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You're in for a surprise if you ever look at their server products. In my environment the VMware licenses cost more than the hardware they run on.

I've said this before, but my experience with VMWare is that they do a very good job estimating the TCO of N physical servers and then they charge you such that it's ~90% of that cost to virtualize them. I.e., VMWare is usually a better deal, but just barely. Drives me insane.

Yeah I know, I previously founded a company doing desktop virtualization on VMware ESX. I know it runs up to $3-5K per server, and that often turns out to be the "cheap" part after you're done with the SAN vendors :)

Even the fortune 500 are complaining about VMware prices though, but they keep paying because their whole datacenters are based on it. Hopefully Hyper-V will at some point provide some counter-weight to keep VMware's pricing in check.

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