VMware: I like what you're doing. Unlike Microsoft and Citrix, you focus 100 percent of your efforts on virtualization, and because of that, you continue to lead the field. VMware View is coming along nicely, and you're making progress in brand-new areas like taking virtualization to the cell-phone and smartphone level. Your latest financial quarter provided a boost, demonstrating that the vision of CEO Paul Maritz is paying off.
Still, too often you act as if there's no competition. I hear many complaints about the expense of your solutions. You usually respond with, "You get what you pay for." Well, that argument is outdated. If you need evidence, I refer you back to our cover story, which shows that the hypervisors of your two main competitors stack up well against yours. In fact, I know more than a few admins who are taking a serious look at the alternatives. They all give one reason: price.
Remember that Microsoft and Citrix are combining dev forces, and every single product they produce in this space costs less than an equivalent VMware offering. Also keep in mind that Microsoft, especially, is spending tons of cash to narrow the gap with ESX and Virtual Infrastructure. Some customers don't worry about budgets, and will dole out whatever's necessary to get the best, which-for now-means going with your stuff. Currently, however, we're in an environment where that demographic is shrinking rapidly. I don't believe you can sustain that attitude for much longer, and I can see Microsoft making inroads faster than you expect.
