VMware sales representatives to upgrade to the more comprehensive, but also more costly, VMware Cloud Foundation (VCF). Some of these customers had been told that the previous entry-level option, vSphere Standard, was no longer available.

VMware has confirmed that it will offer a per-core subscription license for vSphere Express at a significantly lower price than its current offerings. However, the company declined to provide specific pricing details. The new product is set to compete with other virtualization solutions on the market, which often cater more directly to SMB needs and budgets.

IT distributor TD Synnex has listed vSphere Express as priced at $9,600 per year for organizations running it on up to 128 cores. Interestingly, this price does not decrease for fewer core configurations, potentially making it less appealing to very small-scale users.

VMware's vSphere Express offers basic virtualization capabilities for organizations with limited needs. The product includes features such as live migration of running virtual machines through vMotion, which improves migration speed and efficiency. High availability is also a key feature, allowing for the automated restart of failed virtual machines.

One notable limitation of vSphere Express is that it only supports discrete instances of virtualization, meaning organizations cannot manage them centrally. This could be a drawback for larger companies with complex IT infrastructures. The product's design seems to cater to smaller-scale users who require basic virtualization capabilities without the need for extensive management tools.

VMware's focus on vSphere Express is part of a broader effort to address the needs of lower-end customers who want core virtualization capabilities but don't require the advanced features offered by other products. According to VMware officials, this shift in focus reflects customer feedback and a recognition that not all organizations need or can afford the more comprehensive offerings.

The release of vSphere Express marks a departure from VMware's recent emphasis on enterprise-size customers since its takeover by Broadcom. The company has streamlined its product lineup and reduced the number of channel partners it works with, but this new focus on low-end virtualization represents a significant shift in strategy.

VMware has been under Broadcom's ownership, but its recent product releases suggest that the company may be concerned about losing business from smaller organizations.

This concern is reflected in vSphere Express, a new low-end virtualization offering designed for up to 128 cores. The move appears to be a response to customers of various sizes looking elsewhere due to the changes made by Broadcom.

According to observers, these changes have pushed customers to explore their options and potentially migrate away from VMware's products. Nick Watson, chief technologist at C4C Group, believes that vSphere Express is an attempt to stem this tide.

VMware's existing product lineup can be costly and time-consuming to migrate, making it a significant undertaking for small and medium-sized businesses with limited resources.

Small businesses that have already switched to VMware's competitors or those whose preferred resellers no longer work with the company will likely face significant challenges in adopting vSphere Express.

These firms may feel betrayed by Broadcom's decision to release a low-end virtualization offering that could potentially cannibalize sales of their existing products. A Reddit user recently expressed frustration and distrust towards Broadcom, stating they have two more locations to migrate off VMware and are done with the company's "nightmare".

The concerns voiced by this individual echo those of Dean Colpitts, CTO of Members IT Group, who questioned Broadcom's credibility in a previous interview. He noted that even though migrating to vSphere Express may be straightforward, Broadcom has already demonstrated a lack of trustworthiness towards its customers and partners.