New Pricing by VMWare Delights Microsoft

Microsoft Corp. expressed delight at the news of fresh pricing put up by cloud strategy rival VMware by demonstrating the difference in cost of running the servers.

According to CRN, executives at Microsoft’s cloud storage division demonstrated how their clients can easily run their system on clouds through their technology at one fourth of the price charged by VMWare.

While addressing the Worldwide Partners Conference in Los Angeles on Tuesday, Chris Gradwohl, the head architect for cloud enterprise at Redmond, Washington-based Microsoft Corp. stated that the revamped pricing of VMWare is definitely a boon for the company.

"That would be a concern of mine. If pricing doesn't change, that is good for us." stated Gradwohl. After demonstrating the slide show, he also added that, "If your CFO sees that slide, he will question why you use VMware."

The demonstration was based on 20 virtual machines each with 4GB of RAM. The data revealed that while the customers had to pay $103,000 to use Microsoft’s private cloud solution, the cost of using VMware's vCloud Premier Service Provider may go up to $414,000.

According to Mannan Mohammad, an executive at the company revealed that VMWare has inverted the Moore’s law, as it is now charging more to the customer per virtual machine, as the number of machines increases.