I guess putting VMware and pitting VMware against the typical low cost rivals may be unfair. Unfair since VMware has also indulged in “counter-disruptive” low cost strategy. They have so far responded adequately to counteract the moves of the “known competitors”. The knowledge of their products and its capabilities. Lets just take one competitor for instance , Microsoft’s Virtual Server ( software acquired from the firm connectrix ). They knew by releasing the GSX server (in the form of Free Virtual Server) would stall and force such low cost competitors to freeze. A pretty good example of a “strategic entry deterrence”. As Wikipedia would describe it. Strategic entry deterrence involves any action taken by an incumbent firm that seeks to discourage potential entrants from entering into and competing in the market, even if it is not profit maximising to do so in the short-run. A good move, but a move that was based on the knowledge that VMware had. A move also that made t...
REAL-TIME MARKET ANALYSIS & RESEARCH ON CLOUD COMPUTING, FINANCIAL MARKETS, VIRTUALIZATION, GLOBAL SOURCING, EMERGING TRENDS AND BUSINESS STRATEGIES