Friday, June 27, 2008

Market leaders:Your position might not be there forever

I would not like to be in WMWare's shoes now. Microsoft has now released its virtualization software Hyper-V that Microsoft released before its planned schedule. Based on an article from Redmond Developer News, the beta had more than 1.5 million downloads. What makes this a killer is that it is priced retail for $28 and this is something that WMWare is going to struggle with as their comparable solution is between $7000 to$14.000 based on an article from Tietoviikko.com. WMware has been the gorilla in this market and now Microsoft is going to take a stab at this market by going with pricing that is a fraction of what WMWare is asking. This is yet another case where assumed marketleaders can face competition beyond their dreams. Mary-Jo Foley (author of Microsoft 2.0 book from Wiley).

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