For those that may have missed it, VMware announced an update to its per-CPU “pricing model”, i.e. licence metric, yesterday.  Significantly, it was the virtualisation giant’s fiscal year end on Friday, so they clearly want to get the new year off to a flying start.  As is typical of software vendors, VMware couched the announcement in terms which, on the face of it, would suggest that they have their customers best interests at heart.  But I think we all know that’s probably not true.

VMware:  “Today we announced an important update to our per-CPU pricing model, reflecting our commitment to continue meeting our customers’ needs in an evolving industry landscape. This new pricing model will give our customers greater choice and allow us to better serve them.”

Translation:  “We want to make more revenue out of the trend towards higher spec’d multi core CPU chips.”

In truth, this could actually just be the first step on a transition to a core licensing metric for the vendor’s key product sets.  VMware are one of the few vendors that still sell products in a CPU metric that only ever means socket CPU chips.  Of the software mega-vendors, IBM and Oracle both made the switch to processor cores years ago (although the latter still measures by socket CPUs on Standard edition products using their Processor metric), and Microsoft removed their final processor metric with the transition of Windows Server and System Centre to cores in 2016.  This move by VMware shouldn’t be that much of a surprise to industry watchers.  So what is the actual change they are making?

The updated metric goes live on 2nd April this year, however VMware are allowing a grace period for any customers in the middle of purchasing hardware for a vSphere platform up to 30th April.  After that date, a single licence for any VMware product using the CPU metric, will only cover up to 32 cores on that CPU.  Put simply, for each 32 core block on a single CPU chip, you’ll need an additional licence.  Considering that, even now, both Intel and AMD have several processors in the marketplace with greater than 32 cores, the costs could soon stack up for enterprises who choose to maintain an on-premise datacentre presence.  Or, for those that choose to put their infrastructure in hosted datacentres or public cloud platforms, you may well see the additional processor licence cost passed on to you as a service, as the datacentre providers start to feel the pinch.

Our graphic shows how the new metric will work in practice.  I guess the key question, however, is “how will it affect me if I’m already running processors with greater than 32 cores?”.  VMware apparently has the answer to that.  The press release tells us that customers who buy licences before 30th April for CPUs with 32 cores or more will be able to apply for additional free licences before 29th January next year, to cover the additional requirement for those CPUs.  This can be done via your reseller or by raising a ticket in My VMware, though there are, as you might expect, some conditions:

Kind old VMware is updating its pricing model in a move to “continue meeting our customers’ needs”. Provided those needs involve paying more for CPUs with more than 32 cores.

You lucky people.

Pricing is being tweaked upwards where software is licensed on a per CPU basis. If the chip has more than 32 cores like, say, a 64 core AMD EPYC, then users will need to fork out for two CPU licences.

Both AMD and Intel will cheerfully sell punters chips with more than the requisite 32 cores, and utilising such chippery with the original per-CPU pricing was, in a very real way, a useful method of getting more bang for one’s buck from the software.

With Intel struggling to make enough of its high-end hardware to satisfy demand, AMD looked set to steal a march with the likes of the EPYC 7742. VMware’s pricing change will you make you think twice about the benefits of sticking a core-dense processor into a server with a view to keeping software costs down.

Virtzilla claims “the change moves VMware closer to the current software industry standard model of core-based pricing” and indeed, the likes of Microsoft and Oracle both use core-based pricing these days, although even the most determined apologist would struggle to suggest the move is aimed at anything other than boosting the bottom line.

Naturally, observers have been less than impressed by the move.

We Brits are still feeling the pain of British Airways yanking the free bar and sandwiches on short-haul flights in favour a paid-for alternative because, hey, everyone else does and people love more choice, right?

Hardware costs have tended to take a back seat to licensing expenses, but the focus on cores by some vendors will swing the pendulum back to the hardware. The Reg, however, doubts that VMware’s owner, in the form of hardware-slinging Dell, will be losing too much sleep over that.

The virtualisation subsidiary has generously given customers a bit of time before the core-counters come a-calling. Licences purchased for CPUs with more than 32 cores will be eligible for additional free per-CPU licences if bought before 30 April 2020. You’ll also need to be on a VMware support contract (and will be charged for Service and Support on those freebie licenses come renewal time.)

Still, “the vast majority” of the install base is still rocking 32 cores or less on Intel or AMD hardware (not hard for the former – most of Intel’s less exotic Xeons hover at 28 cores or less) so the impact won’t be felt until customers try to upgrade or scale their hardware.