Last week, Microscope reported that VMware is going to cut its list pricing by 10% on Monday.  Oddly enough, VMware announced a 10% price hike in September... so, I guess that will put us back to square one where we started? 

Some distributors have been gradually increasing their list price in October to counter exchange rate movements and before VMware’s move Interchange had this week warned resellers to expect a 15% rise on Monday.

Matt Piercy, senior director of OEM alliances EMEA confirmed the price reduction and hoped distributors, all of whom buy its software in dollars, would now decide to shelve plans to hike prices.

“We are making this move in a market where the currency exchange rate is starting to hurt our channel partners,” he said.

...

Sources close to the vendor said VMware had not predicted the sweeping moves in the currencies at the time of the September price rise which was making its products appear to be around 20% more expensive.

With Microsoft entering the virtualisation space in the summer, one reseller said VMware needed to sharpen its competitive edge as the giant from Redmond was gunning for market share.

Prices from competitors are said to be on the rise as well, though some are still offering free products and hoping to continue to eat away at VMware's market lead.  Where VMware stands out against their competitors is their technological lead and maturity, though many argue that their price is too high.  True or not, it looks like their pricing is about to be brought back down to where it was before the price hike.