Tuesday, February 4th 2020
VMWare Updates Licensing Model, Setting 32-Core Limit per License
VMWare, one of the most popular virtualization solutions commercially available for businesses and the industry in general, has announced changes to its licensing model. From now on, licensees will have to acquire a license per 32 CPU cores, instead of the former "per socket" model. This effectively means that users who had made a migration to AMD's 64-core EPYC CPUs, for instance, and who saved on both price-per core and VMWare licensing fees compared to Intel customers (who would need two sockets to achieve the same core-count, and thus, two licenses) are now being charged for two licenses for a 64-core, AMD-populated socket. This was a selling point for AMD - the company stated that their high-end EPYC processors could act as a dual-socket setup with a single processor, thanks to EPYC's I/O capabilities and core counts. VMWare claims this change is in line with industry standard pricing models.
Of course this decision from VMWare hits AMD the hardest, and it comes at a time where there are already 48 and 64 core CPUs available in the market. Should this licensing change be done, perhaps it should be in line with the current state of the industry, and not following in a quasi-random core-count (it definitely isn't random, though, and I'll leave it at that). From VMware's perspective, AMD's humongous CPU core counts does affect their bottom line. The official release claiming customers license software based on CPU counts may be valid, and they do allow for free licenses for servers past 32 cores until April 30, 2020. Of course, VMWare is also preparing itself for future industry changes - Intel will obviously increase its core counts in response to AMD's EPYC attack on the expected core counts of professional applications.
Source:
VMware
Of course this decision from VMWare hits AMD the hardest, and it comes at a time where there are already 48 and 64 core CPUs available in the market. Should this licensing change be done, perhaps it should be in line with the current state of the industry, and not following in a quasi-random core-count (it definitely isn't random, though, and I'll leave it at that). From VMware's perspective, AMD's humongous CPU core counts does affect their bottom line. The official release claiming customers license software based on CPU counts may be valid, and they do allow for free licenses for servers past 32 cores until April 30, 2020. Of course, VMWare is also preparing itself for future industry changes - Intel will obviously increase its core counts in response to AMD's EPYC attack on the expected core counts of professional applications.
83 Comments on VMWare Updates Licensing Model, Setting 32-Core Limit per License
I wonder how the licensing costs will be structured when Intel launches its 10nm server chips. Would be interesting to see if there's any major change like this!
This change only affects VMware's clients who have Enterprise Plus and Platinum packages (especially for those who use vSphere and vCenter). Horizon is sold by user anyways so no changes there.
How to Tarnish Platinum: Sell It as Xeon 9200
The Intel Second Generation Xeon Scalable: Cascade Lake, Now with Up To 56-Cores and Optane!
download.microsoft.com/download/3/d/4/3d42bdc2-6725-4b29-b75a-a5b04179958b/percorelicensing_definitions_vlbrief.pdf
virtuallyinclined.com/2019/03/27/windows-server-2019-licensing-calculator/
I should probably add that VMware has this offer on their press release: "Any customer who purchases VMware software per-CPU licenses, to be deployed on a physical server with more than 32-cores per CPU, prior to April 30, 2020 will be eligible for additional free per-CPU licenses to cover the cores on those CPUs."
Your "defense" would sound justifiable if these companies were flocking en masse to AMD but that's clearly not the case! What this move does however is to ~
- egregiously price the competitor (AMD) out of the market with artificial barriers thereby making the cost of going with AMD (high) core count solutions prohibitively expensive!
- make sure that their customers stick to 32 cores or less, even though they'd have better alternatives!
You said 48, 56 cores which clearly is vaporware even for their biggest clients. So what was your point again?Oh man the fact that they mentioned 28 cores in this explanation, it really explains that they are targeting AMD. I mean, why else would they specifically mention "28" and not "24" or "16"? Maybe because, that is the max Intel can provide, and they are trying to provide the smallest disadvantages to owning AMD systems. Note, Intel is the only one that makes 28 core CPUs. AMD makes 8/12/16/24/32/48/64 core CPUs on their SP3 platform. Intel makes 4/6/8/10/12/14/16/18/20/22/24/28/28 core CPUs (basically in steps of 2) on their LGA3647 platform.
Besides, you can add as many threads per core as you like, but performance will go up just a little bit or will even go down. SMT beyond 2 threads per core has very limited uses where it actually achieves better performance, which is why we haven't seen it beyond certain POWER processors, if I remember correctly. Eh, Microsoft did this same change in their Windows Server licensing schemes a few years ago, I don't understand why VMware doing it would be because they're targeting AMD because of Intel.
Bah, actually, MS did it worse. The WS license is 2-core pack, and you have to get one for every pair of cores, last I checked.
I wonder if they still push for those CALs too...
VMware could give two shits and a moth ball what hardware there software goes on. Dollars aren't red or blue. They are green.
This clearly is to hurt AMD the most because they have a long term dealing with intel, and clearly comes out of the shareholders not being happy that their friends gets hurt by AMD.
Its pure nonsense if you had ages the per socket license and now switch to core count, there is no other reason than hurt those companies who went for the not intel brand.
Besides, twofold increase in core count has not happened in a very long time, much less with the same economic impact.
www.vmware.com/company/news/updates/cpu-pricing-model-update-feb-2020.html Shareholders are certainly not happy about revenue being as much as halved.
Intel's well-being has no role here, but you're right saying that Intel and VMware are partners. One makes 90% of server CPUs and the other 75% of rather fundamental software.
But don't worry. Maybe AMD will get to that some day. :)
And, seriously, take a moment to learn how this licensing works. It's not that complex...