On March 30, 2009 Citrix opened the floodgates and started offering Citrix XenServer Enterprise for free. However to get some of the enterprise features such as High Availability it is necessary to purchase Citrix Essentials for XenServer. Here is a comparison of enterprise virtualization offerings from Citrix and VMware:

• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2,750 per server with one year Subscription Advantage.
• VMware vSphere Enterprise: $2,875 per CPU (up to 6 cores) + VMware vCenter Server Standard: $4,995.

Price Comparison

• N two-way servers (N > 3): $4,995 + N x $3,000
• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2,750 x N
• Citrix XenCenter: $0
• VMware vSphere Enterprise: $5,750 x N
• VMware vCenter Server Standard: $4,995

• N four-way servers (N > 3): $4,995 + N x $8,750
• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2750 x N
• Citrix XenCenter: $0
• VMware vSphere Enterprise: $11,500 x N
• VMware vCenter Server Standard: $4,995

 

  Examples

• 5 two-way servers: $4,995 + 5 x $3,000 = $19,995 savings with Citrix XenServer
• 5 four-way servers: $4,995 + 5 x $8,750 = $48,745 savings with Citrix XenServer
• 10 two-way servers: $4,995 + 10 x $3,000 = $34,995 savings with Citrix XenServer
• 10 four-way servers: $4,995 + 10 x $8,750 = $92,495 savings with Citrix XenServer

To take full advantage of VMware vSphere Enterprise six-core licensing limit, it may be worthwhile to consider the following servers with six-core AMD and Intel processors to maximize VM density:

With AMD Opteron 24xx or 84xx Series

• HP ProLiant BL465c G6, BL495c G6, BL685C G6
• HP ProLiant DL385 G6, DL585 G6, DL785 G6
• IBM BladeCenter LS22, LS42
• IBM System x3755
• Sun Blade X6240, X6440
• Sun Fire X4140, X4240, X4440

With Intel Xeon 74xx Series

• HP ProLiant BL680c G5
• HP ProLiant DL580 G5
• IBM System x3850 M2, x3950 M2
• Sun Blade X6450
• Sun Fire X4450

Of course software licensing costs are only a component of the total cost of ownership and a number of other factors such as performance and management applications available must be considered when choosing a virtualization platform. This is exactly what solution providers using Lanamark Suite try to accomplish when presenting enterprise customers with side-by-side comparisons across end-to-end virtualization solutions that encompass hardware, software and service components.

To provide enterprises with virtualization management capabilities, Citrix offers Citrix Essentials for XenServer and Hyper-V in Enterprise and Platinum editions. What's interesting is that the pricing for the Hyper-V version is actually cheaper than it is for the XenServer version. In essence, Citrix is incentivizing customers to go with Hyper-V.

As of October 22, 2009 the per-server pricing is as follows:

• Citrix Essentials for XenServer, Enterprise Edition: $2,750 USD
• Citrix Essentials for Hyper-V, Enterprise Edition: $1,650 USD
• Citrix Essentials for XenServer, Platinum Edition: $5,500 USD
• Citrix Essentials for Hyper-V, Platinum Edition: $3,300 USD

In a nutshell, Citrix Essentials is

• $1,100 more expensive per physical server running XenServer for the Enterprise Edition
• $2,200 more expensive per physical server running XenServer for the Platinum Edition

 

  What's even more interesting is that Citrix even offers a free Citrix Essentials Express Edition for Hyper-V but not for XenServer.

Regardless of the underlying platform selected, Lanamark Suite supports virtual infrastructure solution design (including licensing calculations) for both Citrix XenServer and Microsoft Hyper-V. Citrix Essentials in Enterprise and Platinum Editions as well as Microsoft System Center Virtual Machine Manager can be included in the what-if scenarios presented to enterprise customers by Lanamark partners.

