Barney's Blog

Blog archive

VMware Price Hike?

There's an old story about economics that I think my dad once told me. It seems that Smirnoff vodka was losing market share to its lower-priced rival, Wolfschmidt, back in the '60s. Instead of slashing its prices to match those of Wolfschmidt, Smirnoff did something no one expected: It raised 'em. All of a sudden, Smirnoff was a premium brand, and sales rose.

Apparently, VMware is the Smirnoff to Hyper-V's Wolfschmidt. Over in Europe, VMware is raising prices, at the exact same time that a nearly free Hyper-V is coming to market.

That may work for a while, but in the long run, VMware is going to have to react to Hyper-V pricing. Look at what happened with Netscape. It kept charging for its browser even as IE was free. Hmm, didn't the Netscape browser business ultimately disappear?

What would you do if you ran VMware? Send your corporate tactics to [email protected].

Posted by Doug Barney on July 17, 2008 at 11:52 AM


Featured

  • Windows Autopilot for HoloLens 2 Hits Preview

    Windows Autopilot, Microsoft's PC self-provisioning program, is now being tested for use with the company's mixed-reality headset, the HoloLens 2.

  • Signs Point to Microsoft Charging for Use of APIs

    There are indications that Microsoft is mulling charging customers for software that uses its application programming interfaces.

  • The 2020 Microsoft Product Roadmap

    From the next major update to Windows 10 to the next generations of .NET and PowerShell, here's what's on tap from Microsoft this year.

  • Microsoft Extends Azure Hybrid Benefit Licensing to Linux

    Microsoft has expanded its Azure Hybrid Benefit licensing program to include Linux servers, particularly Red Hat Enterprise Linux or SUSE Linux Enterprise servers.