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PayPal To Replace VMware With OpenStack
Julie188 writes "This should make VMware nervous. PayPal and eBay are yanking VMware software from some 80,000 servers and replacing it with OpenStack. Initially, PayPal is replacing VMware on about 10,000 computer servers. Those servers will go live this summer."
VMware is not in a monopoly position anymore and can no longer dictate prices to people who have free alternatives.
http://www.openstack.org/user-stories/paypal/
No live migration, no centralized management, none of the features the competitors offer for free.
Live migration is not free, but it is cheap -- less than $1000 bucks per server for a standard license. Central management of Hyper-V requires systemcenter virtual machine manager which is not free.
At sufficient scale, the VMware licensing costs are almost non-consequential. For purchasing VMware to be the better choice, it is not necessary that the license have a lower cost. The ROI needs to be higher. As long as VMware can offer a higher ROI, through functionality, and advanced features, or through greater consolidation ratios (lower cost per virtualized application in a cloud; more workloads per server, less electricity or hardware cost per workload on average), then the organizations who can justify the use of those features will save more money by buying VMware's products and have lower costs than if they used a competitor's product with a lower per-unit license charge.
Competitors' products don't offer free comparable enterprise-quality equivalents to Transparent page sharing (TPS)/Transparent memory compression (memory overcommit), the Cisco Nexus1000V distributed virtual switch, CPU Memory HotPlugging, Virtual Serial Port concentrator, Host Profiles, Resource Pools/Distributed Resource Management, Distributed Power Management, Storage I/O Control, Vmware APIs for Array Integration, vShield Endpoint, vShield App, vShield Edge, vCloud Network and Security (VXLAN), etc.
The competitors' total available functionality is more limited.