With VMware continuing to dominate the marketplace and other competitors emerging, Microsoft is skillfully playing virtualization chess. How can Microsoft build a dominant position in the virtualization marketplace while showing goodwill towards the Linux community and completely isolating its competitors? Here is how

1. Provide (selective) support for Linux. Novell SUSE Linux Enterprise Server is the only Linux distribution officially supported by Microsoft Hyper-V.
2. Offer an alternative virtualization platform for enterprises using Linux that is interoperable with Hyper-V. This is where Citrix XenServer comes in, partially because it provides much broader support for Linux guest operating systems.
3. Build virtualization management applications that span the two. This is where management applications such as Citrix Essentials for XenServer and Hyper-V come in. Microsoft System Center and Novell PlateSpin family of products will also provide cross-platform support.

To maximize its grip over the virtualization marketplace, Microsoft wants customers to choose between a Linux- and a Windows-based hypervisor that it endorses and supports. The strategy code looks like something this:

if customer(running primarily Windows & wants Windows-based hypervisor) then return Microsoft Hyper-V + Microsoft Windows Server

else if customer(running primarily Linux & wants Linux-based hypervisor) then return Citrix XenServer + Novell SUSE Linux Enterprise Server

else return Microsoft Hyper-V + Microsoft Windows Server

This approach gives customers choice and essentially isolates all the other Linux-based virtualization platform vendors: Red Hat, VMware, etc... This approach is also sound from an anti-trust perspective because it would ensure that Microsoft is not perceived as a monopoly in the virtualization space a few years from now.

On March 30, 2009 Citrix opened the floodgates and started offering Citrix XenServer Enterprise for free. However to get some of the enterprise features such as High Availability it is necessary to purchase Citrix Essentials for XenServer. Here is a comparison of enterprise virtualization offerings from Citrix and VMware:

• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2,750 per server with one year Subscription Advantage.
• VMware Infrastructure Enterprise: $6,958 per 2 CPUs + VMware vCenter Server: $6,044 with one year Gold Support for both products.

Price Comparison

• N two-way servers (N > 3): $6,044 + N x $4,208
• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2,750 x N
• Citrix XenCenter: $0
• VMware Infrastructure Enterprise: $6,958 x N
• VMware vCenter Server: $6,044 

• N four-way servers (N > 3): $6,044 + N x $11,166
• Citrix XenServer Enterprise with Citrix Essentials for XenServer Enterprise Edition: $2750 x N
• Citrix XenCenter: $0
• VMware Infrastructure Enterprise: $6,958 x 2N
• VMware vCenter Server: $6,044 

Examples

• 5 two-way servers: $6,044 + 5 x $4,208 = $27,084 savings with Citrix XenServer
• 5 four-way servers: $6,044 + 5 x $11,166 = $61,874 savings with Citrix XenServer
• 10 two-way servers: $6,044 + 10 x $4,208 = $48,124 savings with Citrix XenServer
• 10 four-way servers: $6,044 + 10 x $11,166 = $117,704 savings with Citrix XenServer

Of course software licensing costs are only a component of the total cost of ownership and a number of other factors such as performance and management applications available must be considered when choosing a virtualization platform. This is exactly what solution providers using Lanamark Suite try to accomplish when presenting enterprise customers with side-by-side comparisons across end-to-end virtualization solutions that encompass hardware, software and service components.

As soon as VMware releases its new pricing, a new before-and-after comparison will be published.

As companies look at desktop and server virtualization to cut costs and improve operational efficiencies, "free" virtualization products may sound very attractive. The reality is that enterprises do not buy virtualization products - they buy virtualization solutions composed of

• Virtualization platforms
• Management applications
• Hardware: servers, storage, networking
• Services: consulting, system integration, hosting

There is no such thing as "free virtualization" - every vendor in the virtualization space is looking to build a business, not a philanthropy. So when evaluating the cost of a virtualization solution, it is valuable to consider all components in that solution. Service providers using Lanamark Suite do just that - they present virtualization solution options to enterprises across virtualization platforms with hardware, software and service components. This ensures that the comparison is accurate and valid.

So how are vendors supposed to make money when virtualization products such as Citrix XenServer, Microsoft Hyper-V and VMware ESXi are free? Here is how:

1. Shift value up the stack towards management applications

Citrix offers Citrix Essentials for XenServer, Microsoft has a System Center family of products and VMware has too many management applications to list here. The picture is very similar with other vendors.

