Practical Technology

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Does VMware have a real future?

We all know that technologies come and go. Sometimes, technology companies do the same thing. I’ve long thought that VMware’s days were numbered, and not because there’s anything wrong with its technology.

VMware has dominated the virtualization market ever since that market came into being. It has done so the old-fashioned way: by offering good software and support. What could go wrong? Well, price is a big weakness when every player in the market, VMware included, is either offering a free virtualization program or baking one into their operating systems. It’s hard to compete with free.

Though VMware provides its low-end offerings for free, it can’t stay in the game by relying on those alone; it makes its money exclusively from selling high-end virtualization and virtualization management software. Unlike its competitors, VMware doesn’t have much of a revenue stream from operating systems and other products. And when it attempted to overcome that weakness, it was blindsided.


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