this post was submitted on 06 Dec 2024
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It was a dumb move. They had a niche market cornered, (serious) enterprises with on-prem infrastructure. Sure, it was the standard back in the late 2000's to host virtualization on-prem but since then, the only people who have not outsourced infrastructure hosting to cloud providers, have reasons not to, including financial reasons. The cloud is not cheaper than self-hosting, serverless applications can be more expensive, storage and bandwidth is more limited, and performance is worse. Good example of this is openai vs ollama on-prem. Ollama is 10,000x cheaper, even when you include initial buy-in.
Let VMware fail. At this point they are worth more as a lesson to the industry, turn on your users and we will turn on you.