2. Sell additional products and services

Ultimately having a relationship with a customer is very important to each vendor. So giving away a free product is simply an investment in building and growing this relationship.

Microsoft built a phenomenal business by getting Windows (without giving it away) onto almost every PC and then building applications on top of Windows to grow the business relationship it has with each customer. VMware is attempting to deploy VMware Infrastructure (essentially an operating system) into every data center and then use it as a foundation to offer customers a broad array of management applications on a single platform. Sounds familiar?

How to choose?

So before deciding which virtualization platform to go with, it is essential to consider:

1. Total cost of the virtualization solution with management applications, hardware and services, as well as ongoing administration.

2. Where the vendor is moving long-term and what additional products and services from this vendor's portfolio are attractive.

3. Vitality of the vendor's ecosystem of software, hardware and services partners who offer other key parts of the solution.

Nothing is more expensive than trying to switch platforms. This is why choosing a virtualization vendor should not be a tactical decision based on "free" products and bells and whistiles alone. It needs to be a strategic decision and consider the total cost of the virtualization solution.

Simon Crosby, CTO at Citrix Systems recently responded to our blog post on why there may be great synergies between Parallels and Symantec by writing his own post entitled The Strategic Role of the "Could Be" Vendors. Despite our different views on the topic, Citrix and Lanamark have a great relationship and I correspond with Simon regularly. Citrix has also been working closely with Lanamark as a design partner on the Server Virtualization Design Module and Lanamark provides first-class support for Citrix XenServer in Lanamark Suite.

That said, Simon's blog post merits a response:

1. Lanamark hasn't "just signed a deal with Symantec and/or Parallels". We have a great relationship with Parallels and actively work with Parallels partners world-wide. Same goes for Citrix, Microsoft, Sun Microsystems and VMware as well as their channel partners. In fact Citrix XenServer and VMware ESX were the first two platforms supported by Lanamark Suite without any "deals" with Citrix or VMware.

2. As a company that focuses on enabling solution providers to deliver virtualization assessment, planning and design services we know a thing or two about virtualization platforms. If Parallels delivers what it promises, then it will have a more versatile and robust virtualization solution that offers high consolidation ratios, automation and performance.

3. If Citrix did not acquire XenSource then it would have been in a similar position Symantec is in today, simply partnering with other platform vendors such as Microsoft. But given its robust portfolio of virtualization, backup, DR, security and other systems management soluions, Symantec has a lot of potential to be a leader in the virtualization space not just a "could be" vendor.

4. Parallels owns significantly more than a "microslice" of the web hosting market and has healthy growth in enterprise deployments.

5. A virtualization platform is of marginal value to an enterprise without proper management and automation tools. So in evaluating whether a solution is free, it's important to consider the TCO of all components in a solution, including automation and management applications that are needed to make the most of the virtualization platform. Hence while Citrix XenServer is free, the reality is that the complete solution is not, unless Citrix of course starts to give away management applications in Citrix Essentials for free as well.

Starting in 2007, Symantec has been quietly building a virtualization solutions portfolio through a string of acquisitions:

• January 2007: Altiris - application virtualization
• April 2008: AppStream - application virtualization
• August 2008: nSuite - connection broker

In Spring 2009, Symantec plans to release an integrated and enhanced suite of products from its acquisitions in the Symantec Endpoint Virtualization Suite which will compete with:

• Citrix XenDesktop and Citrix XenApp
• Microsoft MED-V and Microsoft App-V
• VMware View and VMware Thinstall

Despite its efforts, Symantec is missing a key component in its offering to take on Citrix, Microsoft and VMware: a virtualization platform with comprehensive management and automation capabilities. Citrix knew the importance of not solely relying on third-party virtualization platforms, acquiring XenSource in 2007. And although $500 million seems like a big investment (it is) strategically Citrix is well-positioned to offer a complete, integrated virtualization stack to enterprise customers with Citrix XenServer, Citrix XenDesktop and Citrix XenApp, accompanied by management applications offered in Citrix Essentials and from Citrix partners such as Marathon Technologies.

