VMware has so far dominated the virtualization space, but Virtual Iron is making a play for more customers through a broad distribution strategy that targets the mid-market.
Market leader VMware has often been criticized for its steep licensing fees. But virtualization is such a hot market that a number of start-ups and ISVs have jumped in, hoping to grab a share of the pie. Distribution could be the way this technology makes its way downmarket.
So far, only VMware and Virtual Iron offer enterprise-class virtualization, and Virtual Iron is moving into the largely untouched SMB space. It’s going up against VMware with its Xen platform in the enterprise data centre virtualization space at about one-fifth the price, according to Virtual Iron (or 65 per cent of the price, according to VMware). Critics say, however, that Virtual Iron is not as robust as VMware, and relies on ISV partners to fill in the gaps.
Regardless, a little bit of competition never hurt anyone.
Virtual Iron has made a number of partnership and distribution announcements that could help it gain a foothold in the mid-market. It just signed an OEM agreement with specialty distributor Arrow Electronics, for example, that allows Arrow’s OEM group to offer Virtual Iron’s base solution pre-installed on white-box servers to VAR customers in North America.
This is good news for VARs interested in getting into virtualization – particularly in Canada where there aren’t that many large enterprises to target with their solutions.
Virtual Iron also joined Intel’s Enabled Server Acceleration Alliance, making its software available to Intel’s OEM and channel partners. And it signed Hewlett-Packard as an authorized reseller, so VARs can sell Virtual Iron on HP Proliant Servers.
HP is a strong supporter of VMware, but in recent months has been looking to move downmarket. Most mid-market customers don’t have experience with virtualization, so HP is turning to its distribution partners to fill in that educational gap.
HP has a portfolio of virtualization services designed to help customers virtualize their IT infrastructure, from desktop to data centre, and recently the vendor broadened the distribution of its HP Care Pack Service (based on VMware’s Capacity Planner). This service is part of its Virtualization Assessment Services, aimed at helping customers make use of under-utilized IT resources.
The HP Care Pack Service is available through rival distributors Arrow and Avnet (it was previously available through KeyLink, which was just acquired by Arrow). The two distributors have a strong pulse on the SMB market in North America, and are in a better position to target that space through their VAR customers.
As the competition heats up, this means potential new business opportunities in the mid-market, with more product offerings and price ranges for VARs to choose from.