Red Hat Pricing Model Threatens VMware

Scott Crenshaw, General Manager, Red Hat Enterprise Linux, expressed his point of view on virtualization on the Tuesday conference call. Scott is convinced that Red Hat has chosen a very effective pricing policy that will allow the customer to have a cheaper virtualized system and forget about the need to buy additional licenses each time they think about virtualization.

Small companies are not as dangerous for VMware as Red Hat, its good partner. Crenshaw says: "For virtualization as it’s used today the dominant player is VMware. But because of their pricing model the use of virtualization is limited by the business case. At current price points, there are a small number of use cases that make sense. We're integrating into the operating system at prices that will be quite aggressive. Our approach with virtualization is that the benefits of integrating with the OS are substantial and we can offer pricing models that are economically better relative to VMware."

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