So what can Symantec do to bolster its virtualization offering? Will there be a window of opportunity for the software giant to offer customers an end-to-end solution from the desktop to the data center or will it continue to simply partner with Citrix, Microsoft and VMware?

Enter Parallels. While Parallels has taken its time to build a bare-metal hypervisor, the company knew that it could not bring a second rate product to market given the fierce competition. So instead of launching Parallels Server prematurely, Parallels continued to build and refine a virtualization offering that is technologically superior to anything currently available on the market:

• Hybrid OS and hypervisor virtualization solution with integrated management and automation
• Memory over-commit (currently available only in VMware ESX) for higher consolidation ratios
• Live migration for OS containers (no downtime) and virtual machines (short downtime) without shared storage requirement (comparable to VMotion and Storage VMotion from VMware)
• Data protection with live backups and snapshots

There is more...

• Comprehensive storage support for SAN, iSCSI and NAS
• Built on top of high-performance, scalable and proven Parallels Virtuozzo Containers kernel that is deployed on more than 50,000 servers world-wide
• P2V and V2V migration tools with support for converting OS containers to virtual machines
• It also looks like there may be a hardware abstraction layer (similar to VMware ESX) that would allow migrations across heterogeneous servers (not possible with Xen or Hyper-V)

To top this off, Parallels already has market-leading virtualization products for desktops: Parallels Workstation and Parallels Desktop for MAC (with over one million copies sold world-wide).

So why should Symantec (and other vendors such as Oracle) take notice? Because with a single acquisition, it would be possible to obtain superior virtualization technology for desktops and servers with integrated automation and management. Furthermore, while other virtualization vendors are talking about cloud computing, Parallels is probably best positioned to be a leader in this space because it already owns dominant mind and market share in the hosting market. In other words Parallels has leapfrogged all the other vendors.

Parallels may be late to the party with its bare-metal hypervisor but it is going to crash the party once it arrives, and certainly turn some heads. And with Parallels channel partners already using Lanamark Suite for delivering virtualization services to drive Parallels virtualization products to enterprise customers, Parallels will be unstoppable.

Response to Simon Crosby's blog post is here

Citrix today announced that it will make Citrix XenServer Enterprise available at no charge to customers. How does its offering compare to that of Microsoft?

Since Microsoft Hyper-V is free and because Microsoft is making revenue from its System Center family of systems management products, this move will further align Citrix with Microsoft. Furthermore, because Citrix is going to support Hyper-V in its Citrix Essentials management package and because Microsoft is going to support Citrix XenServer in System Center Virtual Machine Manager, the virtualization offerings from both vendors are becoming increasingly symmetrical:

• Citrix XenServer Enterprise (free) with Citrix Essentials management applications ($).
• Microsoft Hyper-V (free) with System Center management applications ($).

That said, there are several areas where the offering from Citrix shines compared to the one from Microsoft:

Live Migration

• XenMotion is included with Citrix XenServer Enterprise.
• Microsoft is not going to have live migration capabilities until Windows Server 2008 R2 is released (in 2010 most likely).

Multi-server Management

• Citrix is giving away XenCenter for free to allow enterprises to manage multiple hosts.
• The equivalent Microsoft System Center Virtual Machine Manager offering is priced at $869 USD per managed server. Alternatively, customers may purchase Virtual Machine Manager as part of the System Center Server Management Suite Enterprise at $1497 USD per managed server.

Lab Management and Stage Management

• Citrix partnered with VMLogix to include stage and lab management capabilities as part of Citrix Essentials.
  
• Microsoft is going to offer lab management capabilities as part of Microsoft Visual Studio Team System 2010.
  

It is clear that Citrix and Microsoft will continue creating a unified front against VMware. The most recent announcement from Citrix declaring extension of its 20-year partnership with Microsoft into server virtualization underscores this.

Regardless of whether Citrix XenServer Enterprise or Microsoft Hyper-V is the target virtualization platform, planning for these environments side-by-side is becoming increasingly important. Products such as Lanamark Suite and Novell PlateSpin Recon make this possible.

Learn more about the Sever Virtualization Design Module with support for Citrix XenServer, Microsoft Hyper-V and other virtualization platforms.