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VMware Cloud on AWS pricing will vary in APAC

Prices for the hybrid cloud service in Asia-Pacific will differ based on market differences such as scale and maturity in adopting virtualised infrastructure

VMware will vary prices for its newly minted VMware Cloud on Amazon Web Services (AWS) when the service becomes available across the Asia-Pacific (APAC) region by the end of 2018.

Without revealing specific pricing details, VMware’s senior vice-president and general manager in Asia-Pacific and Japan, Duncan Hewett, said the pricing for VMware Cloud on AWS would “differ slightly” based on market differences.

For example, enterprises in China tend to enjoy larger economies of scale from virtualised infrastructure, given the huge markets they serve, while those in Malaysia and Thailand may have just started virtualising their systems on a smaller scale and are hence more price-sensitive.

First available through the AWS US West (Oregon) region, VMware Cloud on AWS allows enterprises running VMware’s vSphere-based software stack to harness AWS’s bare metal infrastructure to power their applications, expand their datacentre footprint and facilitate disaster recovery.

At the VMworld 2017 keynote this week, AWS’s CEO Andy Jassy noted that VMware Cloud on AWS was more cost-effective than other hybrid cloud offerings.

The service on the Oregon region costs $8.37 per hour per host, which translates to $6,109 per month, according to VMware. The cost can be slashed further if enterprises take up one-year or three-year subscriptions, with savings of 30% and 50%, respectively.

In fact, running VMware on AWS with a three-year subscription could be cheaper than doing so on-premise.

We’re not going to go out to market and slaughter others based on price.
Ron Goh, VMware

Based on VMware’s estimates, the total cost of ownership (TCO) – in terms of cost per virtual machine per hour – could range from $0.06 to $0.09, depending on an organisation’s infrastructure consolidation ratio. In contrast, the TCO for on-premise infrastructure would be between $0.10 and $0.17, depending on the IT environment, according to VMware.

While this could alleviate any pricing barriers that might deter organisations from using AWS to augment their on-premise infrastructure, VMware is not about to engage in a price war.

“At the end of the day, it’s our desire to articulate our value proposition, and not how cheap [the service] is,” said Ron Goh, president of VMware Southeast Asia and Korea. “We’re not going to go out to market and slaughter others based on price.”

Read more about cloud computing in APAC

At least one company has stepped up to help enterprises determine if VMware Cloud on AWS is a cost-effective way to kickstart their hybrid cloud strategies.  

US-based CloudPhysics has developed a self-service offering designed to assess the suitability of VMware Cloud on AWS across an organisation’s datacentres with minimal configuration or time commitment. It also offers a partner-facilitated, 30-day, detailed and customisable assessment service.

“CloudPhysics’ assessments for VMware Cloud on AWS are an effective way to jumpstart a customer’s cloud migration journey. The assessments provide a simple, low-impact means to accurately envision the post-implementation landscape of VMware Cloud on AWS, without having to migrate anything first,” said Richard Sexton, CEO of CloudPhysics.

Read more on Infrastructure-as-a-Service (IaaS)