1 Proprietary software using OSS
VMware vSphere
Abani, Bhavesh, Aravind
2 vSphere
Topics covered
What is vSphere Revenue Growth
● Introduction ● Licensing model ● Growth factors
● OSS used in ● Revenue streams ● Market Share
vSphere ● Adoption
2
3 VWware vSphere
What is Linux Kernel
vSphere
VMware vSphere is VMware's virtualization
platform, which transforms data centers into vSphere
aggregated computing infrastructures that include Open vSwitch
CPU, storage, and networking resources. Docker
(Containerization) (OVS)
Some popular features are: Virtual Machines(VM),
VMotion, Distributed Resource Scheduler (DRS)
and Scalability.
1. Kubernetes 2. OpenStack
Apache License 2.0. Apache License 2.0
More OSS
3. Ceph 4. Terraform
LGPL (Lesser General Mozilla Public License
Public License) version 2.1 (MPL) 2.0.
used
5. Ansible 6. Git and GitHub
GPL v3.0 License GNU General Public
License (GPL) version 2
5
Revenue Streams
1. Perpetual Licensing
● Customers purchase a one-time license to use a specific version of VMware vSphere
software. This license allows them to use the product indefinitely, but it typically
only includes access to updates for a limited time (e.g., one year). Customers must
then renew the license to continue receiving technical support, security patches,
and product upgrades.
● Example: VMware vSphere Standard, Enterprise Plus, or vSphere with Operations
Management.
● Available for traditional, on-premises deployments.
● Generates revenue upfront from the license sale.
6
Revenue Streams
2. vSphere+ Subscription Model
● VMware has shifted toward a subscription-based model, particularly for cloud-
focused products. vSphere can be licensed through subscriptions that provide
ongoing access to the software, as well as regular updates, cloud integrations, and
enterprise features.
● A subscription-based version of vSphere that allows organizations to subscribe to
vSphere on a term basis (1-3 years).
● This model gives customers access to a full suite of vSphere features but comes with
ongoing subscription costs rather than a one-time perpetual license.
● Available for cloud-based or hybrid-cloud deployments.
● generates recurring revenue creating more predictable cash flow over time.
7
Revenue Streams
3. Add-Ons and Enterprise Features
● vSphere with Operations Management (vSOM): This package combines
vSphere with advanced monitoring and management tools eg: vRealize
Operations.
● vSphere HA (High Availability) and vSphere FT (Fault Tolerance): These
advanced features are often sold as part of higher-tier editions of vSphere
(Enterprise Plus).
● vSAN (Virtual SAN): A software-defined storage solution integrated with
vSphere that enables hyper-converged infrastructure (HCI). VMware generates
additional revenue from vSAN licenses.
● Allows expansion of product offerings and create tiered pricing that can support
different levels of enterprise needs. Hence, required Enterprise License.
8
Growth
Growth Factors
● vSphere with Operations Management (vSOM): This package combines
vSphere with advanced monitoring and management tools eg: vRealize
Operations.
● vSphere HA (High Availability) and vSphere FT (Fault Tolerance): These
advanced features are often sold as part of higher-tier editions of vSphere
(Enterprise Plus).
● vSAN (Virtual SAN): A software-defined storage solution integrated with
vSphere that enables hyper-converged infrastructure (HCI). VMware generates
additional revenue from vSAN licenses.
● Allows expansion of product offerings and create tiered pricing that can support
different levels of enterprise needs. Hence, required Enterprise License.
9
Growth
Market Share and Adoption of VMware VSphere
Current Customer(s) - 24,734
Market Share (Est.) - 10.98%
Ranking - #3
Top Competitors - Hyper-V, Citrix Hypervisor, Google Compute Engine etc.
Adoption Across Industries:
vSphere’s versatility and robust feature set makes it a popular choice across industries such
as healthcare, finance, retail, and manufacturing. Organizations valued its ability to handle
mission-critical workloads, support hybrid cloud environments, and enable disaster
recovery.
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