VMWare Slashes Price of Starter Virtualization Kit

Paul Lilly

Good news for small and midsize businesses -- VMWare has taken a hatchet to its virtualization software package and cut the price in half .

The entry-level virtualization platform, VSphere Essentials, now runs $495 for six CPUs, which amounts to $83 per chip (in case your internal calculator is on the fritz). That's down from $995 for six CPUs.

"The question is what took them so long [to lower prices]," says Information Technology Intelligence Crop (ITIC) analyst Laura Didio. "The answer is they could afford to wait because they had such a big lead on everyone else in the marketplace. They were able to charge a premium, and the users weren't grousing about it too much."

It's not as though VMWare is any stranger to big price cuts, however. Back in 2008, the company started offering its ESXi hypervisor for free, which was one of the biggest pricing changes the company ever made.

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