After reviewing all the latest features, I would say it should be called vSphere 4.5 instead of vSphere 5.0 as there isn’t much improvements feature wise over the previous 4.1 version.

To my great surprise, VMware launched it’s latest flagship product vSphere in such a hurry, it was originally planed to be released in Q3, 2011 or later. Why is this?

As people say “the devil always lies in the details”, after half reading the latest pricing guide, I quickly figured out the answer to the above question.

It’s all about $$$, VMware tells you the latest vSphere 5.0 doesn’t have any more restriction in CPU/RAM on an ESX host, that sounds so fabulous isn’t it? Or IS IT?

Let’s make a simple example:

Say you have the simplest cluster with two ESX hosts with 2 CPU and 128GB RAM each, you Enterprise Plus edition for these two is USD13,980.

With the previous vSphere 4.1, you have UNLMITED vRAM entitlement and up to 48 cores.

With the brand new vSphere 5.0 pricing model, for the same amount of license (ie, USD13,980), you can only have 192GB entitled vRAM, so in order to have the original 256GB vRAM entitlement, you need to pay extra 2 more Enterprise Plus license, which is USD6,990.

The more RAM your server has, the more you are going to pay with the new licensing model.

So my conclusion is VMware is discouraging people going into cloud in reality. Think about this, why would you buy a Dell Poweredge R710 (2 sockets) with only 96GB RAM installed? The maximum RAM Powerdge R710 is capable of 288GB RAM but you need to pay EXTRA (288GB-96GB) / 48GB = 4 more Enterprise Plus license.

In reality, CPU is always the last resource to run out, but RAM IS! Future server will have much more powerful CPU for sure, but RAM is still the number 1 factor deciding your cloud capacity, IOPS is the 2nd, Network is the 3rd and just to remind you once more, CPU is the last!

Very clever VMware, but will potential customer buy this concept is another story.

Hum…may be it’s a strong sign that I can finally sell my VMW after all these years.

Finally, interesting enough, Microsoft also responsed to this interesting topic.  “Microsoft: New VMware Pricing Makes VMware Cloud Costs 4x Microsoft’s”

* Please note the above is my own personal interpretation as a user, it doesn’t represent my current employer or related affiliates.