HPE Offers Free Virtualization Software in Bid to Poach VMware Customers

Hewlett Packard Enterprise's new virtualization software promotion is likely to attract end users and resellers who are unhappy with Broadcom's pricing of VMware. During its HPE Discover event in Las Vegas this week, HPE announced that customers could use its 'HPE Morpheus Software—VM Essentials' offering for free for 'up to one year,' per a press release. HPE's website describes its virtualization platform as a 'VMware alternative.' It includes a hardware virtual machine (HVM) hypervisor and unified management and lets users 'manage VMware ESXi and HVM clusters from one console and migrate when you're ready,' HPE's website says.

'New VM Essentials customers can receive up to one free year of licenses for VM Essentials, a year of HPE Zerto for $1 to support non-disruptive migration to HPE virtual machines, and 0 percent interest on software through HPE Financial Services,' HPE's announcement reads, referring to HPE's group for helping IT teams manage funding. The move is seen as a step in the correct direction for HPE as it competes with VMware. By offering a free year of its virtualization software, HPE is providing customers with a low-risk opportunity to try out its platform and potentially migrate away from VMware.

The offer includes a range of benefits, including a free year of licenses, discounted migration support, and flexible financing options. This could be particularly appealing to customers who are looking for alternatives to VMware's pricing model under Broadcom. Why this matters: HPE's move is a strategic play to capitalize on dissatisfaction with VMware's pricing under Broadcom.

For developers and businesses, this offer presents an opportunity to explore alternative virtualization solutions that may better fit their budget and needs. As the virtualization market continues to evolve, it will be interesting to see how VMware responds to HPE's challenge. Will HPE's promotion successfully lure customers away from VMware, or will VMware find ways to retain its customer base?

The competitive dynamics between these two major players will have significant implications for the broader tech industry.