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

  • Everything Microsoft Announced at Its Surface Event

    Microsoft showed off its updated and expanded line of Surface devices this week, positioning the new Surface Laptop Studio as its flagship Windows 11 laptop.

  • M&A in Microsoft Channel: Progress Acquires Kemp

    Longtime Microsoft partner Progress Software is acquiring another Microsoft partner in Kemp Technologies.

  • The 2021 Microsoft Product Roadmap

    From Windows 10X to the next generation of Microsoft's application server products, here are the product milestones coming down the pipeline in 2021.

  • Microsoft Says System Center 2022 Will Arrive Early Next Year

    Microsoft is planning to release its new System Center product in the first quarter of 2022, with a private preview arriving within months.