Virtualisation software maker VMware will slash the price its distributors buy at by 10% from Monday, according to a report in IT channel magazine Microscope.
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This price reduction will be passed on to customers as the virtualisation specialist attempts to boost its competitiveness.
It cancels out a 10% rise the supplier introduced on 1 September, which combined with the rallying of the US currency has made VMware less competitive, particularly against Microsoft, said partners.
Matt Piercy, senior director of OEM alliances for EMEA, confirmed the price reduction and hoped distributorswho buy its software in dollars, would decide to shelve plans to hike prices.
Piercy said, "I hope our move means [distributors] will not raise their prices, I cannot control the price our partners sell at, but as a vendor we are taking positive steps".
Sources close to the supplier said VMware had not predicted the sweeping moves in the currencies when the price rises were made in September.