Hardware is the price variable

With EVO, VMware is pitting the hardware vendors against each other for deals that will likely involve hundreds to thousands of nodes in large enterprises, and the competition will drive down hardware prices and therefore the overall price of the EVO solution. If hardware costs less than it might otherwise without such pressure, that extra margin can come from the software and support in the EVO stack.

It’s rough being a hardware vendor. At the VCE level, pro-services is another margin lever to play with (mostly the increase price, not discount), but that’s a bit up market.

Hardware is the price variable