VMware is cutting their prices to ward off increasing competition from aggressive technology giant Oracle Corp.
VMware said on Tuesday it will give 40-percent discounts to existing users of Virtual Iron, a product that Oracle recently acquired. The three-month promotion includes 10-percent discounts on support contracts also.
While VMware controls an estimated 80 to 85 percent of that market, analysts say that No. 2 player Microsoft Corp could gain share when it upgrades its rival product within the next three weeks.
Oracle spokeswoman Deborah Hellinger had no comment on VMware’s discount program.
Oracle, the world’s No. 3 software maker, introduced a niche virtualization software product in November 2007 that has not garnered much attention in the market.
It has been expanding in the hot market over the past few months with its purchase of Virtual Iron and its pending $7 billion acquisition of Sun Microsystems Inc, which has a broad portfolio of virtualization technologies.
Oracle has not said how much it paid for privately held Virtual Iron.
