Opinion: Virtualization moving to cloud computing pricing models: Is IT ready?

The SearchServerVirtualization.com Advisory Board looks at how VMware’s recent licensing changes toward a more usage based model might effect your organization. 

What are the implications of usage-based virtualization licensing models on IT shops?

Rob McShinsky, Dartmouth-Hitchcock Medical Center
As VMware leads the drive towards the global eventuality of metered service — and as they try to capitalize on their current market dominance — expect to see further refinement of their pricing and licensing model. As for Hyper-V and XenServer, licensing will stay fairly simple (and host based) in order to try to undercut VMware primarily on price, at least for now.

Metered pricing will necessitate changes in management applications to further monitor usage, and in turn, costs. Server sprawl will now equate to increased costs, so additional controls on self provisioning will be critical. Responsible vendor coding and remediation of leaky applications will also be necessary to keep unforeseen costs down.

As utility-based licensing models begin to proliferate, cost savings focus less on hard dollars and more on ease of management. With this change, finding the sweet spot in terms of price and performance will determine the future success of your IT projects.

 

See all the responses from the Advisory Board HERE.

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